From the Sector

In line with the new Level Up corporate strategy, which focuses on innovation and a future-fit product portfolio among other things, Autoneum has further expanded its research and development activities in 2024 with a particular focus on New Mobility. In addition to establishing a specialized team to accelerate the development and market readiness of novel products and technologies for electric vehicles, the Company has complemented its global innovation network with a new Research & Technology (R&T) Center in Shanghai, China.

Innovation is and always has been an integral part of Autoneum’s corporate strategy and thus a key factor for business success. The Company’s innovation activities are also an important aspect of its vision: to be the global leader for innovative and sustainable solutions bringing comfort to every vehicle. Against the backdrop of the rapidly advancing electrification of mobility and Autoneum’s strategic focus on further expanding its presence in the Asian growth markets, the expansion activities of the company-wide innovation network this year concentrated on two key areas in particular: New Mobility and presence in China.

Responding to the increasing demand for new components for electric vehicles, Autoneum has formed a specialized team dedicated exclusively to New Mobility to further strengthen its position in this growing market segment. The New Mobility team was established in fall 2023 and has been completed over the past twelve months with members from different departments. It unites a broad set of skills from various fields of expertise such as product innovation, product development and industrialization, sales and business development. The team places a particular focus on accelerating the development and time to market of new products and technologies specifically for the fast-evolving battery systems and architectures of electric vehicles. It also acts as a catalyst for innovation pro-jects and strategic partnerships. The New Mobility experts work in close collaboration with the various departments across the organization and are based at Autoneum’s Swiss headquarters in Win-terthur, at the German locations in Gundernhausen and Munich and in Shanghai, China.

Shanghai is also the location of Autoneum’s third R&T Center worldwide, which was opened in China this summer to enhance the Company’s competitiveness in Asia and cater to the development and innovation needs in this key strategic market. The new center aims to intensify and accelerate the development and production of innovative components and materials, especially regarding e-mobility. The establishment of an R&T team in China allows Autoneum to develop products in a timely manner to respond to the dynamic market conditions and the rapidly evolving requirements of Chinese vehicle manufactures. In terms of material development, the center will support the wider organization in the further development of sustainable materials, especially polyester. In addition, it will promote the introduction of Autoneum’s environmentally friendly products such as the Company’s monomaterial carpet systems featuring Autoneum’s innovative and latex-free alternative backcoating (ABC) process to the Chinese market. Moreover, the R&T Center in Shanghai will also serve as a valuable point of contact with the 14 production facilities of the Jiangsu Huanyu Group, whose acquisition of a majority stake of 70 percent by Autoneum was recently announced and is expected to be closed in March 2025 (see media release of November 19, 2024). While the plants in China will benefit from the local R&T team’s expertise in the company’s technologies, the existing broad customer base of Jiangsu Huanyu Group will support Autoneum in better understanding and serving the innovation needs of Chinese vehicle manufacturers.

The new R&T Center in Shanghai complements the primary R&T Center in Winterthur, Switzerland, which supports the global network with its expertise and a vast array of services in the areas of pre-development as well as acoustic and thermal benchmarking, simulation and testing, and the center in Bocholt, Germany. The latter was integrated into Autoneum’s innovation network following the acquisition of Borgers Automotive last year and has since established itself as the Company’s competence center for trunk and trim components. Including the new center in China, a total of approximately eighty R&T employees – including engineers, chemists, physicists and product designers – are continuously working on new ideas aimed at the next technological breakthrough in acoustic and thermal management and shielding technologies.

The Top Employers Institute has recognized Autoneum as a Top Employer 2024 in Switzerland. Being certified as a Top Employer showcases an organization’s dedication to a better world of work and exhibits this through their policies and people practices. This year, the automotive supplier's Human Resources (HR) department at its headquarters in Winterthur, Switzerland, took part in the comprehensive survey of the Top Employers Insti-tute for the first time and achieved an outstanding result.

The institute has been auditing companies worldwide for over 30 years. The certification program, which is based on an international standard, makes HR measures and their impact on employee conditions objectively measurable. To achieve this, the Top Employers Institute certifies organizations based on the participation and the results of their HR Best Practices Survey. This survey covers six HR domains consisting of 20 topics including People Strategy, Work Environment, Talent Acquisition, Learning, Diversity, Equity & Inclusion, Wellbeing and more.

The program has certified and recognized over 2 300 Top Employers in 121 countries/regions across five continents.

The Dibella sales team continues to grow. Since the first of May, Thomas Kmoch has been supporting customers from South Tyrol, Austria and Switzerland.

Dibella welcomes Thomas Kmoch, an experienced member of staff, to the team. Due to his previous twenty years as an authorised signatory and sales director at Damino GmbH, the sales specialist brings with him in-depth knowldge of flat linen for contract business and comprehensive industry expertise.

At Dibella, Thomas Kmoch is primarily responsible for supporting existing customers and building new customer relationships in South Tyrol, Austria and Switzerland. The company is thus further strengthening ist focus on these three regions.

RadiciGroup announced the appointment of Stefano Pigozzi to the Board of Directors of Radici Partecipazioni SpA, the parent company overseeing all the Group's business activities in the chemicals, engineering polymers and advanced textile solutions sectors.
 
A professional with proven experience in the chemical industry, Mr. Pigozzi will complement the Board with his strategic vision acquired in international organizations.
 
Stefano Pigozzi graduated from the University of St. Gallen in Switzerland with a degree in Business Administration and started his work experience in the finance division of BASF in the late 1980s. Since then, chemistry has remained at the centre of his career: over the years, he has held marketing and sales positions of increasing responsibility in various business sectors (plastics and inorganics), moving up to more strategic and managerial roles within BASF, including president of the Monomers Division and, most recently, head of the Group Global Purchasing Division at the Ludwigshafen headquarters.
 
During his more than 30-year career at BASF, Mr. Pigozzi has consistently demonstrated his leadership capability, his financial analysis skills and his dedication to corporate business success. He has also contributed significantly to the positioning of BASF as a global leader in the chemical industry.
 
Mr. Pigozzi’s appointment to the Board of Directors of Radici Partecipazioni is aimed at strengthening RadiciGroup's presence in the market and helping to guide the company towards new goals.

• Bernhard Jucker will not stand for re-election as Chairman of the Board of Directors at the Annual General Meeting on April 17, 2024 due to reaching the age limit
• Thomas Oetterli will be proposed as the new Chairman of the Board of Directors at the 2024 Annual General Meeting and will continue in his role as CEO of the Rieter Group
• Roger Baillod will be named as Lead Independent Director
• Jennifer Maag will be proposed for election as a new member of the Board of Directors

Bernhard Jucker will not stand for re-election as Chairman of the Board of Directors at the next Annual General Meeting on April 17, 2024, having reached the age limit. The Board of Directors would like to thank Bernhard Jucker for his outstanding and valuable commitment. During his term of office, he has successfully developed the company through acquisitions and optimization of the sites.

The Board of Directors of Rieter Holding AG proposes to the shareholders the election of Thomas Oetterli as the new Chairman of the Board. He will continue in his role as CEO of the Rieter Group. The dual mandate is an interim measure to ensure the sustainable implementation of the “Next Level” performance program. The Board of Directors is convinced that Thomas Oetterli has the qualifications and the ideal background experience as the future Chairman of Rieter Holding Ltd.

Roger Baillod, member of the Board of Directors since 2016 and Vice Chairman since 2022, will be named as Lead Independent Director. Together with the Board of Directors, Roger Baillod will use his many years of experience to continue to ensure good corporate governance.

Jennifer Maag will be proposed for election to the Board of Directors at the Annual General Meeting on April 17, 2024. Ms. Maag, native-born in the USA, has Swiss and German citizenship and holds a Bachelor’s degree in Economics from the University of California, Berkeley (USA). Ms. Maag is currently a member of the Board of Directors of Kardex Holding AG, Zurich, Weidmann Holding AG, Rapperswil, VT5 Acquisition Company AG, Pfäffikon (SZ) and Nova Property Fund Management AG, Pfäffikon (SZ). In 1999, Jennifer Maag founded Capital Concepts International AG, Zurich (Switzerland), a mergers and acquisitions consulting firm, where she remains as managing partner. From 1996 to 1999, she was a senior manager in the corporate finance department of KPMG AG in Zurich. She previously worked in auditing at Deloitte in Munich (Germany) and Zurich, during which time she completed her education as a Certified Public Accountant (CPA).

HeiQ announces the appointment of Robert van de Kerkhof as Non-Executive Director, with effect from 1 January 2024 to the board of HeiQ plc and as Chairman of the Environmental, Occupation, Health & Safety and Sustainability Committee. Robert will also be appointed to the board of HeiQ AeoniQ Holding AG (in Switzerland), a subsidiary of HeiQ plc.

Robert van de Kerkhof has over 30 years of experience in general management and sustainability leadership and extensive knowledge of the textiles industry, including cellulosic fiber technology. He founded PEPPER-i2, an advisory company specializing in sustainability and circularity. Robert also serves as the Chief Sustainability Officer and as a Board Member of Lenzing AG, a position he has held since 2014. Robert will be leaving Lenzing and its Board on the 31st. December 2023.

Robert joins HEIQ AeoniQ™ with the firm belief that the novel HEIQ AeoniQ™ man-made cellulosic fibers (MMCF) are one of the most promising solutions to transform the textile industry, now the second-most polluting in the world, into one of the most sustainable, by rendering fossil fuel-based fibers like polyester obsolete.

Robert has also held senior positions as President of the Austrian Fiber Institute, President and Board Member of CIRFS – the European Man-made Fibres Association, and Chairman of the ReHubs Business Council for Euratex, which is the voice of the European Apparel and Textile Industry.

New appointments to the Management Board of Freudenberg Performance Materials come into effect on January 1, 2024: Dr. Andreas Raps succeeds Dr. Frank Heislitz as Chief Executive Officer (CEO), and Marco Altherr takes over from Thomas Herr as Chief Financial Officer (CFO). From January 1, 2024, the Management Board of Freudenberg Performance Materials will therefore consist of: Dr. Andreas Raps (CEO), Marco Altherr (CFO) and John McNabb (CTO). McNabb has been CTO since 2018. Dr. Frank Heislitz and Thomas Herr become members of the Freudenberg Group Board of Management on January 1, 2024.

Dr. Andreas Raps has been a member of the Freudenberg SE Executive Council since 2020 and CEO of EagleBurgmann, a joint venture between the Japanese EKK Group and the Freudenberg Group, since 2016. He previously held several executive management positions at Freudenberg Sealing Technologies from 2004, most recently as CEO of the global Special Sealing Division with 17 manufacturing sites worldwide. Before joining the Freudenberg Group, Raps worked for various management consulting companies in Boston, USA, Munich, Germany, and Zurich, Switzerland. He holds an MBA from the University of Passau. Alongside his job as a consultant, he obtained a PhD with a thesis on strategy implementation in Business Administration. 

Marco Altherr has been CFO of Vibracoustic SE, a Freudenberg Group company, since 2020. He held various senior management positions at Freudenberg & Co. KG, the technology group’s holding company, from 2015 to 2020, most recently as Head of Corporate Controlling and Accounting. Prior to joining Freudenberg, he served in several management roles at Manroland AG, Heidelberger Druckmaschinen, Boehringer Ingelheim and Arthur Andersen. He holds a degree in business administration specializing in controlling and financing from Lahr University.

Rieter’s cumulative sales in the first nine months of 2023 amounted to CHF 1 092.9 million (2022: CHF 987.4 million), an increase of 11% compared to the prior-year period. In particular, supply bottlenecks eased slightly, which allowed more machines to be delivered than in the same period last year. Sales in the third quarter of 2023
were CHF 334.7 million (Q3 2022: CHF 366.8 million).

The Business Group Machines & Systems generated total sales of CHF 749.6 million in the first nine months of 2023 (+18%). The Business Group Components posted sales of CHF 206.8 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded growth of 13% to CHF 136.5 million in the first nine months of 2023.

Order intake in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts continued to weaken due to the slowdown in spinning mill capacity utilization. Rising interest rates and high energy and raw material prices also had a dampening effect.

In this market environment, the Rieter Group received orders totaling CHF 452.2 million in the first nine months of 2023 (2022: CHF 1 095.8 million). In the third quarter of 2023, orders decreased by 44% year-on-year to CHF 127.2 million (2022: CHF 226.4 million).

Rieter expects the market to have bottomed out in the year 2023 and anticipates a gradual market recovery in the course of the 2024 financial year.

As of September 30, 2023, Rieter has an order backlog of around CHF 900 million (September 30, 2022: CHF 2 000 million). The current order backlog will allow good capacity utilization at the production facilities into the coming year. The cancellation rate in the reporting period was within the usual range, averaging around 5% of the order backlog, with a slight downward trend.

In July 2023, the Group launched the “Next Level” performance program aimed at strengthening sales excellence, sharpening customer focus, improving cost efficiency in production and optimizing fixed cost structures. By taking these measures, Rieter intends to create the basis for providing an even more agile response to the cyclical nature of the machinery business. The objective of the planned initiatives is to ensure the profitable and sustainable development of the group.

The performance program includes provisions for the net reduction of approximately 300 positions in overhead functions across the group, primarily in Germany and Switzerland. The consultation processes initiated with the employee representatives in Ingolstadt (Germany) and Winterthur (Switzerland) were completed in the third quarter of 2023. The majority of these workforce reductions are expected to be implemented by the end of December 2023.

Due to the current market situation, further market- and volume-related adjustments in the range of 400 to 600 positions will be necessary, mainly in production. However, the actual number of positions to be reduced depends on the order intake in the coming months.

Rieter continues to expect that the strategic and operational measures initiated will result in one-off restructuring costs of around CHF 45 to 50 million, which will impact earnings in the 2023 financial year.

Outlook for the full year 2023 confirmed
As announced on July 20, 2023, in view of the economic situation and the ongoing cyclical market weakness, Rieter continues to expect below-average demand for new equipment in the coming months. A revival is not anticipated until the end of 2023 at the earliest. Likewise, Rieter believes that demand for consumables, wear & tear and spare parts will not recover until towards the end of 2023.

For the full year 2023, Rieter expects an EBIT margin of around 5 to 7% (including positive special effects of less than 2%) and sales at the previous year’s level of around CHF 1.5 billion.

Technological progress often results from close collaboration, and industries that rely on continual improvement stand to benefit from the return to in-person business. Cinte Techtextil China’s first edition since eased pandemic measures is set to reflect a 27.9% increase in exhibitor numbers, with a rejuvenated international contingent further supplemented by the return of the European Zone. Taking place from 19 – 21 September across 40,000 sqm at the Shanghai New International Expo Centre, the platform is expected to welcome buyers from across Asia, Europe, and beyond. Pre-registrations have doubled compared to the previous edition, and international buyers account for over 20% of the total.

The new zone, Marine Textile Zone, will be comprised of multiple Chinese green marine and nautical rope netting exhibitors, while also hosting the Technology Exchange Forum, and the awards ceremony of the Top 10 Suppliers in the China Rope Net Industry. Prominent exhibitors in this zone include Ropenet Group, Hunan Xinhai, and Zhejiang Four Brothers Rope.

Other domestic exhibitors, such as Shanghai Shenda Kebao New Materials, SIJIA New Material (Shanghai), Zhejiang Hailide New Material, and Zhejiang Jinda New Materials, will showcase products for applications in outdoor advertising, tents, boats, vehicles, environmental engineering, and much more.

Supplementing the fairground’s wide variety of domestic suppliers will be a much-increased showing of international exhibitors, with many to be found within hall E1’s European Zone. Several global industry leaders are featured in their categories below:

Nonwovens equipment

• Autefa Solutions, Germany: solutions provider for nonwovens lines and machines for carded-crosslapped needlepunching lines, spunlace lines and thermobonding lines.
• Dilo, Germany: in addition to offering general services, Dilo supplies opening and blending equipment, carding and airlay machines, and crosslapping and needling machines.
• Groz-Beckert, Germany: provider of industrial machine needles, precision parts and fine tools, as well as systems and services for the production and joining of textile fabrics.
• Reifenhäuser Reicofil, Germany: provider of innovative technologies and components for plastics extrusion, producing blown films, cast films, sheets as well as nonwovens.

Weaving equipment

• Itema, Italy: provider of advanced weaving machines, spare parts, and integrated services, specifically for rapier, air jet and projectile weft insertion technologies.
• Lindauer DORNIER, Germany: the company manufactures weaving machines, film stretching lines, and composite systems, also offering technical support and spare parts supply.
• Picanol, Belgium: producer and servicer of high-tech air jet and rapier weaving machines, with around 2,600 weaving mills utilising their systems worldwide.

Coating and lamination

• BRÜCKNER Textile Technologies, Germany: manufacturer of machines and lines for the coating and finishing of apparel fabric, technical textiles, nonwovens, glass fabrics and floor coverings.
• ROWA Lack, Germany: developer of high-quality materials and product solutions for the polymer industry, with applications including automotive, electrical engineering, construction, technical textiles, and medical technology.
• Stahl, the Netherlands: the Dutch company provides high quality coatings, dyes and process chemicals for leather, flexible coated substrates, textiles, films and foils, paper, and related products.

Fibre

• Monosuisse, Switzerland: with production sites in Switzerland, Poland, Romania, Mexico, and Germany, Monosuisse manufactures various precise, high-quality polymer monofilaments from 19µm to 3.00 mm in diameter.
• Perlon, Germany: specialised in the manufacture of synthetic filaments in diverse application areas, including paper machine clothing, dental care, and advanced technical textiles for agriculture, 3D printing, sports and leisure, home, and more.

Meanwhile, first-time exhibitors include Rökona (Germany), showcasing RE:SPACE, their range of recycled technical textiles; Testex AG (Switzerland), the official OEKO-TEX® representative in multiple countries including China; Hohenstein (Germany), the renowned testing laboratory and research institute; and zwissTEX (Germany), the knitted fabrics and lamination specialists. In addition, the returning Taiwan Pavilion is set to feature the debut of Shinih Enterprise Co Ltd (Taiwan China).

Beyond the innovation displayed at the booths, the fair’s programme is set to welcome global experts from various technical textile and nonwoven sub-sectors to offer specific insights and unveil innovations. Highlighted events include:

The 11th China International Nonwovens Conference
14 sessions cover topics such as the quality control of medical supplies; green development in technology and applications in the nonwovens industry; and the development and application of flashspun nonwovens in China.

Marine textiles and rope netting events
Events specific to this zone include the Top 10 Suppliers in the China Rope Net Industry; Conference on Textile Applications for Marine Engineering and Fisheries; and the China Nonwovens & Industrial Textiles Association (CNITA) Rope Net Branch Council Meeting

"Nonwovens, Creating a Better Life” Innovation Showcase
Product display area showcasing around 100 nonwovens products with applications in five areas: medical and health, quality of life, human habitat, sustainable development, and innovative design.

Advanced Technical Textiles Industry Chain Synergistic Innovation Development Forum
Includes presentations from multiple key players in the technical textile industry, including Mr Steven Liu, Commercial Manager of Polymer Additives Business of Sanitized (China) Ltd.

Archroma, a global leader in specialty chemicals towards sustainable solutions, was highlighted for its advanced sustainable practices and innovation in Pakistan by the Swiss Embassy. Foreign Minister of Switzerland, Mr. Ignazio Cassis who was on an official state visit to Pakistan visited Archroma Center of Excellence at Karachi on 9 July 2023 along with high-level officials and three Members of Swiss Parliament.

Mr. Ignazio Cassis was greeted by Archroma employees at the Archroma Center of Excellence. He inaugurated the company’s "Wall of Pride", an impressive collection of recognitions, accolades and honors earned by Archroma in Pakistan since the company’s inception in October 2013.

Mr. Cassis visited the Research & Technology (R&T), Application, Analytical Laboratories & Training Academy spread on three floors at the Archroma Center of Excellence and saw the developmental work in progress. He was shown printing of multi-colored fabrics along with research based developmental analysis in the laboratories.

The globally acclaimed ‘Zero Liquid Discharge Sustainable Effluent Treatment Plant’ and the aniline-free* indigo produced at Jamshoro were the two of the main highlights showcased as best-in-class sustainable practices in the industry. Presentations and discussions were held on continued enhancement of these landmarks with the local industry.