From the Sector

The coronavirus pandemic and its massive impact on the automotive industry led to an un-precedented market slump in the first half of 2020 and a corresponding revenue decline at Autoneum. Revenue in local currencies fell by –32.7% compared to the prior-year period, and in Swiss francs by –36.8% to CHF 730.6 million. The turnaround program for the North American sites made further progress in the first six months and is showing the targeted results. However, they were clearly overcompensated by the massive impact of the corona-virus crisis, which led to a negative net result of CHF –54.9 million despite comprehensive cost flexibilization measures.

Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production completely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

 Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production com-pletely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

Autoneum promptly responded to the pandemic-related market slump by adopting extensive cost-cutting measures in all regions. These include the reduction of employee costs by, among other things, adjusting time accounts, introducing short-time work at eligible locations and temporary layoffs as well as headcount reduction, mainly among temporary workers. In addition, operating expenditures were limited to the absolutely necessary. The investment volume for 2020, already reduced from previous years, was downsized even further. Autoneum continues to benefit in this regard from the high level of investments undertaken in recent years.

 Although the coronavirus crisis and the measures taken to contain it dominated Autoneum’s course of business in the first half of 2020, the Company achieved necessary operational and financial im-provements during this period. The comprehensive turnaround program for the North American sites made further progress and is on track. Efficiency improvements already achieved there had a posi-tive effect on the figures of the first half-year, but were significantly overcompensated by the substan-tial impact of the COVID-19 crisis. Savings and cost flexibilization measures taken immediately and implemented worldwide in view of the revenue loss could not offset the ongoing, capacity-related fixed costs. This led at the Group level to a negative EBIT of CHF –31.8 million (prior-year period: CHF 16.4 million), which equates to an EBIT margin of –4.4% (prior-year period: 1.4%). The net result decreased because of the severe revenue shortfall to CHF –54.9 million (prior-year period: CHF –6.0 million).

Outlook
For 2020 Autoneum expects revenue to develop at market level. Although customers’ production volumes should increase again in the second half of 2020 compared with the first semester, latest fore-casts indicate that they will remain clearly below the level of the second half of 2019. Immediately implemented and ongoing cost reduction measures as well as further operational optimizations also within the turnaround program in North America will lead to improvements in the second half of the year. Due to the current uncertainties, a reliable statement on the net result for the full year 2020 thus cannot be made. With regard to the mid-term targets, a recovery of the profitability level is expected, but it will largely depend on the market development.

• With shop.hygiene-austria.at, quick access to MNS, FFP2 and child masks “made in Austria” is guaranteed.

Wiener Neudorf – Hygiene Austria LP GmbH has become known for its locally produced mouth-nose protective masks, FFP2 and children's masks during the COVID-19 crisis. The company is now well prepared for the reintroduction of the mask requirement. “Especially in times of a pandemic, it is important to us at Hygiene Austria to make a contribution to the security of Austrian supply”, said Stephan Trubrich, Managing Director of Hygiene Austria LP GmbH, confidently.

All interested parties who want to prepare for their purchases in the supermarkets or their visit to public facilities but also for their holiday trips can now purchase masks of different types at the following website: https://shop.hygiene-austria.at.

Messe Frankfurt India has announced new dates for the Mumbai edition of Screen Print India - the leading trade fair for screen, textile, sublimation and digital printing technologies The exhibition will be held in parallel with Gartex Texprocess India, from 19 – 21 March 2021 at the Bombay Exhibition Centre in Mumbai. With the gradual re-opening of commercial activities and businesses, the co-located fairs will enable the industry to channel their efforts back towards business development and cater to the needs of screen printing, textile and garment manufacturing industry players as it gears up to bring the production and manufacturing value chain under one roof.
 
While the focus segments under Gartex Texprocess India will draw attention to innovations in garmenting & apparel machinery, the product launches and live demos at Screen Print India will enable business visitors and traders to track technological advances in digital textile and screen-printing technologies. The secure, business-focused ambience will enable both printing and textile sector players to showcase, source and strengthen their supply chains and keep pace with the shifting demand for screen printing, textile printing, digital and sublimation technologies across other sectors.
 
Screen Print India will also host a series of sessions on processes and innovations related to the graphics industry. Another key highlight of this successful trade fair is the Screen Print Excellence Awards that upholds a strong tradition of honouring technology inventors and trailblazers within the screen-printing industry. With this in mind, the Mumbai edition will curate a special “SPI Gallery” to showcase award winning pieces of screen-printing excellence.

Carbon dioxide-based fibre for climate protection and interdisciplinary training with novel Smart Textiles test rig

The Wilhelm-Lorch-Stiftung, based in Frankfurt am Main, Germany, honours a project of the Institut für Textiltechnik of RWTH Aachen University, short ITA, and awards a sponsorship prize to the ITA graduate Ricarda Wissel on 25 June 2020. She is awarded for her outstanding bachelor thesis " Implementation of elastic yarns made from carbon dioxide based thermoplastic polyurethane in socks " with funding for a subject-specific continuation of her education. The ITA receives the project sponsorship prize for the project "Smart Textiles - an interdisciplinary training course to promote young scientists in future technologies", which was submitted to the Wilhelm-Lorch-Stiftung by ITA´s PhD candidate Simon Kammler.

Carbon dioxide-based fibre from industrial waste contributes to climate protection

ITA scientist Dr.-Ing. Pavan Manvi has developed a melt spinning process at ITA for the production of elastic yarn from thermoplastic polyurethane, in which carbon dioxide is used as one of the raw materials. In her bachelor thesis, Ricarda Wissel successfully developed a process chain for the CO2-based yarn in a textile end product for the first time. In cooperation with the company FALKE and Dr Manvi, who supervised Ms. Wissel's work, the yarn was used to produce a sock (see figure "FALKE sock with carbon dioxide filaments").

By reusing carbon dioxide from industrial waste as a raw material for textile and clothing products, the carbon dioxide balance can be improved and thus contributes directly to climate protection. The sponsorship prize of the Wilhelm-Lorch-Stiftung is endowed with 6,000 € for the specialist further training of Ms. Wissel.

Interdisciplinary training with development of a new type of measuring stand for the future-oriented research field "Smart Textiles

The development of textiles with additional digital functions, so-called "Smart Textiles", is considered a future-oriented field of research. In his project submission, ITA´s doctoral candidate Simon Kammler presented a concept for a lecture series on Smart Textiles at ITA and develops a new type of measuring stand for measuring the capacity and conductivity of fibres. The project is funded by the Wilhelm-Lorch-Stiftung with a prize money of 10,000 Euro.

Smart Textiles enable the textile to interact with the environment and the human user. Today they are therefore in demand in many areas of everyday life such as sport, health, living, life and mobility and offer completely new practical solutions. In combination with digital networked services, Smart Textiles promise support and innovation in almost all situations of daily life.

With the conception of a new lecture series, Mr. Simon Kammler is supporting ITA in its goal of providing the best possible training for young scientists. The focus is on imparting far-reaching interdisciplinary skills in order to master the challenges of current fields of research.

Background:

The Wilhelm-Lorch-Stiftung supports particularly talented young people from all areas of the textile industry. Its purpose is the promotion of subject-specific education and further education as well as the promotion of projects at universities, academic schools and vocational schools, which are characterised by the sustainable communication of innovative learning content in science and research. In total, thirteen sponsorship prizes were awarded in 2020. Due to the Corona crisis, the forum of TextilWirtschaft, which is normally the venue for the awards ceremony, unfortunately had to be cancelled in 2020.

• Since the end of March 2020, COVID-19 has led to very low demand in all Business Groups
• Comprehensive crisis management implemented
• Loss in the mid double-digit million range expected in the first half of 2020
• Plans to introduce short-time working to adjust capacity in Switzerland and Germany
• Strategy will continue to be implemented

Due to COVID-19, a large number of spinning mills have stopped production worldwide. Since the end of March 2020, this has led to low demand for spare parts and wear & tear parts and delays in testing programs during the development of new machines. Customers are postponing investment projects or unable to implement them due to restrictions imposed by national governments. This results in low demand for new machines.

Comprehensive crisis management
Rieter has implemented comprehensive crisis management. Priorities are being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide.
The order backlog of well in excess of CHF 500 million is being processed largely according to plan, despite the existing bottlenecks in the supply chains. Less than 5% of the orders in the order backlog have been canceled.
Rieter has already implemented measures to ensure liquidity and reduce costs. The company has good net liquidity and undrawn credit lines in the mid three-digit million range.
Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level.

Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level. The effects of COVID-19 will place an additional burden on the first half of 2020. Rieter therefore expects sales in the first half of 2020 to be less than CHF 300 million. Despite the countermeasures implemented at the net profit level, this will lead to a loss in the mid double-digit million range.

Plans to introduce short-time working to adjust capacity
Rieter plans to apply for short-time working for the areas with forecasted low capacity utilization at the locations in Switzerland and Germany. The application will be for 40% short-time working in the third quarter of 2020. Talks with staff representatives will begin next week.
As a sign of solidarity, Rieter’s Board of Directors, Group Executive Committee and the senior management will waive 10%-20% of their salaries temporarily.

Implementation of the strategy
In recent years, Rieter has consistently implemented the strategy based on innovation leadership, strengthening the business in components, spare parts and services and the adjustment of cost structures. The company intends to forge ahead with the implementation of the strategy in the coming months, thus strengthening its market position for the time after the COVID-19 pandemic.
The next information on the course of business is planned with the publication of the half-year results on July 16, 2020
 

Center of competence for hygiene established in Wiener Neudorf to support Austria and the EU in the Covid-19 crisis for the industrial production of high-quality protective masks with a monthly capacity of 12 million pieces.

Lenzing AG and Palmers Textil AG found “Hygiene Austria LP GmbH”, in which Lenzing AG holds 50.1% and Palmers Textil AG 49.9%. The newly founded company will start producing and selling protective masks for the domestic and European markets from May 2020.

Over the past few weeks, Lenzing AG and Palmers Textil AG have invested several million euros in a modern production infrastructure at the Wiener Neudorf location and secured the corresponding raw materials for protective masks production. In a first step, the company produces so-called mouth-nose protective masks (MNS) and surgical protective masks of class EN14683. Hygiene Austria LP GmbH plans to increase its capacities to over 25 million masks per month over the next few weeks and to expand this business geographically as well.

The demand for high-quality MNS and respiratory masks for medical personnel is increasing rapidly, and there is real competition on the international market for these products. In order to sustainably secure domestic supply now and in the future and to strengthen the business location, the two companies Lenzing AG and Palmers Textil AG have now set a milestone with their own competence center for hygiene based in Austria.

Hygiene Austria LP GmbH thus makes a significant contribution to combating the Covid-19 pandemic and ensures the long-term supply of these critical goods in Austria in high quality.

• The PREMIUM GROUP in Berlin is cancelling its PREMIUM and SEEK trade shows for this summer season, as well as the FASHIONTECH conference – in collaboration with the leading global digital B2B marketplace, JOOR, there is still a guaranteed trading option.

Due to the coronavirus crisis, in April the dates of the PREMIUM GROUP’s events were provisionally moved from the original schedule of 31 June-2 July 2020 to 28 -30 July. Now, the Federal and State governments have decided to cancel large-scale events with over 1,000 visitors until 31 August 2020.
     
A statement from Anita Tillmann, Managing Partner of the PREMIUM GROUP: 

“We greatly regret the decision of course, especially after the success of our January events. The ban on large-scale events has been around for some time and has been publicly discussed. It hurts us to do it, but we are also conscious of our responsibility. If cancelling our trade shows, conferences and parties contributes to the safety of our customers and visitors, then we have to take this step.
 
We are in close contact with all our brands and partners and have spent the last four weeks discussing possible approaches, concepts and new focal topics for the summer. The bottom line is that digitalisation is clearly the focus. It’s all about using the time over the next few months sensibly. The timing for brands and retailers is now right – all market participants are aware of the necessity of this.

We have been working closely with JOOR, the leading B2B marketplace globally, for around a year, after successfully integrating our own digital platform, Veee.com. JOOR has digitalised the entire procurement process and ensures a seamless, functioning wholesale process on an international scale – both for brands and retailers.
 
We shall shortly be offering webinars on this and can offer our customers an optimal, digital ordering solution so as to use this time of the pandemic efficiently. We are very happy with this option and our year-long investment in the topic of digitalisation. This has come good for us now.
 
Our trade show formats have been about more than just ordering for a long time now. They are about encounters, emotion, inspiration, communication and, finally, the fashion community getting together. Although lots can take place digitally nowadays, it doesn't replace physically meeting up in person. We have seen this more than ever in the present situation.
 
We are going to work on new concepts for 2021, and we will liaise with the key stakeholders in Berlin and with all others too to ensure we hit the ground running again. We’re taking on the challenge and will come back to the industry when we have news.”

• Antiviral properties of Sanitized® products on synthetics validated

Tests conducted by independent laboratories have now confirmed that a treatment with Sanitized® T 99-19 and Sanitized® T 11-15 reduces the viral load on PES textiles by
up to 99 %.

Swiss company SANITIZED AG announces the validation from impartial labs that Sanitized®T 99-19 and Sanitized®T 11-15 are also effective against viruses (in accordance with ISO 18184:2019). Tests were performed using a feline coronavirus with structures and mechanisms reminiscent of SARS-Cov2. Patented technology featuring an ammonium silicate compound  is employed in Sanitized®T 99-19 and Sanitized®T 11-15 utilizes tried and tested silver technology.

These additives are the perfect tool for an antiviral and antibacterial treatment of face masks, protective professional medical clothing, bed linens, or mattresses. The formulation of both products remains completely untouched, thus ensuring that it will continue to offer outstanding protection against bacteria.

Before a final product’s antiviral properties can be publicly promoted, viral tests must be performed in specialized laboratories. Compliance with local legal regulations is essential here. SANITIZED AG explicitly points out that this is standard procedure and has composed a preliminary Guide for Treating PPE (personal protective equipment) with biocide products.

Guide Link: https://campaign.sanitized.com/en/treatment-of-ppe-with-biocidal-products

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.

a leading Asian large-scale manufacturer of manmade fibers and polymers has invested in a new Oerlikon Nonwoven meltblown system. The recently-signed contract comprises a 2-beam system for manufacturing filtration nonwovens – predominantly for medical products such as face masks – with a nominal capacity of up to 1,200 tons of nonwovens a year. The commercial production launch has been scheduled for the fourth quarter of 2020.

The 2-beam system has an operating width of 1.6 meters and is equipped with the new patented Oerlikon Nonwoven electro-charging unit. The Oerlikon Nonwoven meltblown technology is recognized by the market as being the technically most efficient method for producing highly-separating filter media made from manmade fibers, particularly in conjunction with electrostatic charging and with extremely low-pressure loss. Electro-charging the filter nonwovens allows the manufacture of sophisticated EPA- and HEPA-class filter media as well as media that comply with the requirements of N95-, FFP2- and FFP3-class respiratory masks.

The demand for filtration nonwovens for medical applications has risen tremendously across the globe since the outbreak of the Sars-CoV-2 (coronavirus) epidemic, presenting all manufacturers with huge challenges. A meltblown system will be commissioning at the site of a leading Western European nonwovens producers as early as the second quarter of 2020. This system will be deployed exclusively in the manufacture of nonwovens for respiratory masks.

Due to the current state of emergency with regards to the local supply of face masks, Oerlikon Nonwoven is currently using its own laboratory system to produce electrostatically-charged filter media which are being sent to local small businesses and companies for the manufacture of face masks.