From the Sector

KARL MAYER has already produced a wide range of electrically conductive warp-knitted items for a wide variety of applications in the TEXTILE-CIRCUIT division of its TEXTILE MAKERSPACE, including a sensor shirt, a gesture control system and a conductive charging station. In order to drive the topic of wearables forward, the textile machine manufacturer has signed a cooperation agreement with the Grabher Group and delivered an MJ 52/1-S to the specialist for high-tech textiles in Lustenau. Managing Director Günter Grabher officially inaugurated the key machine for project work in the smart textiles sector in May 2023.

The machine is involved in various research projects, but is also available for new projects and tasks. The smart textiles competence team at KARL MAYER and Grabher is looking forward to supporting the ideas and work of interested parties also outside the research network with its know-how and the possibilities of the MJ 52/1-S.

The MJ 52/1 S is also an extremely flexible project machine. The 138″ model in gauge E 28 produces a wide range of warp-knitted fabrics and incorporates conductive material directly into the textile surface - exactly where it is needed and with the structure that is required. The basis for the tailor-made fiber placement is KARL MAYER's string bar technology. The system for controlling the pattern guide bars ensures a fast, established textile production process and a high degree of pattern freedom.

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step. Overall, a share of sales amounting to around € 179.6 million after nine months in 2023 (9M 2022: € 269.0 million) is therefore under review. The CF sales share corresponded to 21.9% of SGL Carbon's consolidated sales after nine months in 2023 (9M 2022: 31.5%). Adjusted EBITDA of the Business Unit excluding the result from joint ventures amounted to minus € 10,9 million after nine months in 2023 (9M 2022: € 27,9 million). Despite the operating loss of CF after nine months in 2023, SGL Carbon maintains its guidance for fiscal year 2023. This shows the positive development of the three other business units and the resilience of SGL Carbon's business model.

Carbon Fibers manufactures textile, acrylic and carbon fibers as well as composite materials at seven locations in Europe and North America. Following the temporary drop in demand for carbon fibers from the important wind industry market, the Business Unit's sales and earnings fell significantly in the course of fiscal year 2023. Due to the importance of the wind industry for the European Green Deal, SGL Carbon and many experts assumed that the wind industry recovers quickly. Unfortunately, this is currently not the case. Even if demand picks up, the company assumes that Carbon Fibers will need additional resources to remain competitive in the international market environment and to exploit market opportunities in the best possible way. Against this background, SGL Carbon is reviewing all possibilities to support a positive further development of the Carbon Fibers Business Unit.

• Revenues: 477.6 million euros (-6%)
• EBITDA before non-recurring items: 79.0 million euros (-15%)
• Net income: 32.6 million euros (-26%)
• Free cash flow before non-recurring items: 45.3 million euros
• Dividend: €0.36 per share

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2023. Audit procedures have been performed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 3.9 million euros (-3%) and 1.7 million euros (-8%) respectively in Q4, and by 11.2 million euros (-2%) and 4.8 million euros (-6%) respectively in the year, at actual exchange rates compared to like-for-like figures.

OUTLOOK
While the 2023 full-year results were affected by the adverse environment, they also attest to the substantial improvement in the fundamentals of the Group's business model, which will have a positive impact on 2024 results. Persistent macroeconomic and geopolitical uncertainties could nevertheless continue to weigh on investment decisions by the Group's customers.

While the most recent indicators seem to suggest that the situation is unlikely to deteriorate further, the timing and magnitude of a rebound in new system orders remain uncertain.

Outlook for 2024
To facilitate analysis, the accounts of Lectra excluding the Launchmetrics acquisition ("Lectra 2023 Scope") will be analysed separately from the Launchmetrics accounts in 2024.

The Group has based its 2024 objectives on the exchange rates in effect on December 29, 2023, in particular $1.10/€1. When converting 2023 results using the exchange rates retained for 2024, 2023 revenues are mechanically reduced by 4.7 million euros (to 472.9 million euros) and 2023 EBITDA before non-recurring items is reduced by 2.2 million euros (to 76.8 million euros). Thus, for the Lectra 2023 Scope, the comparisons between 2024 and 2023 printed below are based on constant exchange rates.

At this early stage of 2024, continuing low visibility regarding orders and revenues from new systems makes it impossible to predict the actual timing and scale of the future rebound in this area. On the other hand, visibility is high for recurring revenues, which accounted for 68% of total revenues in 2023 and will continue to grow in 2024.

In light of the above, Lectra has set as its objective for 2024, for the Lectra 2023 Scope, to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The low end of the revenues range is based on the absence of a rebound in new systems orders, which would remain stable in 2024 relative to 2023, with a 6% decline in revenues from perpetual software licenses, equipment and accompanying software and non-recurring services, as the order backlog was lower on December 31, 2023 than a year before.

The high end of the revenues range reflects a gradual rebound in new systems orders, which at year-end 2024 would be back to year-end 2022 level.
 
In addition, Launchmetrics revenues (for the consolidation period from January 23 to December 31) are projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15% (assuming an exchange rate of $1.10/€1).

• Limited-edition capsule features apparel and footwear for men and women inspired by Bing Crosby’s popular Clambake event and the fashion surrounding it

In 1937 the entertainer Bing Crosby started the popular Crosby Clambake, an annual event that brought musicians, actors, celebrities, and professional golfers together for a friendly competition around a sport they all loved. Today, adidas and Malbon Golf are introducing a special capsule of product – The Crosby Collection – inspired by those early Clambakes and that camaraderie, spirit and fashion from an era that set the stage for what the golf landscape looks like today.

Taking design cues from the fashion that adorned the early days of Bing’s notorious Clambakes, adidas and Malbon Golf put together a range of product for men and women with modern takes on the silhouettes that defined an era. For men, this includes button-down polos, pleated trousers and shorts, crewnecks, a lightweight sport coat and an iconic cardigan inspired by one of the posters from one of the early Clambakes. For women, the capsule includes a color-blocked dress with an argyle print, polos with slightly longer and wider sleeves to go with a boxier cut, and a form-fitting culotte pant.

In addition to the key pieces in the collection, adidas and Malbon will include a checkered anorak, a T-shirt in two colorways featuring the iconic clam decanters that were gifted to all amateur participants in Bing’s Clambakes, and a 5-panel hat. adidas will also include two limited-edition footwear offerings as part of the collection with a specially designed Stan Smith Golf model as well as the new MC87 that mixes performance with style.

The Dutch company Knitwear Lab helps visions become reality. The creative think tank offers capacities in the areas of R&D, design, knitwear development and production of prototypes and small quantities and has thus implemented a wide range of projects in recent years. The objects range from medical products and high-tech sportswear to smart textiles with integrated sensors. Sustainability activities are also part of the repertoire, such as the production of yarns from recycled waste.

Knitwear Lab operates at two locations for its diverse tasks: Almere in the Netherlandsis available for development work. In Istanbul, there is a branch for production. Both Knitwear Lab sites each have five STOLL flat knitting machines, including models from the modern ADF range. Prototypes are produced in Almere and there is small-scale production. The production plant in Istanbul specializes in the manufacture of high-quality knitwear in small quantities. STOLL is also involved in the creative processes. For the industrial development of knitwear, Knitwear Lab offers Virtual Knitting, a revolutionary method that combines virtual and physical elements of pattern development and knitwear production to reduce waste and pre-production steps. Customers can use Virtual Knitting to create realistic, producible collections, simplify their design iteration processes and take advantage of the wide range of real-life colorways. The basis for this is comprehensive knitwear expertise, the latest 3D software and the CREATE PLUS patterning software, which was developed by STOLL together with KM.ON.

"The 3D visualization of CREATE simplifies communication with the customer considerably. We use this function every day," says Annika Klaas, Senior Knitwear Programmer. She personally appreciates the uncomplicated grading and exchange of stitch dimensions and the much faster and more efficient work with Dimensioned Shapes that this makes possible. This helps her in her day-to-day work. "We often have requests to realize the same product in different yarns, which now works much faster," says the programmer. Further simplifications would include minor optimizations in terms of the efficiency and user-friendliness of programming and additional import and export options for shapes. Discussions on implementation are already underway.

The kick-off meeting for the "Trends and Design Factors for Hydrogen Pressure Vessels" project, recently held at AZL Aachen GmbH, was a successful event, bringing together more than 37 experts in the field of composite technologies. This event laid a solid foundation for the Joint Partner Project, which currently comprises a consortium of 20 renowned companies from across the composite pressure vessel value chain: Ascend Performance Materials, C evotec GmbH, Chongqing Polycomp International Corp. (CPIC), Conbility GmbH, Elkamet Kunststofftechnik GmbH, F.A. Kümpers GmbH & Co. KG, f loteks plastik sanayi ticaret a.s., Formosa Plastics Corporation, Heraeus Noblelight GmbH, Huntsman Advanced Materials, Kaneka Belgium NV, Laserline GmbH, Mitsui Chemicals Europe GmbH, Plastik Omnium, Rassini Europe GmbH, Robert Bosch GmbH, Swancor Holding Co. Ltd. Ltd., TECNALIA, Toyota Motor Europe NV/SA, Tünkers do Brasil Ltda.

The project follows AZL´s well proven approach of a Joint Partner Project, aiming to provide technology and market insights as well as benchmarking of different material and production setups in combination with connecting experts along the value chain.

The kick-off meeting not only served as a platform to foster new contacts and get informed about the expertise and interests of the consortium members in the field of hydrogen pressure vessels, but also laid the groundwork for steering the focus of the upc oming project's ambitious phases. As a basis for the interactive discussion session, AZL outlined the background, motivation and detailed work plan. The central issues of the dialogue were the primary objectives, the most pressing challenges, the contribut ion to competitiveness, and
the priorities that would best meet the expectations of the project partners.

Discussions covered regulatory issues, the evolving value chain and the supply and properties of key materials such as carbon and glass fibres and resins. The consortium defined investigations into different manufacturing technologies, assessing their matu rity and potential benefits. Design layouts, including liners, boss designs and winding patterns, were thoroughly considered, taking into account their implications for mobile and stationary storage. The group is also interested in cost effective testing m ethods and certification processes, as well as the prospects for recycling into continuous fibres and the use of sustainable materials. Insight was requested into future demand for hydrogen tanks, OEM needs and strategies, and technological developments to produce more economical tanks.

The meeting highlighted the importance of CAE designs for fibre patterns, software suitability and the application dependent use of thermoset and thermoplastic designs.

The first report meeting will also set the stage of the next project phase, which will be the creation of reference designs by AZL's engineering team. These designs will cover a range of pressure vessel configurations using a variety of materials and production concepts. The aim is to develop models that not only re flect current technological capabilities, but also provide deep insight into the cost analysis of different production technologies, their CO₂ footprint, recycling aspects and scalability.

AZL's project remains open to additional participants. Companies interested in joining this initiative are invited to contact Philipp Fröhlig.

Mahlo GmbH + Co. KG will present its systems and solutions for efficient and high-quality textile production and finishing together with Shanghai Kuantex at ITMA Asia (November 19 and 23). The focus will be on the machine manufacturer's new straightening concept, the Orthopac RXVMC.

"In the new straightening concept, special attention was paid to the straightening mechanics and their interaction with the analysis electronics of the probe system," explains Sales Manager Thomas Höpfl. The control concept is also new. A probe group at the leveler infeed detects distortions even before they reach the correction rolls. In this way, the rolls are brought directly into position and the fabric is corrected from the very first centimeter. A scanner group at the outfeed also detects possible residual distortion, which is corrected at the second straightening module. This enables an even more precise and faster response when it comes to reacting to rapidly changing distortions. The Orthopac RXVMC therefore shows its full strength when straightening knitwear and fabrics sensitive to distortion.

Also contributing to high-quality textile production and finishing is the Famacont PMC for controlling weft and stitch course density, which will also be on show at ITMA Asia. The Famacont PMC-15 uses a sensor to measure the yarn or stitch density and compares it with the target value stored in the recipe data management system. The detected deviation of the yarn density from the target value is used to fully automatically regulate the leading during the needling process on the stenter frame. Interested parties can have the mode of operation explained to them at the Mahlo booth with the help of a demo tower and their own or provided fabric samples.

Another major topic remains Industry 4.0, because the best measured data is of no use if it cannot be utilized. Mahlo has continuously developed its digital environment mSmart. "Our systems generate data that the customer can use immediately to regulate goods on-line. At the same time, all measured values are backed up in our data management system mLog enhanced and can be retrieved at any time. With this historical data, processes can be optimized and weak points in the process can be minimized," explains Sales Manager Thomas Höpfl.

• Revenue of EUR 1.87 bn and EBITDA of EUR 219.1 mn in the first three quarters of 2023
• Positive free cash flow of EUR 27.3 mn in the third quarter
• Implementation of performance program focusing on positive free cash flow, strengthened sales and margin growth and sustainable cost excellence
• Modernization and conversion of Indonesian site successfully completed – EU Ecolabel received

The anticipated recovery in markets relevant for the Lenzing Group has to date failed to materialize. The continued sharp increase in raw material and energy costs on the one hand and very subdued demand on the other had a negative impact on Lenzing’s business trends as well as on industry as a whole during the reporting period.

Revenue in the first three quarters of 2023 decreased by 5.3 percent year-on-year to EUR 1.87 bn. This reduction was primarily due to lower fiber revenues, while pulp revenues were up. The earnings trend was mainly influenced by the market environment. As a consequence, earnings before interest, tax, depreciation and amortization (EBITDA) in the reporting period decreased by 16.7 percent year-on-year to EUR 219.1 mn. The net result after tax amounted to minus EUR 96.7 mn (compared with EUR 74.9 mn in the first three quarters of 2022), while earnings per share amounted to minus EUR 4.90 (compared with EUR 2.16 in the first three quarters of 2022).

Outlook
According to the IMF, a full return of the global economy to pre-pandemic growth rates appears increasingly out of reach in the coming quarters. In addition to the consequences of the pandemic and the ongoing war in Ukraine, growth is also being influenced by restrictive monetary policy and extreme weather events. The consequences of the renewed military confrontation in the Middle East are not yet foreseeable. Overall, the IMF warns of greater risks to global financial stability, and expects the growth rate to decrease to 3 percent this year and to 2.9 percent next year.

The currency environment is expected to remain volatile in the regions of relevance to Lenzing.

The general market environment is continuing to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing.

In the trend-setting market for cotton, the current 2023/24 crop season is emerging as a further 1.7 mn tonnes of inventory build-up, following 1.8 mn tonnes of inventory build-up in the previous season.

Earnings visibility remains severely limited overall.

Lenzing is fully on track with the implementation of the reorganization and cost reduction program and on this basis is implementing a comprehensive performance program focused on positive free cash flow, strengthened sales and margin growth as well as sustainable cost excellence. The overarching goal is to position Lenzing even more strongly and to further increase its crisis resilience.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the trans-formation from a linear to a circular economy model.

The successful implementation of the key projects in Thailand and Brazil as well as the investment projects in China and Indonesia will further strengthen Lenzing’s positioning in this respect.

Taking the aforementioned factors into consideration, the Lenzing Group continues to expect that EBITDA for the 2023 financial year will lie in a range between EUR 270 mn and EUR 330 mn.

Digital fashion outlet Otrium announces the launch of a dedicated garment refurbishment and repair programme for damaged returns following a successful pilot scheme. The initiative is being run in partnership with Bleckmann, experts in supply chain management for fashion and lifestyle brands. Working with Bleckmann’s team of circular fashion experts from The Renewal Workshop, Otrium is taking the next step in its strategic journey to help reduce the number of that might ultimately end up in landfills or destroyed.
 
Most of the returns that Otrium currently receives can be easily restored and put back on sale. However, in rare cases, returned items are damaged. “Preventing waste is an important part of Otrium’s DNA, and thanks to our partnership with Bleckmann and their Renewal Workshop team, we can now repair the majority of damaged returns and put them back into circulation,” said Kevin Carolan, Director of Logistics at Otrium. “We are happy that we can use our position in the fashion supply chain to create lasting change and accelerate towards our mission of reducing the volume of garments that go to landfill.”

Since 2020, Otrium is exploring refurbishment and repairs with their third-party logistics provider Bleckmann. In April 2023, both partners started a three-month pilot at Bleckmann’s facility in Almelo, the Netherlands, to expand the programme with a broader range of repairs and optimised processes through data use. During the pilot, the Renewal Workshop team at Bleckmann refurbished more than 1,000 returned garments, shoes and accessories for Otrium each month.

“With hundreds of high-end labels on the platform, we needed an efficient solution tailored to the needs of a wide range of products – from shoes and coats to bags,” explained Marlot Kiveron, Head of Sustainability at Otrium. “The Renewal Workshop team worked closely with us to develop a streamlined and scalable process that could grow in line with our ambitions, delivering like-new repairs at the speed of e-commerce. Their combination of purpose, professionalism, agility and expertise makes them the ideal partner for this kind of project.”
 
Bleckmann’s integrated data capabilities were also crucial to the success of the partnership. “Data collection and analysis can be vital in demonstrating the commercial viability of sustainability initiatives,” said Tamara Zwart, Director of Renewal at Bleckmann. “Using our advanced stock tracking systems, we determined that 70% of the renewed Otrium stock had been sold within seven weeks. We’re all delighted with the results!”
Furthermore, carbon-tracking software Vaayu calculated that on average, a refurbished return sold on Otrium avoids 2.760kg of carbon emissions and 69g of waste proofing that this programme can have a positive impact on both: the planet and the business.

Having established the business case, the team decided to expand the initiative beyond the pilot phase. “This project is a milestone in our sustainability journey,” concluded Marlot. “It’s a key part of our ongoing commitment to finding more ways to reduce our environmental impact while helping to ensure that more clothes get worn. By the end of 2023, we aim to repair at least 25,000 damaged garments. Together with Bleckmann and their renewal experts, we’re well on our way to proving that this circular business model can be a valuable part of our future growth.”

•    First production supercar created with Hypetex coloured carbon fibre
•    Paint-replacement technology reduces weight to enhance performance

British car manufacturer Briggs Automotive Company (BAC) has created a unique Hypetex coloured carbon fibre version of its Mono R, reducing the weight by removing the need for paint.  

The original BAC Mono R was created to be lighter and more powerful than the standard model, with 343bhp and 555kg total weight, equating to a power-to-weight ratio of 618bhp-per-tonne. By removing the need for paint coatings in this version, the net weight of the exterior is reduced compared to a painted shell, resulting in a further improved overall performance.

The car’s body was created using Hypetex’s titanium carbon fibre twill, and finished with a crystalized lacquer, offering a unique aesthetic finish. The ultra-lightweight supercar can accelerate from zero to 60mph in less than 2.5 seconds.  

Hypetex’s paint-replacement technology retains the visible weave, allowing for a bold design and a choice of colours without technical compromises, perfectly aligning with BAC’s initiatives to maximise performance whilst creating bespoke supercars. Paint generally adds 138 grams per metre squared, whereas Hypetex adds just 17 grams for the same area, offering an 8x weight saving.
This bespoke version of BAC’s single-seater Mono R was subject to BAC’s renowned BAC Bespoke programme, which ensures that no two Monos are the same. The client, a US-based collector, worked with BAC’s design team to design the car to their personal taste.   

Born out of Formula 1 technology, Hypetex offers manufacturers sustainable aesthetic materials with technical and efficiency benefits. This collaboration is an all-British success story, with the Hypetex carbon fibre body built by Formaplex, a leading UK-based manufacturing company who manufacture lightweight engineered solutions for top tier customers in Automotive, Aerospace and Defence markets. BAC’s supply chain is 95% UK-based.  

Hypetex continues to expand its growing portfolio of the use of coloured carbon fibre to add personalisation to the automotive field, with its material recently featured on the 2024 Ford Mustang Dark Horse.