Since the establishment of CHT R. Beitlich GmbH in Tübingen more than 60 years ago, the CHT/BEZEMA Group has developed into a worldwide company group focusing on special chemicals used as auxiliaries and additives as well for functionalization within industrial processes.

Since 2015, Dr. Frank Naumann has been leading the CHT Group. Dr. Frank Naumann is responsible as Managing Director for the entire Group for R&D, Marketing and Sales. 

Figure 1:  Dr. Frank Naumann, CEO, CHT Group.

Recently, Dr. Frank Naumann, CEO, CHT Group in an interview with Textile Today, shared CHT’s recent investment in Bangladesh’s production facility as the Group believes the market will keep growing and increase its competitiveness.

Textile Today: Could you please briefly enlighten us about CHT Group and its contributions to the textile industry?

Dr. Frank Naumann: First of all, this is a very special occasion, as we have inaugurated the CHT Bangladesh textile chemical production site on 9 May 2023 – to operate more closely with our Bangladeshi customers.

Also, 2023 has been very special – as this year marks the 70th anniversary of CHT Group. In the last 7 decades, we have grown into a €700 million sales organization with around 2400 people employed and roughly around 450 million textile customers.

Textile Today: Why have you chosen Bangladesh for opening a new textile chemical manufacturing factory?

Dr. Frank Naumann: We started our cooperation with our local partner RH Corporation as an exclusive sales distributor in Bangladesh in the mid-90s. We always believed in the Bangladesh market and we do so even more. CHT Group has a DNA as the first mover in many areas of product innovation, as well as, investments in assets, and people. Having said that, this market continues to be a very important market. And we see potentially being closer to the customers, shortening the lead-time, exploiting more opportunities for our customers and for us – these are synergies we want to create.

Textile Today: As CHT has been contributing to the leading fashion brands – and what are the major trends you see nowadays?

Dr. Frank Naumann: We believe in the synergies between working with fashion brands, textile mills, NGOs and with all stakeholders involved. Of course, the major fashion brands play a major role. CHT Group has strengthened its brand and retail management to better understand its needs.

For the last couple of years, in terms of megatrends, sustainability is leading among all the other trends. Second is higher textile quality and at the same time, offering very competitive prices. So, that might be a triangle – which suppliers like us need to solve. The brands and textile mills need to solve this.

Figure 2: Dr. Frank Naumann, CEO, CHT Group discuss with Tareq Amin, Founder & CEO, Bangladesh Textile Today.

Textile Today: Now, as you are manufacturing in Bangladesh, so will it going to help the brands and local textile manufacturers to achieve more environmental and price sustainability?

Dr. Frank Naumann: Brands want to be in a position where they can place their orders to the mills according to relatively fast trends, reactions, or market developments. And here comes our Bangladesh plant. We are able to directly supply our Bangladeshi textile mills with a very short lead time – delivering within a few days – which puts them in a better position to react to the demands of the brands. Ultimately increasing the competitiveness of the overall value chain.

Regarding sustainability, CHT has been placing really unique products globally – especially in the Bangladesh market. For instance, CHT’s patented organIQ BLEACH system creates sustainably impressive used effects and it is an organic and completely biodegradable bleaching agent for denim.

In addition, our BEZAPRINT pigments and printing pastes are 100% biodegradable – CHT’s screen printing pastes comply with many RSLs and ecological guidelines of the various brands and ecological labels.

And in the long run, the global trend is going towards having less fast fashion – I think, quality and sustainable fashion will impact more and more in the Bangladesh market. 

So, we believe that with our product ranges – quality will be improved – resulting in a longer lifespan of garments. And at the same time, the total cost of ownership will be reduced. For example, dyeing a high-quality black T-shirt will require less water, energy and ultimately less impact on the environment. Most importantly, it will make our customers more price competitive. 

Textile Today: Could you share with us some of the key sustainability initiatives that your company has undertaken in the manufacturing process, and how do you plan to ensure that your products have a minimal environmental impact?

Dr. Frank Naumann: Indeed that is of utmost importance. CHT looks at its customers' sustainability processes and also looks very carefully at its own manufacturing processes. As a testimony of that, we won several times in a row the ‘National Award’ from the chemical industry being the most sustainable company for the medium-sized companies.

We signed the UN’s sustainable development goals (SDG). Where all the projects we initiate - have to be in line with the UN’s SDG goals. 

Not to mention, we are the first movers when it comes to biogas in our own production sites. We continuously measure waste, water treatment, etc. 

Textile Today: CHT is an innovation-driven company. What is your current innovation focus? What new the industry can expect from an innovative company like CHT?

Dr. Frank Naumann: Sustainability plays a major role in our innovation focus. We look into biodegradable materials more and more. We are dealing with topics like - how can we reduce microplastic and self-healing polymers.

In terms of cost competitiveness, we keep in mind, using materials with ultimately the same performance or ideally even better performance at a better cost ratio. Sustainability and cost competitiveness – these two factors are definitely drivers.

When we talk about the circular economy – as fibers are getting recycled more often - the question that comes up is, can we treat them differently? This needs understanding and R&D. Because we believe that ultimately, the fashion industry will evolve to less fast fashion and more trends towards the circular economy. To cater to this, you need to have versatile chemical products to really create benefits for us and especially for textile customers.

Textile Today: For textile customers, energy cost rise – locally and globally – is a big issue. Do you consider this in your product line?

Dr. Frank Naumann: Indeed we consider this fact greatly. As I have mentioned regarding water saving and at the same time, less energy consumption regarding temperature, bath time and all these elements - we have to have an understanding of what chemical molecules within a chemical product can do in the processes.

We believe that smart chemistry and character cab offset the current energy challenges.

Textile Today: At the same time, you must need a strong support for the application as well. How do you design to support the customers? And how are you doing it in Bangladesh?

Dr. Frank Naumann: Indeed, it is not only the lab chemists, bench chemists developing the products - it is also the customers, wherever they are and wherever they wish to apply the products in their individual processes. That needs application specialists and able service team. And CHT has strengthened that over the years. We feel that we are in a good position and we get good customer feedback. 

As for Bangladesh, I am extremely impressed by the capabilities of our labs and the young engineers of the local team. And the highly sophisticated machinery and process systems.

Textile Today: Kindly share with us your impression of the Bangladesh textile industry.

Dr. Frank Naumann: The textile industry here is moving in the right direction, as I have mentioned above - it is the quality. We, at CHT, also want to be long-term partners with customers who are focusing on quality. And being cost-competitive at the same time. And Bangladesh’s textile industry is moving in the right direction of quality. And we are ready to support and help our customers.

What I can foresee, Bangladesh's textile and garment industry will keep and increase its competitiveness. I am very optimistic about the industry’s growth. That is why we have made a substantial investment because we believe in the market. And for CHT, as a company, we are really focusing on this region and especially on Bangladesh.

Textile Today: When in chemical supply chain major companies like Archroma and Huntsman merge would there be any impact of it? How CHT is positioning itself?

Dr. Frank Naumann: It is a merge of Elephants, so to say. They are different from us. I mean we are a foundation-owned company for the last 70 years. We go for long-term relationships. We invest in medium or smaller-sized customers - where we can be present with our technical sales force. 

For CHT, we believe that with our size and activity - with who we are and what we are capable of in developing products and our services - that we are in a very good position.

Textile Today: What is CHT Group’s core strength and how are you growing now?

Dr. Frank Naumann: As mentioned before, we are strong on innovation and on service quality. And we believe, with all the challenges we have mentioned – reducing energy consumption and increasing cost competitiveness – I think there is more than a niche market for what we have to offer. 

As a globally leading organization, we feel well positioned to offer today and also in the future for our textile customers.

Textile Today: Kindly share your growth outlook. 

Dr. Frank Naumann: Over the last years, we have been growing significantly in the textile segment exclusively. To be precise 450 million euro. And I am very optimistic that we can grow at a very decent rate over the next few years.