From the Sector

Technologies with an excellent environmental performance throughout the entire product life cycle – that is what “Autoneum Pure.” stands for. In future, components that meet the highest standards in terms of sustainability and eco-friendliness can be identified at a glance under this label. This also includes the innovation “Mono-Liner” for wheelhouse outer liners.

As innovation leader in acoustic and thermal management, Autoneum continuously invests in the development and production of resource-saving components that make cars lighter and thus more climate-friendly. In view of an increasing sustainability awareness and the correspondingly greater information needs on environmentally-friendly vehicle components, the Company has now launched Autoneum Pure. The label determines particularly sustainable technologies, thereby guiding car manufacturers in product selection for future models.

Autoneum Pure is based on a comprehensive set of criteria assessing the sustainability performance of a product in all four phases of its life cycle: material procurement, production, use and end of life. For example, components with a high content of recyclable materials or those that achieve significant weight savings compared to comparable standard components qualify for the “Autoneum Pure.” label. Autoneum already offers various multifunctional technologies that meet the high standards for Autoneum Pure products: Ultra-Silent for underbody systems or battery undercovers, Di-Light for carpet systems, Prime-Light and IFP-R2 for inner dashes and floor insulators as well as Hybrid-Acoustics PET for e-motor encapsulations and engine-mounted parts, which was launched in fall 2019.

With Mono-Liner, the latest innovation for wheelhouse outer liners is also included in the Autoneum Pure portfolio. Among other things, the Mono-Liner-based components convince thanks to their lightweight construction, thereby contributing to lower vehicle weight with correspondingly less fuel consumption and emissions. The excellent life cycle assessment is also based on their particularly resource-saving manufacturing: Production cut offs of the components, which consist to a large extent of recycled PET fibers, can be processed into pellets and completely returned to the manufacturing process as fibers. An SUV and a crossover model from a US vehicle manufacturer already benefit from Mono-Liner wheelhouse outer liners.

Anahid Rickmann, Head of Corporate Communications & Responsibility, explains: “With Autoneum Pure we are the first automotive supplier to establish a sustainability label in the field of acoustic and thermal management. Autoneum Pure is part of the Company's Advance Sustainability  Strategy 2025 and sets industry standards in product communication.”

In these difficult times of the worldwide COVID-19 crisis, flexible reactions and fast decisions can be of imminent importance, particularly in the fragmented composite industry with its back-bone of small and medium-sized enterprises (SMEs).

In response, the Industrial and Business Consulting company AMAC under the lead of Dr. Michael Effing has signed today a cooperation agreement with Alpha Executive Advisory to jointly offer advisory services in Business Coaching, Acquisitions & Divestitures as well as Business Transformation and Crisis Management, also ad interim.

In detail, this cooperation is to identify the right fit in terms of capabilities and financial strength for companies looking for expansion or divestiture, to deliver support to innovative young start-up firms in order to faster penetrate the market and to smoothen the transition to the next owner in interim management or to make the next appropriate strategic step.

• Fiber prices and demand under pressure due to COVID-19 crisis
• Measures to maintain operations and to protect employees, customers and suppliers implemented successfully
• Hygiene competence center established to produce personal protective equipment in the fight against COVID-19 pandemic
• Strategic investment projects in Brazil and Thailand progressing according to plan
• Management Board proposes not to distribute a dividend for 2019 – AGM rescheduled for June 18, 2020

In a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis, the Lenzing Group held its ground well in the first quarter of 2020. Thanks to a diversified business model and its global footprint on the one hand, and the disciplined implementation of the sCore TEN corporate strategy on the other, the effect on the revenue and earnings development was partially offset.

In the first quarter of 2020, revenue declined by 16.7 percent in comparison with the prior-year quarter and amounted to EUR 466.3 mn. The main reason was the development of prices for standard viscose (due to significant overcapacity in the market) and other standard fibers. The impact of the COVID-19 crisis further increased pressure on prices and volumes. The prices for standard viscose dropped to a new all-time low of 9,150 RMB/ton by March 31 – up to 33 percent lower than in the prior-year quarter. The comparatively positive development of the specialty fiber business and slightly higher demand for fibers in the medical and hygiene segments partially offset the decline in revenue. The share of specialty fibers increased from 47.3 percent in the first quarter of the previous year to 60.9 percent. The earnings development reflects the decline in revenue: EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 24.3 percent to EUR 69.6 mn. The EBITDA margin declined from 16.4 percent to 14.9 percent. Net profit for the period was down 58.6 percent to EUR 17.7 mn. Earnings per share amounted to EUR 0.84 compared with EUR 1.65 in the first quarter of the previous year.

• Expanding global textile and polymer business

SANITIZED AG announces that it has entered into an agreement with Consolidated Pathways Inc. Midland, Michigan USA to globally promote the Sanitized® odor-management, hygiene function and material protection technologies to brands and retailers. Consolidated Pathways will also support the advancement of the trusted Sanitized® Quality Seal and related branding concepts. The longtime co-operation between SANITIZED AG and ARCHROMA remains unchanged and is supported by the activities of Consolidated Pathways.

Consolidated Pathways acts as global brand and technical representative for the Sanitized® line of antimicrobial products. Consolidated Pathways will be focusing on commercializing Sanitized® products in textiles and will use its broad experience in polymer-based antimicrobials to extend the reach of the unique technologies that SANITIZED AG offers.

Consolidated Pathways, Inc is based in Midland, Michigan USA. The Principals of Consolidated Pathways have over two decades of experience with commercializing polymer-based antimicrobials and sustainable surface modification technologies.

• New human-machine interface brings smart features to tissue operations

Paper Converting Machine Company (PCMC), part of Barry-Wehmiller, has launched Smart TOUCH HMI, a new human-machine interface available on Forte tissue converting lines.

Following high-performance design principles, PCMC’s Smart TOUCH HMI offers users a clean, modern interface and enhanced help features. The smart analytic capabilities are aimed at providing customer insights to improve overall equipment effectiveness. The Smart TOUCH HMI works much like today’s mobile devices with swipe functionality, enabling a short learning curve and increased productivity.

“We designed our new HMI with operators in mind,” said Jason Hilsberg, PCMC Tissue Sales Director. “PCMC is always working to improve the capabilities and features of our machines for our customers, and more specifically, to enhance the experience of the operators. With simplified controls and navigation, robust help functions and easy recipe management, this new design will provide operators with a more efficient process to keep tissue operations running quickly and smoothly.”

• All motions approved
• Dividend of CHF 4.50 agreed
• COVID-19

In relation to participation in the Annual General Meeting on April 16, 2020, the Board of Directors of Rieter Holding Ltd. arranged exclusively written or electronic voting and the granting of power of attorney to the independent proxy. In taking this approach, the Board of Directors relied on Article 6a, lit. b of Ordinance 2 of the Swiss Federal Council (Measures to Combat the Coronavirus of March 16, 2020). Physical participation by the shareholders was therefore not possible. The Annual General Meeting was held on the premises of Rieter Holding Ltd. at the company’s headquarters in Winterthur.

At the Annual General Meeting of Rieter Holding Ltd. on April 16, 2020, the independent proxy represented a total of 2 025 shareholders who hold 64.3% of the share capital.

A dividend of CHF 4.50 per share was agreed. The shareholders approved the proposed maximum total amounts of the remuneration of the members of the Board of Directors and of the Group Executive Committee for fiscal year 2021.

The Chairman of the Board, Bernhard Jucker, and the members of the Board of Directors This E. Schneider, Michael Pieper, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for an additional one-year term of office.
Furthermore, This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Shareholders also adopted all other motions proposed by the Board of Directors, namely approval of the annual report, the financial statements and the consolidated financial statements for 2019, and formal approval of the actions of the members of the Board of Directors and those of the Group Executive Committee in the year under review. In addition, the authorized capital was extended for a further two years.

COVID-19
At present, it is not possible to predict how the global COVID-19 pandemic will affect Rieter’s sales and earnings in the first and second half of 2020, and thus also for 2020 as a whole.

Rieter therefore refrains from providing an outlook for financial year 2020 and will issue the relevant information as part of the semi-annual report on July 16, 2020.
The company has taken the necessary measures to protect employees and to meet commitments to customers as far as possible.

Thanks to long-standing customer relationships, a focus on innovation, global positioning and the company’s financial stability, Rieter will successfully overcome the challenges.

Pinko is glad to announce that its Chinese subsidiary, Cris Conf Retail, received from the highest office in the Shanghai municipality the “Shanghai Multinational Company Headquarter” certification.

At the presence of Shanghai mayor, Gong Zheng, Cris Conf Retail obtained this status thanks to its investment projects for the creation of a central headquarter in the Chinese city, which will be the primary hub for the management and commercial development of Pinko’s operations across the Asian market. Through this important recognition, Pinko and its parent company Cris Conf confirm the strategic importance of the Chinese market in the brand’s global internalization process.

Thanks to the “Shanghai Multinational Company Headquarter” certification, Pinko will have access to a range of benefits in China, including facilitated import and custom procedures, as well as expedited clearance for the company’s staff upon arrival in China and a direct channel of communication with Chinese national offices.

Pinko currently operates 72 stores in China, located in the most important cities and at the most prestigious malls and department stores.

Rest of the Mills to Complete Assessments and Comply by 2023

Sateri’s mill in Fujian, China, has been verified to comply with the European Union Best Available Techniques (EU-BAT) standard. Verified by independent consultant Sustainable Textile Solutions (STS), a division of BluWin Limited (UK), the parameters of the standard assessed included resource utility efficiency, wastewater discharge and air emission.

In the assessment report, STS noted that all of Sateri Fujian’s mill parameters assessed were within the range of EU-BAT limits. Notably, its energy intensity, sulphur to air, and chemical oxygen demand (COD) were well under EU-BAT norms. With the use of cutting-edge technologies for air emissions control, the total sulphur recovery rate is over 98%. Sateri Fujian accounts for over 20% of Sateri’s annual total production capacity.
The compliance with EU-BAT standard comes on the back of several key manufacturing and product related industry certifications and standards which Sateri has attained. These include OEKO-TEX®’s MADE IN GREEN, STeP, and STANDARD 100. Sateri is one of the world’s first viscose producers to complete the Higg Facility Environmental Module (FEM) 3.0 assessment. Sateri is also part of the multi-stakeholder Zero Discharge of Hazardous Chemicals (ZDHC) manmade cellulose fibre working group, which is developing guidelines to reduce environmental emissions. As a founding member of the Collaboration for Sustainable Development of Viscose (CV), Sateri is supporting the development of CV’s 2025 Roadmap which considers industry best management practices and global certification standards.

The previously communicated targets for 2020 are unlikely to be achieved due to the COVID-19 pandemic

The Board of Management of SGL Carbon SE determined today, that the forecasted results for the fiscal year 2020 are unlikely to be achieved due to the global COVID-19 pandemic. In light of the substantial uncertainty regarding the duration and the consequences of the COVID-19 pandemic, the Board of Management is currently unable to provide a reliable sales revenue and earnings forecast for the current year. Consequently, the guidance for 2020 is suspended. 

The previous expectation, which guided for a slightly lower sales revenue und a recurring EBIT1 approximately 10-15% below the prior year (sales revenue 2019: €1,087m; recurring EBIT 2019: €48m), was already made conditional by the Board of Management in the management report published on March 12, 2020, that negative effects from the coronavirus were not included, as the outbreak at that time was mainly restricted to China and Italy. In the meantime, numerous other governments have introduced far-reaching measures with substantial limitations on the public and economic sectors and leading economists now forecast significant reductions in economic output in key economies. 

The Board of Management of SGL Carbon has introduced and partially already implemented comprehensive measures to reduce the cost base and to secure liquidity. These measures include the introduction of short-time work, reduction of material and indirect spend, as well as further reduction resp. postponement of capital expenditures. In addition, we are exploring further financing options independent of the capital markets, some of which are already in preparation. The Company is intensively working on identifying and mitigating potential risks. 

All proposals submitted by the Board of Directors were approved at the Annual General Meeting of Autoneum Holding Ltd. In view of the net loss in the 2019 financial year, a dis-tinct majority of shareholders agreed to the proposal to forgo a dividend payment.

In consideration of COVID-19 Ordinance 2 of the Federal Council, no shareholders were admitted to physically attend the Annual General Meeting on site. The Company therefore requested the shareholders in advance to transfer their votes to the independent voting proxy. He represented 59.8% of the total 4 672 363 shares issued.

The shareholders approved the 2019 Annual Report including the consolidated and annual finan-cial statements. Given the significant net loss in the 2019 financial year shareholders approved the proposal submitted by the Board of Directors to forgo a dividend. Hans-Peter Schwald, Chairman of the Board of Directors, stressed: “Autoneum aims to distribute at least 30% of net profit attributable to Autoneum shareholders as dividends. Unfortunately, Autoneum did not generate a profit in 2019, mainly due to impairments. This development is unacceptable for both, the Group Executive Board and the Board of Directors, and together with the employees we are doing every-thing possible to get back on the road to success. Nevertheless, the Board of Directors and the Group Management will continue to adhere to their long-standing dividend policy and thus ensure that shareholders participate appropriately in the Company's success.”

Chairman Hans-Peter Schwald and the other members of the Board of Directors, Rainer Schmückle, Norbert Indlekofer, Michael Pieper, This E. Schneider, Peter Spuhler and Ferdinand Stutz, were confirmed in office. This E. Schneider, Hans-Peter Schwald and Ferdinand Stutz were also re-elected to the Compensation Committee. In addition, a large majority of the shareholders of Autoneum Holding Ltd gave formal discharge to all members of the Board of Directors and the Group Executive Board.

The consultative vote on the 2019 remuneration report was approved by 89.2%. The proposals for the remuneration of the Board of Directors and the Group Executive Board for the 2021 financial year as well as the other proposals were also approved by a large majority.