From the Sector

UK advanced materials and technology firm Hypetex, a manufacturer of coloured carbon fibre, has appointed Michael Dowse as a Non-Executive Director and Board Member.

Dowse brings experiences across sport and retail, following leadership roles at some of the biggest sports organisations and companies in the world. He was a Global Director for Nike before becoming President and General Manager Outdoor Americas for Amer Sports, managing brands such as Salomon, Arc’Teryx and Suunto.

As President of Wilson Sporting Goods (2013-2019), Dowse led 1,500+ colleagues in delivering the company’s global strategy, corporate operations, and manufacturing across more than 160 countries. He then took up the position of Chief Executive Officer and Executive Director of the United States Tennis Association (2020-2022).

Dowse will join a group of advisors at Hypetex, which includes Board Chairman Neil MacDougall and former Diageo Chief Financial Officer Nick Rose. They will support CEO Marc Cohen and Chief Technology Officer Nigel Dunlea as they continue to expand the company’s presence in sport and other sectors worldwide.

• Sales increase of 10.7% to €549.8 million in the first half of 2022
• EBITDApre improves by 22.6%, higher than the increase in sales, to €87.9 million
• Positive business development, price increases and strict cost management led to forecast increase on June 7, 2022

Despite uncertain general conditions in the first six months 2022, SGL Carbon's business model is proving its resilience. After €270.9 million in Q1 2022, SGL Carbon was able to increase sales to €278.9 million in Q2. Accordingly, sales for the first half of 2022 amount to €549.8 million, which corresponds to a sales plus of €53.1 million or 10.7% compared to the same period of the previous year.

The increase in sales was driven in particular by customers in the semiconductor industry and growth in the industrial applications market segment. Demand from the automotive and chemical industries was also encouraging.

EBITDApre, as one of the Group's key performance indicators, improved by €16.2 million (+22.6%) to €87.9 million (H1 2021: €71.7 million). Consequently, the EBITDApre margin increased from 14.4% to 16.0%. In addition to the higher utilization of production capacities due to higher sales, the improvement in earnings was also driven by the largely successful passing-on of higher raw material and energy costs to customers as well as savings from the transformation program.

EBITDApre does not include positive one-off effects and non-recurring items totaling €10.6 million (H1 2021: minus €5.2 million). As a result, EBIT in H1 2022 increased significantly from €38.3 million to €69.6 million. Taking into account the financial result of minus €16.6 million (H1 2021: minus €14.0 million), consolidated net income for the first six months of the current fiscal year amounted to €48.8 million, compared to €17.9 million in the prior-year period.

Business Units
With an increase in sales of €22.2 million (+10.0%) to €243.4 million, the Graphite Solutions (GS) business unit made a major contribution to SGL Carbon’s sales growth. In particular, continued high demand from customers in the semiconductor sector, which represents approximately one third of the segment's sales, led to the positive business development in GS. As a result of the predominantly high-margin business, EBITDApre at GS improved by 22.7% to €54.0 million.

The Process Technology (PT) business unit benefited from the good order situation in the chemical industry in H1 2022 and consequently increased sales to €49.2 million (H1 2021: € 40.8 million). EBITDApre also improved from €0.1 million in the prior year’s first half to €4.1 million in H1 2022.

The Carbon Fibers (CF) business unit benefited in the 1st half 2022 from final deliveries to a major automotive manufacturer whose contract expired as scheduled on June 30, 2022. Segment sales increased by 5.8% year-on-year to €176.0 million. In contrast, EBITDApre at CF decreased by €4.2 million to €28.2 million despite the good order situation and successful price increases. It should be noted that CF was impacted by a special effect from energy derivatives for price hedging in the amount of €9.2 million in the first quarter of 2022.

With an increase in sales of 15.6% to €69.6 million, the Composite Solutions (CS) business unit continued its upward trend. The specialist for customized component solutions for the automotive industry improved its EBITDApre from €5.7 million in the first half of 2021 to the current €9.7 million, based in particular on price and volume effects.

Balance sheet figures
Working capital rose by 11.7% to €381.1 million as of June 30, 2022. This was mainly due to higher inventories (€ +73.9 million) and an offsetting increase in trade payables (€ +29.0 million). A targeted build-up of inventories in critical raw materials due to disruptions in transport routes and the recent Covid lockdown in Shanghai were some of the reasons for the higher inventory levels.

SGL Carbon's net financial debt slightly increased by €6.6 million to €212.9 million as of June 30, 2022 (Dec. 31, 2021: €206.3 million), which was due to a lower free cash flow of €7.5 million for H1 2022 (H1 2021: €56.6 million).

Guidance increase
On June 7, 2022, SGL Carbon raised its sales and earnings guidance for fiscal year 2022. The company now expects sales of €1.1 billion (previously: around €1.0 billion) and EBITDApre of €130 - 150 million (previously: €110 - 130 million). Based on the pleasing business development, realized price increases, a stringent cost management, and taking into account the currently known risks, SGL’s management expects to achieve the earnings forecast for 2022 at the upper end of the stated range.

Cobra International has launched an innovation report highlighting its key composite manufacturing innovations that have reshaped the Windsurfing industry.
Having first begun building windsurf boards in 1978, Cobra continues to drive technology development in the sport and 44 years later, manufactures approximately 80% of the world’s composite windsurf boards. Manufacturing for leading brands such as Fanatic, Starboard, Naish, RRD, JP and Quatro Goya, Cobra has consistently evolved and improved the construction and finishes of the boards that it builds, balancing stiffness, comfort, weight, strength, durability, and aesthetics.
Cobra’s report details key manufacturing innovations including:

• The introduction of its innovative vacuum moulding technique that Cobra perfected just as the popularity of the sport exploded.
• The manufacture of its own composite EPS forming moulds producing strong, watertight cores that are ready to use in production directly from the mould.
• The mass production of sandwich boards with thermoformed PVC foam wrapped around the rails, increasing the board’s strength whilst keeping weight to a minimum.
• Seamless rail construction
• High-volume manufacturing capacity optimized for the finest prepreg carbon foils satisfying the current demand for windsurf foiling equipment
• Development programs with on of the world’s leading carbon fibre fabric producers to create ever lighter biaxial fabrics.

“As we set aside time during the pandemic to upskill, innovate, and look to the future, it was also important that we referred back to our key technology successes. This got us thinking about so many of our developments which led us to create this innovation report. Customers can draw great confidence from the fact that the Cobra team is always working on tomorrow’s next generation product as well as building exceptional quality into each of today’s boards.” Bruce Wylie, CCO, Cobra International

Hexcel will present a wide range of high-performance composite innovations for the Automotive, Marine, Wind Energy and Recreation markets during JEC World 2022 in Paris on May 3 – 5.

G-Vent Technology for Marine Structures
Hexcel has developed a new technology for out-of-autoclave (OoA) processing that delivers a game-changing reduction in process time and cost for marine manufacturers without compromising mechanical performance. Hexcel has leveraged its experience in aerospace and wind energy to develop its new G-Vent technology for OoA processing of highly loaded, thick section marine structures such as masts, foils, and wind-assisted ship propulsion (WASP) components. A full range of Hexcel marine prepregs are now available with integrated G-Vent technology, reducing the requirement for debulking steps and ensuring extremely low porosity (<1%) regardless of the laminate thickness. Leading marine non-destructive testing specialists Q.I. Composites recently confirmed that the thick section G-Vent panels they had evaluated had void contents and laminate quality in line with state-of-the-art autoclaved prepreg components. Visitors to the Hexcel stand will see a unique 400mm carbon cube cured in a single stage using 695 layers of HexPly M79 carbon fiber UD600 prepreg with G-Vent technology.

New HexPly® Nature Range Sustainable Prepregs
HexPly® Nature Range prepregs feature proven resins such as HexPly M49, M78 and M79 with bio-derived epoxy resin content. Created for use in all industrial markets, HexPly Nature Range materials can be seamlessly integrated into existing production processes, maintaining consistent mechanical performance and processing properties. A dedicated sustainability corner of the Hexcel stand will detail Nature Range products optimized for automotive, marine, wind energy and winter sport applications. The display will include an alpine ski produced by leading manufacturer Tecnica Group Ski Excellence Center which produces skis for Blizzard and for Nordica using HexPly Nature M78.1 UD flax prepreg material. In addition to the reduced environmental impact of the sustainably grown reinforcement, the flax fiber laminates also improve impact resistance and vibration damping in the ski.

HexPly® XF Surface Technology for Improved Part Surface Finish Quality
HexPly XF is a lightweight, semi-preg material that replaces traditional in-mold gel coat. It eliminates time-consuming refinishing work typically required to obtain a paint-ready surface and produces lighter, more consistent parts with shorter cycle times and a cleaner working environment. Visitors to the stand will see a composite panel illustrating a high-quality painted surface enabled with XF technology in a diverse range of industrial applications such as super yacht roof parts, Class A surface automotive panels, and both prepreg and infused wind turbine blades.

HexPly® M49 Prepreg for Automotive Visual Carbon Parts
HexPly M49 is easy to process and is especially suitable for visual carbon fiber-look applications such as the Brabus hood scoop on display on the Hexcel stand at JEC.

HexPly® Prepregs and HiMax® Reinforcements for Performance Marine Structures
Using a scale model of a Gunboat 68 performance sailing catamaran, Hexcel will illustrate how its HexPly and HiMax materials provide manufacturers with a complete set of lightweight composite solutions for high-performance marine structures. HexPly prepreg was selected for critical structural parts of the Gunboat 68 and provides very high mechanical performance including high dry and wet Tg.

Heavyweight HiMax reinforcements offer high deposition rates and remain easy to handle after cutting, making them highly suitable for industrial applications. In combination with a lightweight PrimeTex® woven fabric, the package of carbon fiber HiMax materials developed for the Gunboat 68 enabled consistent resin flow during infusion with reduced surface print-through.

Hexcel Fibers and Reinforcements for Lightweight Sporting Equipment
Sporting equipment manufacturers rely on Hexcel composite materials to deliver the ultimate performance at the lowest possible weight. Hexcel will exhibit a number of the latest high-performance sporting equipment applications such as a Bauer hockey stick featuring PrimeTex 98 gsm AS4C 3K fabric and a Corima tri-spoke cycling wheel made with lightweight Hexcel carbon fiber UD tape. Hexcel will also demonstrate how its HexTow® carbon fibers are used in key leisure and marine applications by displaying an AEROrazr solid carbon rigging component manufactured by spar and rigging manufacturer Future Fibres for the 36th America’s Cup.

• Hypetex® to Showcase Coloured Carbon and Flax Fibre Solutions
• Hypetex, London, April 20 2022, Booth R52, Hall 6

Hypetex, the market leaders in colouring carbon and natural fibre materials, will demonstrate both the processing and sustainability benefits of its patented colourisation technology when it exhibits for the first time at JEC World 2022.

Exhibiting as part of the Composites UK stand (Booth R52), Hypetex will display its portfolio of uniquely coloured carbon fibre materials including 3K woven styles, ultra-lightweight spread tow fabrics, UD, and 3D materials. Hypetex will also present details of its latest eco-friendly coloured flax materials  which combine sustainably grown natural flax with sustainable colouring technologies. Hypetex patented colouring technology, available in an extensive palette of standard and bespoke colours and shades, can be applied to traditional woven fabric constructions, non-woven UDs, spread tow and bespoke fabric designs. The technology replaces a traditional coloured painted finish, providing an exceptional depth of colour to any composite part, improving thermal conductivity and reducing heat absorption ,whilst reducing the overall weight and processing time with no compromise to the mechanical performance of the composite structure.

By removing the need for painting, and the associated preparation steps, Hypetex technology provides manufacturers with a repeatable straight out of the mould coloured finish, that is not only easy to integrate into all composite processes, but also takes additional materials, consumables, and process time out of the component cost. As part of its continued commitment to leading the drive for more sustainable composite solutions, and its focus on improvements based on the ESG framework. Hypetex will also display its new range of coloured flax fibre textiles. The advanced colouring technology used protects the natural flax fibres throughout the high temperature processes required for composite production, avoiding burning or any discolouration issues common to natural fibres. In addition, Hypetex colouring solution is an ecofriendly sustainable alternative to traditional dyeing processes which are a significant cause of global water pollution.

The Hypetex team will be on hand throughout the show to provide additional details on Hypetex materials and their integration into the manufacturing process. Visitors to the Hypetex stand will be able see Hypetex carbon and flax products in raw fabric, and how its unique colour palette translates into the most distinctive finished moulded components. Hypetex partners SHD Composites, Textreme, Sigmatex and Angeloni will also have materials and components on display at JEC World 2022, including sporting equipment such as racquets, sticks, and skateboards, which highlight the massive range of processing options and potential applications for this novel technology. One such application, the adidas Kromaskin field hockey stick, with a unique Hypetex coloured Textreme spread tow carbon finish, will also be part of the JEC Innovation Planets feature.

International technology group ANDRITZ will be presenting its special-purpose machines for needlepunch production (including its portfolio for carbon applications) at JEC World 2022 in Paris, France, from May 3 to 5.

Experience and Know-How
ANDRITZ designs, develops, and engineers special-purpose machines for very specific and sensitive applications, like aerospace, railway, and military needs. Therefore, it can provide the market with customized machines offering perfect solutions, whether they are needed for prototypes or for industrial production.

Skilled Engineers
In increasingly demanding markets, the skilled ANDRITZ engineers and technicians help customers get the most out of their investments. The variety of cases they face every day enables them to optimize both output and quality depending on the fibers used, the challenge, and the customer’s final application.

Carbon Expertise
Experience with conductive fibers enables ANDRITZ to overcome challenges and provide access to new product developments. The company’s expertise lies in textile know-how as well as a deep understanding of related constraints. It includes carded/crosslapped processes for nonwovens made from recycled carbon fibers, which can be delivered in rolls or die-cut shapes.

Unconventional Needling for End-Uses
ANDRITZ addresses customers’ challenges by offering solutions and expertise in terms of straight and multi-axial needling, enabling the consolidation of fibers on flat or non-flat surfaces (such as rounded shapes) and even of layers up to 350 mm thick. New developments are made possible thanks to the outstanding ANDRITZ testing facility.

Support and Development
The ANDRITZ needlepunch technical center in Elbeuf, France, is open to visitors. Innovative strength and adaptability are the characteristics that make ANDRITZ the preferred partner in the search for genuine, efficient, and reliable solutions in the interests of productivity and premium, state-of-the-art consolidation. Secrecy being key in such sensitive development work, ANDRITZ naturally always guarantees the utmost confidentiality.

Mit ihren Forschungsergebnissen zur Herstellung von Kohlenstofffasern aus Holz bewarben sich die DITF erfolgreich um den ersten Preis der „Cellulose Fibre Innovation of the Year“. Nominiert wurden die DITF im Rahmen der „International Conference on Cellulose Fibres 2022“, die vom 2. bis 3. Januar in Köln stattgefunden hat.

Zum zweiten Mal kürte das nova-Institut für Ökologie und Innovation im Rahmen der „International Conference on Cellulose Fibres 2022“ herausragende wissenschaftliche Forschung, die nachhaltige Lösungen für die Wertschöpfungskette von Zellulosefasern liefert. Die DITF Denkendorf präsentierten sich mit dem Thema „Kohlenstofffasern aus Holz“ inmitten eines aktuellen Forschungsfeldes, das ressourcenschonende Alternativen zu Fasern auf fossiler Basis liefert.

Das Kompetenzzentrum Biopolymerwerkstoffe der DITF Denkendorf erhielt bei der Nominierung den ersten Platz mit der Präsentation von Kohlenstofffasern (Carbonfasern), die in einem neuartigen und nachhaltigen Verfahren aus dem Rohstoff Holz gewonnen werden. Die HighPerCellCarbon®-Technologie beschreibt ein patentiertes Verfahren, das unter der Federführung von Dr. Frank Hermanutz weiterentwickelt worden ist: In Folge dessen können in einem nachhaltigen und besonders umweltschonenden Prozess Carbonfasern auf der Basis von Biopolymeren erzeugt werden.

Das HighPerCellCarbon®-Verfahren umfasst das Nassspinnen von Zellulosefasern unter Verwendung ionischer Flüssigkeiten (IL) als Direktlösungsmittel. Das Filamentspinnverfahren stellt den zentralen technischen Teil. Es erfolgt in einem umweltfreundlichen und geschlossenen System. Das Lösungsmittel (IL) wird dabei vollständig rezykliert. Die auf diesem Wege erzeugten Zellulosefasern werden in einem weiteren Entwicklungsschritt durch einen Niederdruck-Stabilisierungsprozess direkt in Carbonfasern umgewandelt, gefolgt von einem geeigneten Carbonisierungsprozess. Während des gesamten Verfahrensablaufs entstehen keine Abgase oder giftigen Nebenprodukte.

Neben der Rezyklierfähigkeit des verwendeten Lösungsmittels steht besonders die Verwendung des Rohstoffs Holz für Ressourcenschutz. Erdölbasierte Ausgangsstoffe, die üblicherweise in der industriellen Herstellung von Carbonfasern Verwendung finden, werden durch nachwachsende Biopolymere substituiert.

Teijin Limited announced today that its carbon fiber subsidiary Renegade Materials Corporation, a leading U.S.-based supplier of highly heat-resistant thermoset prepregs, resins and adhesives for the aerospace industry, will expand its prepreg production by 2.5 times approximately. The increased capacity, which aligns with Renegade’s capacity expansion strategy at the Miamisburg, Ohio location, is the result of a USD 4 million investment made in December 2019 and the construction was started in March 2020. Operation of the new production lines will commence January 2022.

Renegade Materials' heat-resistant thermoset prepregs, resins and adhesives are well trusted by U.S. and European aircraft manufacturers and aircraft engine suppliers.

Renegade Materials will showcase its high heat-resistant thermoset prepreg at the Composites and Advanced Materials Expo (CAMX), one of the largest, most comprehensive composites and advanced materials event in North America, at the Dallas Convention Center in Dallas, Texas, from October 19 to 21.

• Composites in the construction industry - The lightweight construction material of the future

Building with fibre-reinforced materials opens up completely new possibilities. In terms of engineering, design, and organisation. This is due, on the one hand, to the excellent properties of fibre-reinforced materials (FRM) and, on the other hand, to the fact that the material – unlike wood or brick, for example – is not machined or processed for its use, but custom-produced.

Excellent properties – in terms of engineering, design, and organisation
Fibre-composite materials offer a whole range of technical properties for innovative and sustainable building:
•    High mechanical rigidity
•    Low weight
•    High corrosion resistance
•    Low material fatigue
•    Low heat transfer coefficient of the plastic matrix
•    Resistance to frost and de-icing salt
•    Good draping capability

In addition, fibre composites offer numerous design options for novel and exceptional new building and maintenance projects:
•    Unique variety of shapes
•    Different structures of the textiles
•    Large spectrum of colours and colour combinations
•    Translucency of the plastic matrix
Thanks to these properties, composites can be used to produce coloured, phosphorescent, thermochromic or – through the use of LEDs or light-conducting fibres permanently integrated into the matrix – luminescent components.

In addition, there are organisational benefits for planning, construction and maintenance work with fibre-reinforced materials:
•    Easier handling and assembly of the far lighter and more flexible components – compared with steel, concrete or wood
•    Faster installation
•    Shorter construction site times in road and bridge maintenance
•    Shorter delivery times
•    Ability to integrate electronic monitoring systems

Individual composite textiles – for every lightweight engineering project
The composites experts at vombaur develop and manufacture woven tapes and seamless round or shaped woven textiles from carbon, glass, flax or other high-performance fibres on special weaving lines for individually specified round and shaped woven textiles – and can therefore offer you the best possible fibre base for every lightweight construction project.

"Regardless of whether it's a new construction or a renovation project, a façade design, a bridge or a staircase – as your development partner for composite textiles, we have plenty of experience with composites for demanding tasks," emphasises Dr.-Ing. Sven Schöfer, Head of Development and Innovation at vombaur. "We develop, create samples and manufacture woven tapes and seamless round or shaped woven textiles – in collaboration with the customer enterprise development teams and individually for the respective projects." This is how novel and unique lightweight components made of high-performance textiles are created for visionary projects.

• Transformation program and improving order situation show first successes
• Sales up 8.8% to €496.7 million compared with first half of previous year
• Adjusted EBITDA improves by 70.7% to €71.7 million
• Positive business development led to forecast increase on July 13, 2021

While the past fiscal year 2020 was still characterized by a Corona-related slump in orders in many business areas of SGL Carbon, demand picked up again in the first six months of 2021. Accordingly, Group sales increased by 8.8% to €496.7 million in H1 2021 (H1 2020: €456.5 million).

The Carbon Fibers and Composite Solutions Business Units particularly contributed to the €40.2 million increase in sales. Carbon Fibers contributed €166.4 million to Group sales, especially benefiting from increased demand from the automotive market segment. In the Composite Solutions Business Unit, the increase in sales of 52.4% to €60.2 million was also primarily based on the recovering demand from the automotive industry.

With sales of €221.2 million, the Graphite Solutions business area contributed around 44.5% of SGL Group sales. The 3.8% increase in the division's sales was particularly due to the positive development in the important markets of the LED, semiconductor and automotive industries.

Transformation program:
The restructuring and transformation process initiated at SGL Carbon made a significant contribution to the Company's positive sales and earnings performance. In addition to leaner and more efficient structures as well as a reorganization of the business units with responsibility for results, a large number of improvements and cost initiatives in all business units and sites have contributed to the success of the ongoing transformation program.

Forecast increase:
Due to pleasing business development in the first half of the year as well as transformation successes, SGL Carbon raised its forecast for fiscal year 2021 on July 13, 2021. For the financial year 2021, the company now expects consolidated sales of around €1.0 billion (previously: €920 - 970 million). In line with developments in the first half of 2021 and the results from the transformation, adjusted EBITDA for 2021 is expected to be between €130 - 140 million (previously: €100 - 120 million). Accordingly, a slightly positive net profit is now forecasted for fiscal year 2021 (previously: €-20 million to €0).