From the Sector

• Excellent project to encourage ingenuity among young students
• Experiment on biodegradability of textiles and nonwovens produces impressive results
• EUR 30,000 in prize money for a total of 209 participating schools in and outside Austria
• Lenzing views supporting these kinds of projects as part of its sustainability mission

Lenzing – The Association of Chemistry Teachers in Austria – known by its German abbreviation, VCÖ – has been holding project competitions that thrill students and take them beyond the traditional syllabus for 30 years. Every two years, it highlights a key topic for ninth- and tenth-graders to explore by conducting special experiments and learning from their observations and conclusions.

This year, the 16th installment of the competition is called, “Achieving a cleaner climate and a circular economy with chemistry”. These topics are also near and dear to the heart of globally active fiber manufacturer Lenzing. That’s why the company promptly announced that it was prepared to support this project competition in several different ways. First, Lenzing made a contribution toward the sponsorship fund totaling EUR 30,000. Second, it initiated a special prize on biodegradability – a topic of growing importance given the huge challenges involved in reducing plastic waste. Finally, Lenzing placed a recognized expert at the students’ disposal to provide assistance and answer questions: Michaela Kogler, Project Manager Nonwovens & Technical Products.

Teaming up with rainworms

Two teams were tasked with biodegrading different fibers – just like those used to produce textiles and nonwovens – with the active participation of worms. Students at BRG solarCity in Linz buried fiber nonwovens, a basic material used in wet wipes and other products, in soil that was populated with numerous rainworms, while students at Vöcklabruck Junior High School for Sports and Integration layered textiles into a vermicomposting bin. Both experiments intended to determine the extent to which certain materials would biodegrade quickly. As it turned out, both projects showed that wood-based fibers, like those that Lenzing manufactures for the textile and nonwoven industry, break down very rapidly into natural constituents that swiftly pass into the soil. In contrast, fossil-based plastics such as polyester or polyethylene cannot be decomposed by worms or bacteria but remain in the soil, sometimes for hundreds of years.

The prizes for this year’s competition were awarded on June 11. The competition attracted entries from no fewer than 209 schools, including 11 from outside Austria. For more information on the projects and the winners, visit www.vcoe.or.at.

Sappi offers Transjet Tacky Industrial, a coated dye sublimation paper for digital transfer printing, specially developed for high-speed inkjet printing on highly elastic textiles. Also new is the uncoated dye sublimation paper Basejet, which has been developed for light designs for high-speed digital printing of fashion and home textiles.

• Transjet Tacky Industrial: Immediate tack effect, high ink transfer, fast ink drying; no ghosting on elastic textiles thanks to reversible tack
• Basejet: Consistent print quality for light designs, fast ink-drying, very fast transfer process

Transjet Tacky Industrial enables highly elastic fabrics to be printed on industrial high-speed machines that work with a higher glycol content, such as printheads from Kyocera. The paper is first printed with the desired image or pattern which is then transferred to the elastic polyester fabric by means of heat and pressure.

Sublimation paper for the textile industry
The new dye sublimation paper offers many benefits for the textile industry, which frequently has to adapt to changing trends. As it is suitable for use on high-speed digital printers, significantly more designs can be printed in the same time than was previously possible on plotters. Thanks to a special heat-reactive coating, the paper adheres to highly stretchable content, while the reversible tack prevents ghosting and textile shrinkage. Transjet Tacky
Industrial has a high ink load capacity so the print can be better accentuated due to strong colour saturation. The design remains clearly visible when the fabric is stretched to its maximum, which is often the case with sportswear in particular.

Basejet specially for light designs
Sappi has also added the Basejet uncoated dye sublimation paper to its portfolio, an additional solution for the digital printing of fashion and home textiles in consistent print quality. The uncoated dye sublimation paper is intended in particular for light designs and cost-driven production processes.

• New air purification and sulfur recovery plant up and running at the Lenzing facility
• Another step closer to meeting sustainability and climate targets
• Self-sufficiency in raw materials further enhanced

Lenzing Group is continuing to make great strides toward achieving carbon neutrality across the Group. The successful completion and commissioning of an air purification and sulfur recovery plant at the Lenzing facility marks another milestone in the Group’s ambitious strategy. Lenzing has invested some EUR 40 mn in this project since construction began in 2019.

Using state-of-the-art technology, the plant will enable carbon emissions to be reduced by 15,000 metric tons at the Lenzing facility. This will also make the group more self-sufficient in securing vital raw materials for processing, which will bolster the site’s competitive standing in terms of sustainability.

“As a result of this investment, Lenzing has made further progress towards implementing its climate targets, while achieving much greater autonomy with regard to one of its core raw materials”, says Christian Skilich, Member of the Managing Board at Lenzing Group.

In 2019, Lenzing set the strategic target of halving its group-wide greenhouse gas emissions per ton of product by 2030. Its goal for 2050 is to achieve climate neutrality.

Todd Zimmerman, a long-time graphic arts executive with a strong track record of growing advanced technology initiatives in print, has joined Electronics For Imaging, Inc. as its new vice president and general manager, Display Graphics.

He comes to EFI™ from Fujifilm® USA, where he spent a decade and a half in a variety of executive roles, most recently as division president and corporate VP of Fujifilm Global Graphic Systems. Prior to joining Fujifilm, Zimmerman worked in sales with Kodak Polychrome Graphics.

Zimmerman assumes his new role at a time when many EFI customers are growing their businesses to meet recovery-fuelled, post-pandemic business needs, especially in key application areas, such as point-of-purchase graphics, tradeshow and event signage, and environmental graphics and décor. As print businesses regain their momentum, Zimmerman will lead EFI’s largest inkjet business segment, a Display Graphics business that is among the world’s largest developers of superwide-format UV LED and dye-sublimation inkjet printers and inks.

• Successful measures to fight against the COVID-19 pandemic with a focus on the safety and health of employees, customers and partners and securing sustainable business development
• Implementation of strategic investment projects and climate targets progressing on schedule – launch of first TENCEL™ branded carbon-zero fibers
• New level of transparency in the textile industry: introduction of blockchain technology
• Target setting: Lenzing raises the bar even higher and sets new sustainability goals

The Lenzing Group presented its Sustainability Report 2020 on April 22, 2021, World Earth Day. Featuring the title “Stand up for future generations”, Lenzing once again emphasized its commitment to taking responsibility beyond the products it makes. The non-financial report, prepared in accordance with the reporting standards of the Global Reporting Initiative (GRI) and the Austrian Sustainability and Diversity Improvement Act (NaDiVeG) and reviewed by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, illustrates how the company is responding to the global challenges of our time.

The 2020 financial year of the Lenzing Group was largely dominated by the COVID-19 pandemic. Lenzing took short-term measures to safeguard its business operations and mitigate the effects of fiber prices and fiber demand which came under increasing pressure. The priority was to protect employees and strengthen long-term partnerships with suppliers and customers. Following the current fight against the coronavirus and its consequences, the company continues to move ahead determinedly to achieve its sustainability targets, also against the backdrop of such a difficult market environment.

With the implementation of its science-based targets, the Lenzing Group actively contributes to mastering the problems caused by climate change. In 2019, Lenzing made a strategic commitment to reducing its greenhouse gas emissions by 50 percent per ton of product by 2030. The overriding target is to be climate-neutral by 2050.*

The launch of the first carbon-zero TENCEL™ fibers certified as CarbonNeutral® products in accordance with The CarbonNeutral Protocol – the leading global framework for carbon neutrality – represents another important milestone from the reporting year. As of June 2021, Lenzing will also market the first VEOCEL™ branded lyocell fibers as certified CarbonNeutral® products.

Promoting the circular economy
Lenzing also sets standards for the entire fiber, textile and clothing industry with respect to the circular economy which is of such crucial importance in climate and resource protection. In order to enhance resource efficiency and offer a solution for the global problem of textile waste, the company developed the REFIBRA™ recycling technology. REFIBRA™ is the only technology in the world enabling the production of new lyocell fibers on a commercial scale from cotton scraps derived from manufacturing cotton clothing as well as from used garments. In this way, an important contribution is made to promoting circularity in the textile industry.*

New level of transparency in the textile industry
In addition to environmental protection, the issue of transparency along the supply chain poses a major challenge to the textile industry. Working in cooperation with TextileGenesis™, Lenzing offers an innovative solution to ensure greater transparency on the basis of blockchain technology. Following several successful pilot projects with renowned fashion brands, this digital platform was ultimately launched in 2020 to enable the traceability of textiles, from the fiber to all stages of production and distribution. Thanks to the innovative Fibercoin™ technology of the TextileGenesis™ platform, Lenzing and its partners are able to issue so-called “blockchain assets” in direct proportion to the physical fiber deliveries of the brands TENCEL™ and LENZING™ ECOVERO™. These digital assets function like a “fingerprint” and thus prevent adulteration.*

Target setting: Lenzing raises the bar even higher
The Lenzing Group operates in line with three strategic principles within the context of its “Naturally positive” sustainability strategy: partnering for change, advancing circularity and greening the value chain.*

*See attached document for more information..

Devan, one of the leading companies in sustainable and functional textile finishes, has been working together with Jeanologia, a global leader in sustainable and efficient finishing technologies for textiles, to reduce further water consumption during the application of Devan’s awarded BI-OME® antimicrobial and R-Vital® skincare range.

With increased attention to climate change and limiting excess water consumption in textile production (whether denim or other textiles), Devan and Jeanologia worked together to evaluate the application of Devan finishes onto garments via the patented e-Flow technology.

e-Flow technology can accomplish a considerable number of finishing effects with the highest quality, a minimal amount of water and zero discharge. The technology uses micronization and nebulization to substitute traditional abrasion process and deliver performance chemistry using nano-bubbles instead of water. It reduces the cost of application, saves the amount of water used and ensures that the correct amount of chemistry stays in the garment and not in the water. e-Flow is the perfect fit for every industrial washing machine. This allows mills and brands to apply Devan’s technologies in a more sustainable way than using traditional application equipment, even for smaller production runs and direct onto garments.

“With the global textile production using 4% of the global freshwater withdrawal, here at Devan we are continuously working on more sustainable solutions”, says Dr. Vanessa Daelman, CTO at Devan. “Next to this, we of course highly value sustainable application methods from Jeanologia, like e-Flow, in order to reduce the excess water usage during textile application. We are delighted that we could work together with Jeanologia and establish that Devan technologies can be easily applied via these technologies onto garments or fabrics like denim and with full retention of functionality. This application method also allows post garment treatment of our finishes, for example an antimicrobial treatment onto already finished garments, which will be increasingly important in a more circular textile world where re-use plays an important role”, Dr. Daelman concludes.

Kornit Digitala announced Valencia, Spain-based Rafa’s Textiles has acquired a third Kornit Avalanche HD6 system for single-step, on-demand direct-to-garment (DTG) digital production, spurred by business growth resulting from increased e-commerce engagement in the past year.

Rafa’s Textiles personalizes t-shirts and all kinds of clothing with screen printing, direct (digital) printing, silkscreen transfer, sublimation, and embroidery, serving European-based B2B clients who sell via web stores, both integrated with Amazon and independently. There are no colour limitations, and handfeel and durability are retail-quality. On a typical day, they will handle 200-300 print-on-demand orders, though those numbers spike with key holidays; this past Christmas, for example, saw a peak of 1,300 orders in a single day. Regardless of volume, with digital production capabilities in house, these orders are printed individually within 24 hours and shipped directly to all customers.

For Rafa’s Textiles, implementing Kornit’s digital production technology was simply the best means to meeting the challenges and capitalizing on new opportunities of the e-commerce age. Sergio attributes his business’s success despite recent market disruptions to their focus on e-commerce, which aligns with buyers’ increased preference for web-based purchasing.

Lectra announces its plan to acquire the entire capital and voting rights of US-based Gerber Technology. A key Industry 4.0 player in the fashion, automotive and furniture industries, Lectra designs smart industrial solutions – software, equipment, data and services – that help brands, manufacturers and retailers develop, produce and market their products.

The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations. After the French work council of Lectra is consulted and the binding documentation is signed, completion of the acquisition shall remain subject to merger control clearance and other customary conditions and shall be submitted to Lectra shareholders for approval.

The proposed combination would occur at an opportune time for both companies and their customers. The current uncertain economic climate and unprecedented challenges that fashion, automotive and furniture companies are facing due to the COVID-19 pandemic make it more important than ever for them to transform, digitalize and optimize their operations.

For over 50 years, Gerber Technology has used its proprietary technologies and deep domain expertise to provide integrated software and automated hardware solutions to companies around the world, including over 100 Fortune 500 companies in 134 countries.

The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions. Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.

Consolidating the two companies’ research and development capabilities will enable the combined company to accelerate development of Industry 4.0 technologies and help its expanded customer base seize the full potential of these innovations.
Integrating the technology of the two companies will endow them with the resources to anticipate and address rapidly changing market conditions.

Key transaction terms

Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of 175 million euros – through a combination of cash and debt – plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder. This would represent a total amount of about 300 million euros based on Lectra’s closing share price on February 5, 2021. No contingent consideration is contemplated.

Gerber Technology’s revenues was 165 million euros in 2020.

Thanks to the strong value creation deriving from significant synergies, Lectra expects the transaction to be accretive for shareholders from 2022.

Upon closing, Daniel Harari would own c. 14.6% of the Lectra shares and AIPCF VI LG would own c. 13.3%.

Lectra’s Board of Directors would welcome a director representing AIPCF VI LG.

Daniel Harari would continue to be the Chairman and Chief Executive Officer of Lectra. Gerber Technology Chief Executive Officer, Mohit Uberoi, would assume special advisor to Daniel Harari role until end-2021.

Lectra’s shareholders would be invited to vote on the issuance of the 5 million new Lectra shares reserved to AIPCF VI LG at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021. A report containing additional information will be made available to the shareholders prior to the Extraordinary Shareholders’ Meeting.

Lazard is acting as exclusive financial advisor to Lectra, and Latham & Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes & Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

2020 results, update on the 2020-2022 strategic roadmap and guidance for the coming years will be disclosed on February 10, 2021.

Lectra management will discuss the transaction, provide forward-looking guidance for the combined company upon closing of the transaction and answer questions from the financial community during the February 11, 2021 webcast Analyst Conference meeting in French starting at 8:30 am (CET - Paris).

With the industrial use of solar energy, Lenzing sets new standards regarding decarbonization in the fiber industry.

The Lenzing Group plans Upper Austria’s largest ground-mounted photovoltaic plant on an area of around 55,000 m². The groundbreaking ceremony is scheduled to take place in summer 2021. After the expected commissioning in the second half of 2021, the plant's output will amount to 5.5 MWpeak. With approximately 16,000 modules, the plant will generate nearly 5,500 megawatt hours per year. This corresponds to the average annual electricity demand of more than 1,700 households and is unique in Upper Austria on this scale.

The photovoltaic plant is an important symbolic milestone for Lenzing on its way to becoming a CO2-neutral manufacturing site. This project is part of Lenzing’s global energy concept, which aims to provide electricity from 100 percent renewable sources in order to reduce CO2 intensity by 50 percent already in 2030 and to be globally climate neutral in 2050.

"The great challenges of our time need answers. As a leading company in innovation and sustainability, we are proactively contributing to the achievement of climate targets and setting new standards for our industry," explains Stefan Doboczky, CEO of the Lenzing Group. “In addition to ongoing major investments in CO2 neutral sites such as Thailand and Brazil, innovative projects at existing sites are bringing us one step closer to climate neutrality.”

Tata Communications, a global digital ecosystem enabler, has been recognised by global environmental non-profit organisation, Carbon Disclosure Project (CDP) with the distinguished ‘A-’ leadership score for implementing current best practices in sustainability for climate change. Tata Communications score is higher than the global average of ‘C’ and higher than the Asia region average of ‘D’. The Company scores the highest global score for playing a leading role in Climate Change governance, value chain management, energy efficiency, risk and opportunity disclosures in CDP 2020 reporting.

Tata Communications is among the top 34% companies globally to have received the leadership score for best practices out of 9,600+ companies that reported environmental disclosures this year. The scores are attributed basis a comprehensive peer benchmarking and sustainability performance.

The company made some strategic shifts in implementing several energy efficiency measures and this recognition reaffirms its focus on sustainability. In fiscal 2020, Tata Communications sourced approximately 15 million units of renewable energy and implemented emission reduction initiatives resulting in energy savings to the tune of 0.8 million units.

Tata Communications Sustainability strategy is based on the three facets of environment, social and governance (ESG) principles. The Company’s objective is to drive value creation for its stakeholders and drive sustainable business growth by managing risks and embracing opportunities, implementing robust governance practices and optimising the economic, environmental and social performance.