From the Sector

• Revenue up 9.4 percent to EUR 1,726.6 mn
• EBITDA improvement of 23.9 percent to EUR 397.1 mn
• Retail bond of EUR 120 mn redeemed – Lenzing with net liquidity as at end of September
• State-of-the-art application innovation center opened in Hong Kong

Lenzing – The Lenzing Group generated a substantial increase in revenue and earnings in the first nine months of the 2017 financial year compared to the prior-year period. The company is continuing the implementation of its Group strategy sCore TEN in order to further expand the offering of specialty fibers and be even closer to its customers and business partners.

Consolidated revenue climbed 9.4 percent year-on-year to EUR 1,726.6 mn. This increase is mainly attributable to higher prices for all three fiber generations. Consolidated earnings before tax, depreciation and amortization (EBITDA) rose 23.9 percent to EUR 397.1 mn, corresponding to an EBITDA margin of 23 percent, up from 20.3 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 34.6 percent to EUR 298.4 mn, resulting in a higher EBIT margin of 17.3 percent (Q1-3 2016: 14 percent). The profit for the period improved by 35.3 percent to EUR 219.3 mn, and earnings per share rose 36 percent to EUR 8.12 per share. In September Lenzing redeemed the retail bond of EUR 120 mn. At the end of the reporting period the Group had net liquidity of EUR 16.9 mn.

“In the first three quarters of 2017, we successfully captured value in a very positive market environment and we continue to implement the sCore TEN strategy with great discipline. The opening of our new application innovation center in Hong Kong is an important step to boost our regional innovation capabilities. We were particularly proud to launch TENCELTM Luxe as a sign of Lenzing’s ongoing commitment to innovation and sustainability”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “After three excellent quarters we are confident to deliver substantially better operating results in 2017 compared to 2016, but at the same time we do expect more headwinds in 2018.”

Focus on customer intimacy

In September 2017, the Lenzing Group opened a new application innovation center (AIC) in Hong Kong, thus setting a further milestone in strengthening its innovation offering to all partners along the value chain. New applications for Lenzing fibers will be developed and tested at the new facility, among them applications for recent innovations such as the TENCELTM Luxe branded lyocell filament, the RefibraTM branded lyocell fiber and the EcoVeroTM branded viscose fiber.

Furthermore, new sales and marketing offices were opened in Turkey and South Korea in the first half of 2017. The direct contact to customers and well-equipped showrooms featuring products made of LenzingTM fibers serve as the basis for providing even better customer support.

Investment program in progress

The Lenzing Group aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020. Following the capacity expansion initiatives in Heiligenkreuz (Austria) and Mobile, Alabama (USA) which are both underway, Lenzing announced its intention to construct the next plant to produce TENCEL® fibers in Thailand.

A new era of sustainable production

In October 2017, the Lenzing Group presented a new product, TENCELTM Luxe, at an exclusive event held in Paris. The TENCELTM Luxe branded filament yarn represents Lenzing’s entry in the filament market. This fiber will support the Lenzing Group’s path towards becoming a true specialty player in the market for botanic materials derived from the sustainable raw material wood.

The launch volumes of TENCELTM Luxe are being produced at the Lenzing site. The basic engineering for a commercial scale plant was commenced.

Outlook
Demand development on the global fiber market remains positive within the context of a generally friendly macroeconomic environment. Lenzing expects wood-based cellulose fibers to grow at an even higher rate than the overall fiber market. After three excellent quarters, the Lenzing Group will achieve an operating result in 2017 that is significantly better than 2016.

For 2018, Lenzing sees a number of somewhat opposing factors that limit visibility regarding fiber price developments. Overall market demand is expected to remain high. However, the Group expects a substantial increase on the supply side, especially for viscose but also for cotton. Price trends for selected key raw materials, especially caustic soda, are difficult to predict. Against this background the Lenzing Group expects a much more challenging market environment for standard viscose during the upcoming quarters.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. The Group initiated its transformation from a volume-oriented viscose player to a value-oriented specialty fiber player at the end of 2015, and will continue the disciplined implementation of its business strategy.

• Lectra’s latest PLM solution selected by Jinfa Labi to improve its product development process through supply chain digitization

Paris – Lectra, the world leader in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials, is pleased to announce that Jinfa Labi, one of the first publicly listed maternity and infant clothing companies in China, has chosen Lectra Fashion PLM 4.0 to help digitally transform their supply chain, making it more efficient, integrated and connected.

Spurred by the continued growth of the Chinese economy, young Chinese parents are now demanding maternity and baby products that are more personalized and sophisticated in terms of material and design. To meet these new market needs, Jinfa Labi has chosen to implement Lectra Fashion PLM 4.0 after researching on all PLM vendors in the market. With the help of this solution, the company aims to further improve their product development process by digitizing their entire supply chain, from design to production, enhancing business agility and collaboration. By embracing digitalization, the company hopes to make progress in adopting the government initiative “Made in China 2025”.

Lectra’s ultimate collaborative platform—Lectra Fashion PLM 4.0—gives fashion and apparel companies the extra speed and agility they need to tackle the challenges of Industry 4.0 head on. With the widest functional scope on the market, this technology serves as the intelligent backbone for the digital supply chain, facilitating the entire design-to-production process. This ensures a consistent flow of error-free data between process, technology and people, thus enabling organizations to quickly adapt to different business models and keep pace with the latest trends.

“As one of the first domestic companies to engage in R&D, design, production and distribution of baby clothing, Jinfa Labi is now growing exponentially. We are looking for a partner with a worldwide perspective and in-depth knowledge on the industry’s best practices,” said Lin Ruowen, General Manager, Jinfa Labi. “And Lectra fits the bill. Their latest PLM solution connects CAD, industry-standard software, company IT systems and external suppliers together, allowing us to fully digitize our supply chain by covering all production stages. We can then focus on improving our core competencies.”

“We are confident that Lectra will help Jinfa Labi make their mark for “Made in China 2025”. This Industry 4.0-based initiative will not only revolutionize the way in which manufacturers operate but also change the way in which the brands and retailers run their businesses. Lectra is committed to providing the technology and support that our customers need to thrive in this new digital era,” said Andreas A. Kim, Managing Director, Lectra, Greater China. “Lectra Fashion PLM 4.0 is the only PLM solution purpose-designed for the fashion industry that covers the entire value chain. We hope to leverage our 44 years of experience in the fashion industry to help Jinfa Labi succeed through operational excellence.”
 

Bobingen - On the 4th October 2017 a new brand was introduced at Trevira: Trevira SINFINECO®. This label may be carried by all textiles that contain sustainable Trevira products. Sustainable, innovative, high-value and responsible – these are the values the new brand stands for.

As an industrial enterprise, Trevira is conscious of its special responsibility for an intact environment and has long advocated the recycling of valuable raw materials and waste products. Trevira CEO Klaus Holz: “We at Trevira wish to preserve the environment and at the same time work to create value. These are the criteria of our sustainability concept.“

Creation of the new brand is therefore only a logical step, one that enables customers to label their sustainable Trevira products as such. Trevira is known for the high quality of its products. In every way recycled products are as good as the original materials in terms of quality and performance.

Two vital elements in Pre-Consumer Recycling and an important concept in Post-Consumer Recycling form part of the sustainability strategy of Trevira to conserve resources and maintain value. :

In the area of Pre-Consumer Recycling, on the one hand, residual materials resulting from the manufacture of polyester fibres and filaments in Bobingen and Guben, dependent on the manufacturing step, are processed in the agglomeration plant and restored to become serviceable primary material. The recyclates are then fed back to our fibre and filament spinning mills, to be made into new top-quality products.

On the other hand, in fibre production there occurs in the manufacture of tow a small proportion of tow that cannot be used for converting and has to be cut out. Instead of selling this material as waste, it is cut up, pressed into balls and then carded / combed by a partner, resulting in a 1A quality product. The GRS certification (Global Recycled Standard) is requested for this. As with converter tow from new material, the recycled tow is mostly incorporated into polyester wool blends (55 % PET / 45 % wool), which are used primarily in corporate wear and uniforms.

In the area of Post-Consumer Recycling, Trevira offers filament yarns consisting of 100 % recycled PET bottles. Our parent company Indorama manufactures very high quality recycled chips from PET bottles. Since only transparent PET bottles are used in Thailand, the flakes and chips are of a particularly good and very uniform quality. The recycled chips, fibres and filaments from Indorama bear the GRS certificates (Global Recycled Standard) and RCS-NL (Recycled Claim Standard). Trevira processes the regranulate made by Indorama from bottle flakes into filament yarns consisting 100 % of recycled material. The filament yarns are available in titres 167 and 76 dtex normal polyester. Alongside technical applications, they are used in the automotive and apparel sectors. In addition, many promising developments with the recycled material are on their way.

The Industry of the Future Alliance (AIF) has awarded Lectra with their ‘Showcase for the Industry of the Future’ label for demonstrating the criteria exemplarity, innovation and commitment. This certification is given to companies who have concretely developed a ground-breaking project to organize their production by leveraging the potential of digital.

The AIF bestowed Lectra with this distinction for its competitiveness concerning cost, quality and delivery times, all obtained thanks to a lean approach and reflection around the design of its products. Further, Lectra received the certification for its competitiveness regarding value, achieved thanks to mastering customer use from which new associated services have flowed. Since 2013, Lectra has invested €86 million in R&D, representing 9.4% of its revenues. This Investment has enabled Lectra to undergo a metamorphosis—based on methodological advances and fundamental technologies—increasing recruitment and growing competitiveness in all of its markets and geographical sectors.

With ten years’ experience in the industrial internet of things for cutting and expertise in software Solutions to automate and optimize design and product development, Lectra is in an unrivalled position to Support customers as they enter the ‘industry of the future’ era.

Pressure from certain shareholders to relocate manufacturing to China in 2005, triggered Lectra’s industrial project. Following risk analyses—the cost of transport for the European market, the turnover in qualified labor, uncertainty over patent rights and quality—Lectra decided to keep manufacturing in France. This choice was conditional on: disruptive innovation; upgrading; increased value to customers; and a rise in productivity.

The project was accompanied by a well-structured lean approach and organizational changes, which enabled Lectra to achieve the desired level of excellence in terms of productivity and competitiveness.

Some of the changes that took place thanks to this project are as follows: Growth in industrial performance due to an improvement in working conditions, with teams involved in the lean approach; Production engineers involved in creating awareness around factory constraints for a new offer as early as the design process. This co-design product/process optimizes global costs; Emphasis on product, process and logistics’ modularity with the latest possible integration of options (delayed differentiation). This enables logistics’ constraints to be taken into account as early as the engineering phase. Product modularity allows, for example, machines to be put in containers when they might otherwise require special heavy-goods transport.

Lectra’s factory improved its productivity rate by 18 points in three years, and has since maintained it at 89%. Costs have already reduced by 25% and the quality and level of service has improved. In terms of positioning, Lectra has confirmed its leadership in the high-end segment. Lectra has enriched its offer with end-to-end services and innovative, connected products whose embedded intelligence offers Smart Services, notably for predictive maintenance.

Color Solutions International, a member of the DyStar Group is launching their Color Analysis for Spring/Summer 2019. Color Analysis is CSI’s trend forecasting magazine that provides high-level global color trend information for color managers, directors and designers to support the color palette development process. It contains a forecast of key colors, accents and core neutrals that will be most relevant for the upcoming seasons. The forecast is based on consumer reports, detailed market research, current social trends and generational mindsets. Every issue features an artist who influences and inspires forward thinking.

The magazine includes a seasonal color palette selected from a wide range of approximately 9,000 CSI colors. The color palette is also available as cotton swatches sold on a ring. Part of the CSI service offering is to provide color direction based on a wide scope of palette searches as well as validated color use. Every issue will include an exclusive Relative Color Popularity (RCP) report, which provides color validation based on seasonal color palette usage by comparing similar hues.
CSI and DyStar support brands, retailers and their business partners from development to production. The CSI and DyStar team of experts work together and assist their customers in color development, communication as well as in the dyeing and quality inspection process to achieve best possible results and sustainable fashion. All CSI products are produced with high-quality, eco-friendly DyStar colorants.
“The Color Analysis Magazine is an important feature of our service for designers, offering them competitive color trends for upcoming seasons. At CSI, we are here to assist with color selections and provide all the necessary tools needed for a successful seasonal palette.” -CSI Color and Trend Director.

ILUNA Group and ROICA™ continue their close partnership to present the most “advanced” and responsible innovations to the market today. ILUNA GREEN LABEL lace collections made with premium stretch thanks to the use of the unique ROICA ™ Eco Smart GRS certified family- now offer the next evolution: a new stretch Galloon lace to be combined with mesh and lace fabrics collections, now fully made with GRS certified materials. This new evolution offers the right choice to contemporary consumers in products that are beautiful, high quality and sustainable.
This is in addition to a decision last year when the ILUNA GROUP converted all their stretch yarn exclusively to the unique ROICA™ Eco Smart family for all of its top of the range jacquardtronic and Textronic articles.
To reinforce this commitment, ILUNA can also celebrate its new STeP (Sustainable Textile Production) certification by Oeko-Tex, a certification that clarifies and communicates the company’s sustainable production commitment regarding manufacturing and processing to all its partners and customers in a transparent, clear manner.
Fashion & ILUNA feature on the catwalk in Paris with the ‘Momenti Di Passione’ fashion show at the Interfiliere salon on 8th to 10th July. Here you will be able to enjoy a dazzling and exciting new range of bold ECO flocking beachwear & cover up.
And at the show, breakthrough fabric designs from ILUNA show a revolutionary quality in the new Burano collection: a range of decorative, macramé precious pattern effects that are diaphanous and semi-sheer styles that use at their heart the ROICA™ Eco Smart premium stretch family exclusively.

Offering continuous process improvement for automated leather cutting, Versalis LeatherSuite V6 is a step toward an Industry 4.0-ready cutting room for makers of leather vehicle seating and interiors and leather furnishings. The new version of Versalis LeatherSuite enables companies to boost productivity, achieve exceptional cut quality and expand data monitoring capabilities. With Versalis LeatherSuite V6, furniture manufacturers can increase productivity by up to 6%, while automotive suppliers can increase theirs from 8% to 15%.
Versalis LeatherSuite V6 delivers greater precision than ever before for superior leather cutting quality. For that purpose, the new software suite embeds enhanced cutting algorithm addressing latest challenges faced by furniture and automotive customers.
The latest Versalis LeatherSuite’s expanded capabilities also enable manufacturers to manage a wider range of production indicators throughout the cutting process. Developed with the input of Lectra’s automotive and furniture customers, the latest version of the Versalis software suite offers enriched data for process optimization and streamlined execution, enabling manufacturers to reach operational excellence objectives and monitor production. LeatherSuite also empowers manufacturers with decision support, through customizable reports highlighting key performance indicators. Accurate and reliable analyses can be viewed at a glance thanks to the suite’s built-in data modeling.
“With this release, Lectra marks a milestone in terms of customer experience and productivity,” states Céline Choussy Bedouet, Chief Marketing and Communications Officer, Lectra. “Versalis LeatherSuite V6 is the technology enabler that allows producers of cut leather parts to leverage maximum performance from the Versalis cutting room solution.”

With digitalization transforming the way consumers shop, today’s fashion companies are playing a neverending game of catch-up, as they compete for the attention of a generation of connected, fickle-minded millennials who want it all: personalization, sustainability, quality and speed, accessible at all times, across multiple channels, and at the lowest price. Industry 4.0 is not only revolutionizing how manufacturers operate, but also how brands and retailers need to function, if they want to be fast and agile enough to meet the needs of this demanding new consumer. The stakes are high and how effectively companies harness technology to put the consumer at the heart of their process will be the deciding factor in who comes out ahead and who gets left behind.

Lectra Fashion PLM 4.0 has undergone a drastic reboot to give fashion and apparel companies the speed and agility they need to tackle the challenges of Industry 4.0 head on. Lectra Fashion PLM 4.0, with the widest functional scope on the market, acts as an intelligent nerve center to the digital supply chain, from planning through design to production. This ensures a consistent flow of error-free data between processes, technologies and people. The system connects CAD, industry-standard software such as Adobe Illustrator, company IT systems (such as ERP) and external suppliers, so that actors across the supply chain can work on, save and share information on the platform, ensuring data integrity.
The solution also draws on best practices, fashion-business intelligence and real-world scenarios to automate administrative and repetitive tasks, with templates, standard libraries and shortcuts that allows more time for value-added activities. The final result is a fast, connected digital supply chain that helps fashion companies jump on trends quickly and deliver products that fulfill their customer’s expectations.

Compared to the past years we are a little late in advertising the upcoming 13th China International Recycled Polyester Conference & Exhibition in Shanghai at September 05 – 06, but as during the past twelve years we are expecting again an succesful international event with a large number of Mainland Chinese and Oversees delegates, speakers, exhibitiors and sponsors. The Conferece venue is the Holiday Inn Shanghai Hongqiao this year, which is located near the Hongqiao Airport and so about 30 min by car from the city and 15 min walking distance to the subway No. 6. With a production of about 8 Mio t/a the Chinese polyester recyclers are producing all kind of textile intermediates like staple fiber, POY, DTY, FDY, BCF, technical yarn and spunbond products based on mainly PET bottle flakes. Meanwhile also bottle-to-bottle and bottle-to-film or strapping technology is on the way. Therefore conference and exhibition are an ideal meeting place for those who are involved in the whole production chain including engineering and equipment manufacturer. Very interesting will be discussion and latest information about the impact of new governmental action to improve environmental standards. This new development might be of importance especially for those who are involved in raw material sourcing.

Pilatus is displaying the PC-24 at the European Business Aviation Convention and Exhibition, taking place in Geneva on May 22-24. This highly versatile jet is able to take off and land on very short runways and unpaved strips due in part to the composite-intensive structure, which makes great use of Hexcel’s composite materials and adhesive.

Hexcel’s HexPly® 8552 woven prepreg in carbon and glass variants is used to manufacture a number of the aircraft components including the belly fairing, which is the largest composite structure on the aircraft. HexPly® 8552 is one of Hexcel’s most successful and widely used prepregs for aircraft programs including commercial aircraft and fighter jets. Hexcel’s Redux® 319 epoxy film adhesive is also used for bonding the composite structures. The PC-24 is in the final stages of its certification program following the first flight of the third and final test aircraft on March 6 2017. The aircraft is scheduled for certification and entry into service in the 4th quarter 2017. Pilatus has so far secured 84 orders for the PC-24, which equates to three years of production.