From the Sector

Industry people at the 18th Bangladesh Denim Expo thinks that the country will continue to be an indispensable global sourcing destination even during the times of tariff and trade wars. Capacity building and innovation will be the building stone for the industry to sail through the uncertain times.

The 2-day expo kicks off today where 57 exhibitors from 13 countries are participating includes Bangladesh, India, Pakistan, China, Turkey, Spain, Italy, Vietnam. UAE, Germany, Switzerland & USA.

“Bangladesh has emerged as the fastest-growing apparel exporter to the United States in the first quarter of 2025, posting the highest year-on-year growth of 26.64%. This performance placed Bangladesh ahead of other major exporters such as India with a 24.04% rise, while Pakistan, Vietnam, and China with the rise of 17.49%, 13.96%, and 4.18% respectively at a time when US market is volatile because of imposing worldwide reciprocal tariff by the Trump’s Administration recently. I think even on the negotiation table of the trade issues our card should be the industry’s steady progress towards skill development, sustainability and innovation. As we need our trade partners as much as their consumers need us’’ said Mostafiz Uddin, Founder & CEO of Bangladesh Denim Expo.

Bangladesh is the largest denim exporter both to the USA and Europe. The country is enjoying duty-free market access to the EU under the Everything But Arms (EBA) and Generalized Scheme of Preferences (GSP) as an least developed country (LDC); but the status to be changed to a developing nation next year.

If Bangladesh could not attain GSP Plus, the country from 2029 could not export duty free to the EU, the region accounts for 50.15% of Bangladesh’s total apparel export.

“In the last edition of Bangladesh Denim Expo, we had experts panel sessions on the LDC graduation where all the speakers unanimously stressed on the capacity building of the industry to cope up with the changing tariff regimes.  So, in this edition of the expo, all the panel sessions we designed are solely meant for capacity building of both the professionals and the industry. You may also say that from this edition we shifted from plans to actions to prepare Bangladesh’s denim industry for 2029 and beyond,’’ added Mostafiz Uddin.

There are two panel sessions scheduled for the two-day event on the topics “The growth of the Bangladesh denim industry, through the perspective of denim washing” and “Stretch-ability of Bangladesh denim traceability”.

Abdus Samad, Director, Well of Washing, Arief Labu, Co-founder & Creative Director, Ruhrose RBT Ltd. Julie Davies, GM - Processing Innovation, and Education Extension, The Woolmark Company, Kamal Uddin Mia, Chief Operation Officer (Washing), Bitopi Group, Marco Volpi, Head of Sales for the Europe and Africa region, Bluesign Technologies AG, Md. Forhad Hossain, Owner, Pure Chemicals, Raquib Imtiaz, Business manager, LC WAIKIKI, Reza e Rabbi, Head of Operation, Vertex Wear Limited,  Shohel Rana, CEO, Designer Fashion LTD and Designer Wash LTD, are sharing their expert insights in the panel sessions.

There will be also one special presentation on ‘The denim business beside sewing and wash production’ by Mohammad Jahangir Alam, Head of Operation, Square Denims Ltd, Garment Unit.  

At the expo also a fashion trend-zone is set up to showcase cutting-edge denim innovations and unique fabrics from Bangladesh.

Rieter has signed a definitive agreement to acquire Barmag from OC Oerlikon for an upfront equity purchase price of CHF 713 million. The acquisition will create a globally leading player in natural and manmade fibers, headquartered in Winterthur, Switzerland, and is highly complementary to Rieter’s short-staple fiber business.

Barmag is a provider of filament spinning systems used for manufacturing manmade fibers, texturing machines, BCF1) systems, staple fiber spinning and nonwovens solutions and – as an engineering services provider – offers solutions along the textile value chain. In the financial year 2024, the company generated sales of CHF 734 million with around 2 600 employees.

Barmag comprises the established product brands Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven. The main markets for the Barmag product portfolio are China, India, Türkiye and the United States of America. The innovative and technologically advanced products are developed in Remscheid and Neumünster (Germany) as well as Suzhou and Wuxi (China).

As fiber consumption is projected to rise, most of the growth is expected to come from manmade fibers. The increase of natural fibers such as cotton and linen is limited due to natural boundaries. Manmade fibers will help to meet expanding demand for clothing, technical and home textiles. The strategic acquisition of Barmag will transform Rieter into a leading supplier for converting natural and manmade fibers into yarn.

The transaction is fully in-line with Rieter’s strategy and follows previous acquisitions, where Rieter complemented its portfolio in short-staple fiber machinery and expanded its footprint in components and machinery for manmade fiber production. The combined platform allows to leverage the recovery of global filament and short staple fiber spinning markets and to reduce cyclicality due to diversification of end-markets. The acquisition will further enhance Rieter’s position in the important Asia-Pacific region and provide access to Barmag’s filament expertise, which will help to further scale Rieter’s own capabilities and improve digitization solutions and product sustainability.

Rieter’s largest shareholder, Peter Spuhler (c. 33% shareholding) is supportive of the transaction and committed to participating in the rights-issue pro-rata by exercising its subscription rights as well as investing additional capital through the non-pre-emptive capital raise. After the capital increase, PCS Holding AG is expected to retain a shareholding of c. 33%.

Additionally, Rieter’s second-largest shareholder, Martin Haefner (c. 10%), also supports the transaction and has committed to participating pro-rata in the rights-issue by exercising its subscription rights and investing additional capital through the non-pre-emptive capital raise.

On March 31, 2025, DEMGY Group took a decisive step in its international development strategy by acquiring the American company TOOL GAUGE, which specializes in the manufacture of plastic components for the interior of aircraft cabins. This acquisition will enable DEMGY to consolidate their position as one of the world leaders in high value-added plastics processing for civil and military aeronautics.

With this operation, DEMGY is extending its footprint on the North American market, a strategic territory for the aerospace sector. The American company, now renamed DEMGY Pacific, is thus joining a group already present in France, Germany, Romania and the United States, bringing the total number of the group's industrial sites to 10.

Recognized expertise for the benefit of American aerospace
Based in Tacoma, Washington State, TOOL GAUGE has nearly 60 years of experience in the processing of high-performance polymers and the machining of precision parts. Recognized for its operational excellence, it has been awarded the Silver Performance Excellence Award by Boeing for 9 consecutive years.

The company has two complementary production units: one dedicated to plastic injection, particularly for interior fittings in aircraft cabins, and the other specializing in the machining of metal and plastic parts. This technical expertise considerably strengthens DEMGY's offering to major clients in the aerospace sector.

Airbus, Boeing: DEMGY stands out as a key partner
This strategic acquisition enables DEMGY to become a tier 1 supplier for Boeing and Airbus, as well as a tier 2 supplier for all their equipment manufacturers in Europe and North America. This positioning considerably strengthens the group's visibility and attractiveness on the global aerospace market.

"By strengthening its leadership in high value-added plastics processing for the aerospace and defense industries, the DEMGY Group has become one of the world's leading, if not the leading, supplier of plastic parts for cabin interiors directly to Airbus and Boeing, as well as to all American and European aircraft equipment manufacturers," says Pierre-Jean LEDUC, Chairman and CEO of DEMGY Group. "This enables us to deploy our high and extreme performance plastics solutions on a much larger scale".

Integration driven by DEMGY Group's cross-functional synergies
DEMGY Pacific will be managed by Mike Walter, also President of DEMGY Chicago, and Eric Wilmoth, Vice-President of Operations. Both will be tasked with implementing industrial and commercial synergies with all the entities of the group, particularly in terms of injection, assembly and decoration.

This integration will promote the development of global solutions to meet the growing demands of the aerospace industry in terms of lightness, performance and durability.

Target of 200 million euros: managed growth
With its 10 industrial sites and 950 employees, DEMGY forecasts sales of over 130 million euros by 2025. Our group's ambition is to reach 200 million euros by 2030, capitalizing on its unique know-how, capacity for innovation and proximity to major customers.

Materials lightening at the heart of decarbonization
For several years, DEMGY has been committed to reducing the carbon footprint of industries, by designing polymer materials that are lighter than metal, durable and recyclable.Thanks to our circular Multiplasturgy® offer, we integrate eco-design from the product development phase.

adidas announced preliminary results for the first quarter of 2025. The company’s revenues grew nearly € 700 million and reached € 6,153 million in Q1 (2024: € 5,458 million).

In currency-neutral terms, sales increased 13%. Excluding Yeezy sales in the prior year, currency-neutral revenues for the adidas brand increased 17% during the quarter, driven by double-digit growth across all markets and channels.

The company’s gross margin improved 0.9 percentage points to 52.1% (2024: 51.2%). The year-over-year increase of the gross margin for the adidas brand was even stronger at 1.6 percentage points. Operating profit improved strongly to € 610 million in Q1 (2024: € 336 million), reflecting an operating margin of 9.9% (2024: 6.2%).

Having completed the sale of the remaining Yeezy inventory at the end of last year, the company’s results for the first quarter of 2025 do not include any Yeezy contribution.

adidas CEO Bjørn Gulden:
“I am very proud of what our team achieved in Q1. Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand and underlines the great job our people are doing. The operating profit of € 610 million and the 9.9% operating margin prove the great potential of our company. A great quarter!”

adidas will publish its final set of financial results for the first quarter on April 29, 2025.

Rieter has stood for pioneering innovation in textile technology for 230 years. Founded in 1795, the company has grown from a trading company to a global technology leader. With a clear focus on automation, digitization and sustainability, Rieter is shaping the future of yarn production and continues to set standards in the industry.

Rieter, a world leader in developing and manufacturing systems for yarn production with staple fibers, is celebrating its 230th anniversary this year – a history characterized by change, innovation and growth.

The Rieter success story began on April 15, 1795, when Johann Jacob Rieter founded the company J.J. Rieter & Cie. in Winterthur, Switzerland. Rieter started as a trading company for exotic spices and cotton, and on April 23, 1795, the first cotton bale had already arrived at the Waaghaus trading house on Marktgasse in Winterthur.

Initially involved in spinning mills and textile manufacturing, Rieter continued to develop over the 19th century and shifted its focus to building industrial machinery. Acquiring the buildings of the former Töss Abbey in Winterthur in 1833 was an important step. In addition to spinning mill machines, the company’s product line also included machines for winding, knitting, and weaving.

In 1891, Rieter converted into a stock company, which was a significant milestone in the company’s history. In the decades that followed, Rieter set new technological standards again and again. For example, the company was the first machine factory in Switzerland with electronic data processing and Rieter set up a modern laboratory for testing materials. It was joined by prototype workshops, a textile laboratory, and a test spinning mill to support further innovation.

Despite economic challenges, Rieter has always used times of crisis as an opportunity to increase its efficiency and hone its strategic focus. Along with its subsidiaries Accotex, Bräcker, Graf, Novibra, Suessen, SSM, and Temco, today Rieter is distinctive and well-known in the market. The company is a leader in spinning mill technology and contributes to sustainability in the textile value chain with state-of-the-art machines, systems, and components.

Rieter’s success is based not only on technological excellence, but above all on the people who drive the company forward. The approximately 4 800 employees worldwide are the company’s greatest asset. With their expertise, innovative spirit, and passion, they set new standards every day and play an active role in shaping Rieter’s future.

From Rieter’s perspective, the future of spinning mills is automated, digital, and intelligent. Research and development activities are being intensified – in both the areas of autonomous transport systems and collaborative robotics, as well as for ESSENTIAL, Rieter’s digital spinning mill platform. The goal is to fully automate the value creation process of spinning mills by 2027. This will enable spinning mills to reduce their yarn manufacturing costs and maximize their returns. Customers can then concentrate fully on their yarn business and rely on Rieter’s technology and know-how for their operations.

With 230 years of experience, strong innovative power, sustainable solutions and a global sales and service organization, Rieter looks to the future with confidence.

The full potential of advanced coating and finishing technologies for the production of technical textiles will be outlined by Monforts specialists which takes place in Atlanta, Georgia, in May.

The company and its US representative PSP Marketing, of Charlotte, North Carolina, will be part of the VDMA German Pavilion at the show, at stand 3231 within the Georgia World Congress Center.

A wide range of technical fabrics is now being successfully created with MontexCoat coating units in comination with Montex stenters, including tents, tarpaulins and awnings, black-out roller blinds and sail cloth, automotive interior fabrics and medical disposables.

Full PVC coatings, pigment dyeing or minimal application surface and low penetration treatments can all be carried out with the extremely versatile system. Solvent coatings in explosion-proof conditions, knife coating, roller coating and screen printing are further options and the MontexCoat has been engineered to enable users to switch quickly from one fabric run to the next without compromising on the economical use of energy or raw materials.

“There has already been terrific interest in the MontexCoat and the range of different techniques it enables and we’re far from exhausting its potential uses,” says Achim Gesser, Monforts Area Sales Manager who will be at the show in Atlanta. “For companies who don’t need such flexibility, the economical coaTTex unit is exclusively dedicated to air knife and knife-over-roller coating.

“At our ATC in Mönchengladbach, Germany, however, a MontexCoat unit has been integrated into a full Montex technical textiles pilot line, on which our customers can run trials of new fabrics and finishing formulations in widths of up to 1.8 metres. This line has been engineered to provide the ultimate in precision coating and finishing in industrial-scale trials.”

To fully demonstrate what’s possible, the Montex line at the ATC is able to treat materials not only at temperatures of up to 320°C, but apply separate coatings on the two sides of certain materials at different temperatures, within a single pass through the machine. To achieve this, the first two chambers of the stenter are fitted with TwinTherm burners for individual top/bottom heating. A temperature differential of up to 60°C can be achieved between the upper and lower nozzles within the chamber, depending on the treatment parameters.

“There are many applications where employing two separate temperature treatments is beneficial, such as floorcoverings – where the textile face fabric is treated at one temperature and the rubber backing at another – as well as PVC flooring employing chemical foams, black-out roller blinds with heavy backings or PTFE-coated filter materials,” Gesser explains.

Another key feature of the technical textiles line at the ATC is the Montex stenter’s special stretching device which is capable of pulling ten tons in length and ten tons in width – a huge amount per square metre of fabric and necessary in the production of materials such as woven or 3D knits for high temperature filter media.

Monforts also offers the special T-max grease-free stenter chain for high temperature treatments up to 320°C, at machine speeds up to 100m/min and transverse tension up to 2,500 N/m with the benefits of no maintenance and no grease marks on fabric.

“Technical textiles are extremely diverse in their end-use applications but the needs of the manufacturers of very different materials are still uniform in many respects,” says Gesser. “European-built Montex stenters provide maximum finishing efficiency and many of our customers are operating them 24 hours a day over seamless shifts.”

Existing customers include manufacturers in the fields of home textiles, geotextiles and automotive fabrics, as well as functional materials and dedicated Montex lines have also been supplied to producers of airbags, flame retardant barrier fabrics and spacer fabrics.

“Techtextil North America is a very important show for us because technical textiles are a key pillar of our production programme,” Gesser concludes. “North America is one of our major markets and we are looking forward to reconnecting with existing and potentially new customers at this always-vibrant show.”

The Austrian specialist in plastics recycling systems and components, EREMA, has appointed a long-time employee as Global Sales Director: Christoph Wöss, previously Business Development Manager for the Bottle division, will take over the newly created position within the EREMA management team on April 1, 2025.

Christoph Wöss has been part of the EREMA Group for 24 years and possesses in-depth market knowledge. With his extensive experience, he is well-versed in the international markets and the specific requirements of the plastic recycling industry. In his new role, he will manage EREMA’s global sales activities and drive the company’s strategic development in the global market. In this context, Christoph Wöss will lead the international sales team and work closely with EREMA's global subsidiaries to strengthen the company's market presence.

From now on, Mehler Texnologies and Heytex will be known by the new name of MehlerHeytex. This name is a visible sign of the merger between the two companies and sets with greater innovation strength new standards for customers and other business partners.

MehlerHeytex brings together Mehler Texnologies and the core business of the Heytex Group, both leading global specialists for coated technical textiles. With some 1,000 employees at the production locations in Germany, Czech Republic and China, as well as sales offices worldwide the company serves numerous markets. MehlerHeytex products are used, for example, in truck tarpaulins and container covers, door seals, biogas membranes, drinking water tanks, tents, inflatable boats, as well as advertising media in large-format digital printing.

Freudenberg Performance Materials Holding GmbH, the parent company of Mehler Texnologies, acquired the core business of the Heytex Group in December 2024. Since then, this part of Heytex with three production locations in Germany and China, as well as all headquarter-related functions, belong to MehlerHeytex, the newly-formed specialist for coated technical textiles.

“The standardized market presence is an important step towards more clarity and transparency for our customers and other business partners. It represents the best of two worlds. We continue to work at top speed on the merger of Mehler Texnologies and Heytex, so that our customers can benefit from all the advantages of this acquisition as quickly as possible,” Dr. Henk R. Randau, Senior Vice President Coated Technical Textiles, said.

For the time being, the new corporate brand is the only change for customers and other business partners of the coated technical textiles specialist. All other aspects of business relations such as contacts, addresses and banking details remain unchanged for the present. The further merging of the two companies will take place step-by-step. MehlerHeytex will keep its customers and business partners continuously updated on relevant changes.

Increasingly weaker demand from key sales markets over the course of 2024 is slowing SGL Carbon's sales and earnings growth. Group sales in 2024 amounted to €1,026.4 million, down slightly by 5.8% on the prior-year level (2023: €1,089.1 million). The group's adjusted EBITDA decreased by 3.3% to €162.9 million (2023: €168.4 million).

Despite the slight decline in sales, the adjusted EBITDA margin improved from 15.5 % in the previous year to 15.9 % in 2024. This is mainly due to positive price and product mix effects.

Declining demand from the key semiconductor and automotive markets, coupled with persistently unsatisfactory demand from the wind industry, led to a decrease in volume and sales in three of four business units. Only Process Technology was able to improve its sales and adjusted EBITDA.

Earnings performance in the past fiscal year was strongly affected by non-recurring items of minus €118.5 million (2006: minus €52.9 million). These mainly included the impairment of assets of the Carbon Fibers business unit totaling €91.2 million (previous year: €44.7 million) and expenses from restructuring measures in the Carbon Fibers and Battery Solutions business lines totaling €19.0 million. After deducting one-off effects and non-recurring items as well as depreciation and amortization of €58.7 million (2023: €58.9 million), EBIT amounted to minus €14.3 million in 2024 (2023: €56.6 million).

Taking into account the financial result of minus €32.6 million (2023: minus €34.2 million) and tax expenses of €32.5 million (2023: €19.3 million), SGL Carbon recorded a net loss of €80.3 million (2023: net profit of €41.0 million) despite the solid overall business performance.

In 2024, the Carbon Fibers (CF) business unit's sales continued to decline, decreasing by 6.7% to €209.8 million (2023: €224.9 million). The decline was due in particularly to the continued low demand from the wind industry and the increasing competitive headwind resulting from global overcapacity for textile and carbon fibers.

Adjusted EBITDA in the Carbon Fibers business unit decreased by €18.2 million year-on-year to minus €11.0 million (2023: €7.2 million). The lack of fixed cost absorption led to high idle capacity costs and combined with declining margins for our fiber products, had a negative impact on adjusted EBITDA. It should be noted that the Carbon Fibers business unit included the result of the equity accounted activities (mainly the joint venture Brembo SGL Carbon Ceramic Brakes, BSCCB) in the amount of €15.8 million (2023: €18.3 million). Excluding the contribution from the equity-accounted BSCCB, the adjusted EBITDA of Carbon Fibers would amount to minus €27.0 million (2023: minus €10.9 million).

In February 2025, as part of the review of all strategic options for the Carbon Fibers, a decision was made to extensively restructure the Carbon Fibers business unit, which also includes the closure of unprofitable business activities. A complete sale of the Carbon Fibers activities was reviewed and is currently not considered feasible.

In the reporting period, sales in the Composite Solutions (CS) business unit amounted to €124.6 million, down 19.0% (2023: €153.9 million). The decline was due in particular to the premature expiration of a significant project-related supply contract with an automotive customer.

As a result of lower volumes and product mix effects, CS's adjusted EBITDA decreased by €4.0 million or 18.0% year on year to €18.2 million (2023: €22.2 million). It should be noted that the adjusted EBITDA includes a compensation payment of €3.0 million for a prematurely terminated customer contract. The adjusted EBITDA margin remained almost constant at 14.6% compared to the previous year (2023: 14.4%).

Forecast
For the year 2025, SGL Carbon expects different but overall challenging developments in their key sales markets. For the semiconductor industry and in particular for silicon carbide-based semiconductors, the demand is expected to remain moderate. The main reasons are lower than originally forecast growth rates for electric vehicles and continued high inventories at our customers site. At the earliest, demand could pick up in the second half of 2025. The company also expects a high degree of uncertainty combined with lower momentum for the automotive market segment.

The forecast for the current fiscal year 2025 takes into account all four operating business units, as they are still in the early stages of restructuring our Carbon Fibers business. Based on their assumptions regarding the development of the key sales markets, the managers expect consolidated sales for fiscal year 2025, including all business units, to be slightly below the previous year (2024: €1,026.4 million).

Taking into account all four operating business units, an adjusted EBITDA in 2025 is expected to range between €130 million and €150 million. Furthermore, the assumption is that the free cash flow at the end of the 2025 financial year - excluding payments for the planned restructuring of the CF - will be below the previous year's level but still positive (2024: €38.7 million).

Restructuring Carbon Fibers
On February 18, 2025, the Board of Management of SGL Carbon announced a restructuring of the loss-making CF business unit. This includes a significant reduction of CF's business activities and a focus on a profitable core. SGL Carbon's group sales guidance for 2025 excluding the expected sales contribution from CF would be approximately €200 million lower. On the other hand, the adjusted EBITDA for the remaining businesses excluding the operating adjusted EBITDA of CF would be between 155 – 175 million €.

“In the coming months, our work will focus on restructuring the carbon Fibers business unit and safeguarding our profitability. This includes focusing on new sales opportunities to further utilize our production capacities and strict cost management. The major trends such as digitization, climate-friendly transportation and renewable energy sources remain intact and are the drivers for our key sales markets. SGL Carbon will benefit from these trends and the associated growth opportunities in the medium and long term,” explains Andreas Klein, CEO of SGL Carbon SE.

The Lenzing Group, a provider of regenerated cellulose fibers for the textile and nonwoven industries, continued to improve its business performance in 2024 despite the expected slow market recovery. While Lenzing was able to significantly increase its sales volumes, the price level remained below that of the previous year. Logistics costs have risen significantly, and raw material and energy costs also remained high.

Revenue grew by 5.7 percent year-on-year to EUR 2.66 bn in 2024, mainly reflecting a higher level of revenue generated from fibers (+10 percent). The positive effects of the holistic performance program were the main factor driving the operating earnings trend. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 30.4 percent year-on-year to EUR 395.4 mn in 2024. The EBITDA margin increased from 12.0 percent to 14.8 percent. The operating result (EBIT) amounted to EUR 88.5 mn (compared with minus EUR 476.4 mn in 2023) and the EBIT margin stood at 3.3 percent (compared with minus 18.9 percent in 2023). The result before tax (EBT) amounted to minus EUR 42.0 mn (compared with minus EUR 585.6 mn in 2023).

Outlook
The IMF recently slightly upgraded its growth forecast for 2025 to 3.3 percent, but emphasizes the continued high extent of variation between regions as well as the high level of uncertainty. The latter is mainly due to geopolitical tensions, increasing protectionist tendencies, and a potential return of inflation.

In times of uncertainty, consumers are remaining cautious and thrifty, which is exerting a negative impact on consumer sentiment and on their propensity to spend.

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

In the trend-setting market for cotton, analysts anticipate a slight increase of stock levels to around 18.7 mn tonnes in the current 2024/2025 harvest season, following a reduction of 0.9 mn tonnes in the previous season, according to preliminary estimates.
Earnings visibility remains limited overall.

Lenzing is still ahead of schedule with the implementation of the performance program. The company expects that the measures will also contribute to further earnings improvement in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group expects EBITDA to be higher in 2025 than in the previous year.
In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also the further expansion of its market leadership in the sustainability area.