From the Sector

echnology Group ANDRITZ achieved in 2022 the best figures in its history for order intake, revenue, and operating result ( EBITA). ANDRITZ started the new business year with a record order backlog of around ten billion EUR. Together with strict cost and project management and the successful turnaround in the Metals business area with the German Schuler Group, that order backlog will form the basis for further growth and profitability increases in 2023. Subject to the approval by the Annual General Meeting, shareholders will benefit from the excellent business development with a significant dividend increase to 2.10 EUR (previous year: 1.65 EUR) per share.

The results of the business year 2022 in detail:

• The order intake of 9,263.4 MEUR reached a record level and was thus significantly higher than the figure for the previous year (+17.6% compared to 2021: 7,879.7 MEUR). All four business areas contributed to the increase.
• The order backlog as of the end of 2022 amounted to 9,976.5 MEUR and was thus significantly higher than the value for the previous year (+22.2% compared to 2021: 8,165.8 MEUR).
• The revenue saw very favorable development during the 2022 business year and reached a new record level of 7,542.9 MEUR (+16.7% compared to 2021: 6,463.0 MEUR). All four business areas contributed to the increase in revenue.
• The operating result (EBITA) increased slightly more than revenue and reached 648.5 MEUR, also a record level (+18.7% compared to 2021: 546.5 MEUR). All four business areas contributed to the increase in earnings. Profitability (EBITA margin) increased to 8.6% (2021: 8.5%).
• The net income (including non-controlling interests) increased significantly compared to the previous year, amounting to 402.6 MEUR (+25.1% compared to 2021: 321.7 MEUR)

ANDRITZ expects to continue its profitable course of growth in the business year 2023 and anticipates an increase in both revenue and earnings compared to 2022.

Kelheim Fibres, a leading manufacturer of viscose speciality fibres, has joined Recycling Atelier Augsburg. Recycling Atelier Augsburg is a unique centre for research and development in the field of textile recycling. It is located at the Institut für Textiltechnik Augsburg an affiliated institute of Augsburg University of Applied Sciences. The two institutions founded the Recycling Atelier in June 2022 together with twelve partners from the German textile industry.

In the Recycling Atelier, the focus is on the triad of technical and ecological sense as well as economic benefit. In this way, the partners of the Recycling Atelier are standing up against fast fashion, outsourced corporate responsibility and a general decline in raw material quality, which often fuels downcycling - the low-quality reuse - of materials.

As a model factory, the Recycling Atelier Augsburg combines the most important processes of textile recycling and offers holistic and comprehensive research along the value chain," explains Georg Stegschuster, head of the Recycling Atelier Augsburg. The scientists research on all process steps of textile recycling: from material analysis to sorting, preparation and textile processing to sustainable product design. Comprehensive data collection and the use of artificial intelligence as well as innovative materials play a central role.

Kelheim Fibres is a producer of high-quality viscose fibres, which consist of cellulose, the main component of the renewable raw material wood, and are used worldwide for products in areas such as hygiene, textiles, and technical applications.

"In New Business Development as well as Fibre and Application Development, we follow the Open Innovation concept - the cooperation with the Recycling Atelier offers us an ideal platform for this. Here we work with partners to advance sustainability and performance," explains Maik Thiel, project manager at Kelheim Fibres.

Recycled cotton fibres are often very short or of uneven length, which makes further processing of 100 % recycled material a challenge. Adding speciality fibres from Kelheim Fibres should enable the production of high-quality new products, such as nonwovens. In the future, the fibres provided by Kelheim Fibres will also be made from recycled pulp.

• Acquisition of QAT Services Limited laboratory in Hong Kong

On 01.03.2023 Hohenstein takes over the DAkkS accredited QAT Services Limited laboratory.  With this acquisition, the internationally recognized testing service provider is integrating the hardgoods knowledge of QATS employees into the Hohenstein portfolio.  As a result, Hohenstein will provide full-service capabilities for Greater China and beyond.

"The expansion is a strategically important step for Hohenstein,” emphasizes Prof. Mecheels, owner and CEO of Hohenstein.  "We are expanding our testing spectrum beyond the textile industry, in which we have been an established service provider for decades – and thus ensure both safe products and secure jobs."  From now on, Hohenstein will also be testing food contact material, furniture, toys and much more.  Hohenstein China Managing Director Christopher Au is also convinced: "With this step, Hohenstein is setting an important focus and strengthening its position for international customers."

AkzoNobel has published its digital Report 2022, which gives details of the company’s ongoing transformation during a challenging year of persistent worldwide uncertainty.

The Report 2022 website includes coverage of AkzoNobel’s financial results and key business developments, while the company’s progress on its sustainability ambitions is highlighted throughout.

The online report offers a wide range of interactive content and infographics. Visitors can also make use of various tools to compare key data and download tables.

Meanwhile, the Sustainability statements – traditionally one of the most visited sections – has been revamped and is themed around the key areas of climate change, circularity, and health and well-being. Several case studies also feature prominently.

Milliken’s Textile Business plans to eliminate all PFAS-containing materials from its portfolio by December 31, 2022.
The company announced a commitment to eliminate all per- and polyfluoroalkyl substances, commonly referred to as PFAS, from the company’s textile finishes and fibers portfolio.

“Sustainability is a core value of our company, and we are and have always been on a quest for continuous improvement,” shares Halsey Cook, president and CEO for Milliken & Company. “As part of our sustainability journey, we are committed to finding innovative and meaningful solutions to reduce our environmental impact. While we do not always begin our journey with perfect information, we strive to make adjustments as new information comes to light.”

“As a values-driven company, we’re always evaluating the needs and demands of the markets we serve. Our promise to our customers is to engineer the highest-quality protective and performance textiles, and our purpose is to positively impact the world for generations,” said Chad McAllister, executive vice president, Milliken & Company, and president, Milliken’s Textile Business.

• Sales of CHF 890.3 million in second half-year 2022
• EBIT margin of around 2% expected for full year 2022
• Order intake of CHF 1 157.3 million in 2022; order backlog of around CHF 1 540 million as of December 31, 2022
• Preparations for ITMA 2023 on schedule
• Implementation of action plan to increase sales and profitability ongoing
• Rieter site sales process on schedule

For Rieter, in addition to the geopolitical uncertainties, the 2022 financial year was characterized by three main challenges:
Due to the rapid rise in inflation, the exceptionally high order backlog of around CHF 1 840 million at the beginning of 2022 was processed at significantly higher costs. It was only possible to offset these higher costs in part by means of price increases and other remedial measures.

In order to safeguard deliveries, it was necessary to compensate for serious material bottlenecks, particularly in electronic components, which resulted in considerable additional development expenditure.

Major expenses were also incurred in connection with the acquired businesses (Accotex, Temco and Winder).

Sales
The realization of sales from the exceptionally high order backlog developed better than expected. With sales of CHF 1 510.9 million, Rieter achieved an increase of 56% compared with the previous year (2021: CHF 969.2 million). In the second half of 2022, especially in the fourth quarter, the measures introduced to address material bottlenecks had a positive impact. Consequently, sales increased to CHF 890.3 million compared with the first six months (first half-year 2022: CHF 620.6 million).

EBIT margin
The trend in the EBIT margin was strongly influenced by substantial cost increases, which could only be offset in part through price increases and other remedial measures. In addition, to compensate for material shortages, expenses were incurred in connection with the development of alternative solutions and the acquired businesses.

Rieter succeeded in improving profitability compared with the first half of 2022 due to the higher sales volume and offsetting measures to compensate for increased costs, and expects a positive EBIT margin of around 2% for the full year 2022 (2021: 4.9%).

Order intake
In line with expectations, the order intake of CHF 1 157.3 million in 2022 was below the record year of 2021 (CHF 2 225.7 million). The market situation is characterized by investment restraint due to geopolitical uncertainties, higher financing costs and consumer reticence in important markets.

Order backlog
The company had an order backlog of around CHF 1 540 million at the end of 2022, which thus extends well into 2023 and 2024. In 2022, Rieter recorded order cancellations of less than 10% of the order backlog of CHF 1 840 million at the beginning of the year.

Preparations for ITMA 2023 on schedule
Rieter has continued to boost its innovative capability and, in order to further extend its technology leadership, will present new innovative solutions at ITMA 2023 in Milan.

Action plan to increase sales and profitability
Implementation of the action plan to increase sales and profitability is ongoing. With regard to the profitability of the order backlog, which remains high, the implemented price increases in combination with a favorable trend in costs, particularly in logistics, are having an impact. In addition, progress was made in eliminating material bottlenecks and reducing expenses for the three acquired businesses.

Rieter site sales process
The sales process for the remaining land at the Rieter site in Winterthur (Switzerland) is proceeding according to plan. In total, around 75 000 m² of land will be sold. The Rieter CAMPUS is not part of this transaction.

Results press conference 2023
Rieter will provide further details on the 2022 financial year and an outlook for the 2023 financial year on March 9, 2023.

Global Fashion Summit, a leading international forum for sustainability in fashion, will convene core stakeholders across the fashion ecosystem and parallel industries to drive tangible action on social and environmental sustainability. The Summit is presented by Global Fashion Agenda (GFA). GFA is a non-profit organisation that is accelerating the transition to a net positive fashion industry, under the patronage of HRH The Crown Princess of Denmark. Global Fashion Summit: Copenhagen Edition 2023 will take place on 27-28 June in Copenhagen, Denmark.

The theme of Global Fashion Summit: Copenhagen Edition 2023 is ‘Ambition to Action’. Under this premise, the Summit will present content experiences focused on tangible impact.

The theme will underly all elements of the Summit and Main Stage speakers will showcase inspiring thought leadership for accelerated change by exploring a matrix of interconnected topics. The 2023 Copenhagen Edition will build on more than a decade’s worth of Summit guidance and outcomes by dedicating even more focus towards action-oriented workshops and case studies. Through these formats, the forum will demonstrate tangible learnings and concrete recommendations that can help drive implementation.
 
The forum will also host strategic roundtable meetings with the aim to mobilise industry leaders to build alliances with solution providers, policy makers, investors and other industry stakeholders and implement immediate solutions. Such alliances can set in motion progress towards a net positive industry. With upcoming policy expected to influence the fashion industry even further this year, the Summit will shed light on the ongoing pieces of legislation currently under discussion both within the EU and worldwide.

This year’s Global Fashion Summit: Copenhagen Edition is supported by Principal Sponsor, Maersk. A globally renowned leader in logistics that aims to deliver a more connected, agile and sustainable future for global logistics. Maersk will support the Summit's agenda to accelerate industry transformation by highlighting how logistics can help the fashion and lifestyle industry in reaching their sustainability goals.

Additionally, the Innovation Forum will present a curated exhibition of other leading sustainable solutions. Summit attendees can meet with exhibitors covering the entire value chain – from innovative materials to end-of-use solutions. Innovation Forum Matchmaking will enable small and large fashion businesses to advance their sustainability journey, by providing the unique opportunity to be matched with relevant solution providers. 

Archroma, a manufacturer of sustainable specialty chemicals and solutions for industries such as textiles, packaging & paper, paints and coatings, announced that it has secured all regulatory approvals required to complete the acquisition of the Textile Effects business from Huntsman Corporation (“Huntsman Textile Effects”).

Both parties expect the transaction, which was first announced on 09 August 2022, to close on 28 February 2023.

Archroma is a portfolio company of US-based private investment firm SK Capital Partners. Since its formation in 2013, Archroma acquired and successfully integrated the global textile chemicals businesses of BASF as well as BASF’s stilbene-based OBA business for paper applications, and M. Dohmen, a specialist in coloration for automotive textiles.

Heike van de Kerkhof, Archroma Group Chief Executive Officer (CEO), commented: “We are very excited to see this acquisition nearing completion. I am deeply grateful to the project teams of Archroma and Huntsman who are preparing for a smooth transition for our employees and partners. After closing, we will be able to bring together our expert teams and highly complementary product portfolios to offer our customers and brand partners the high performance they expect, whilst respecting natural resources and the planet.”

Svegea of Sweden – a member of TMAS, the Swedish Textile Machinery Association – has recently installed an EC300-S collarette cutter for the high speed production of tubular apparel components as well as an FA350 automatic roll slitter at the plant of Löffler, in Ried im Innkreis, Austria.

The EC 300-S collarette cutter is equipped with the computer-controlled True-Drive II and high pre-feed device, which is used by garment manufacturers around the world for the production of tubular apparel components such as cuff and neck tapes and other seam reinforcements. It operates at speeds of up to 20,000 metres per hour. The integrated, fully automatic FA350 roll slitter FA500 roll slitter is equipped with three separately adjustable settings enabling three different band widths to be cut within the same cutting cycle. Automatic tube sewing units are provided for sewn tubes in optional rolled or flat folded forms, depending on customer preference.

Sports and knitwear specialist Löffler is celebrating its 50th anniversary in 2023. Its plant in Ried houses 25 circular knitting machines and three seamless knitting machines with an annual output of around 905,000 square metres of fabric, and in addition to product development, design, cutting and some sewing are all carried out in-house.

Löffler is known for its transtex under garments, which ushered in the two-layer principle of structures combining hydrophobic polypropylene and other fibres like cotton, Modal, Tencel or merino wool.

Before transtex, endurance athletes usually wore pure cotton underwear next to their skin, which became wet over time and cooled the body down. Löffler’s two-layer fabric prevented this, since the polypropylene does not absorb moisture and instead wicks it to the outside, where it can evaporate to keep the skin dry.

Innovation has been ongoing ever since, and in December, Löffler received an ISPO Award 2022 for transtex Retr’x – its latest functional underwear made from recycled polypropylene from textile waste and a combination of recycled and GOTS-certified organic cotton. Transtex Retr’x is neither dyed or bleached and is Standard 100 by Oeko-Tex as well as Made In Green by Oeko-Tex approved.

In addition to its own branded products, the plant makes sports garments for sister company Fischer, which is also based in Ried, and is at the same time involved in significant government tender projects, including the supply of polo shirts for the Austrian Red Cross and for the German and Austrian police forces. Combined, Löffler and Fischer employ approximately 700 people in the region of Upper Austria.

The details of the proposed restriction of around 10 000 per- and polyfluoroalkyl substances (PFASs) are now available on ECHA’s website. ECHA’s scientific committees will now start evaluating the proposal in terms of the risks to people and the environment, and the impacts on society.

The proposal was prepared by authorities in Denmark, Germany, the Netherlands, Norway and Sweden and submitted to ECHA on 13 January 2023. It aims to reduce PFAS emissions into the environment and make products and processes safer for people.

All PFASs in the scope of the proposal are very persistent in the environment. If their releases are not minimised, people, plants and animals will be increasingly exposed, and without a restriction, such levels will be reached that have negative effects on people’s health and the environment. The authorities estimate that around 4.4 million tonnes of PFASs would end up in the environment over the next 30 years unless action is taken.

Peter van der Zandt, ECHA’s Director for Risk Assessment said: “This landmark proposal by the five authorities supports the ambitions of the EU’s Chemicals Strategy and the Zero Pollution action plan. Now, our scientific committees will start their evaluation and opinion forming. While the evaluation of such a broad proposal with thousands of substances, and many uses, will be challenging, we are ready.”

Next steps
ECHA’s scientific committees for Risk Assessment (RAC) and for Socio-Economic Analysis (SEAC) will check that the proposal meets the legal requirements of REACH in their meetings in March 2023. If it does, the committees will begin their scientific evaluation of the proposal. A six-month consultation is planned to start on 22 March 2023.

RAC will form an opinion on whether the proposed restriction is appropriate in reducing the risks to people’s health and the environment, while SEAC’s opinion will be on the socio-economic impacts, i.e. benefits and costs to society, associated with the proposal. Both committees form their opinions based on the information in the restriction proposal and the comments received during consultations. The committees also consider advice from the Enforcement Forum on the enforceability of the proposed restriction. Once the opinions are adopted, they will be sent to the European Commission who, together with the EU Member States, will then decide on the potential restriction.

An online information session will be organised on 5 April 2023 to explain the restriction process and to help those interested in participating in the consultation.