From the Sector

As the first composites trade show worldwide since the Covid-19-crisis, the China Composites in Shanghai (September 2 to 4, 2020) took up its activity. The show counted about 600 exhibitors and over 20 000 visitors, mostly Chinese locals, attended the exhibition.

Chinese Reach Group under the lead of its president Daniel He represented a large portfolio of European companies and their recent developments through their cooperation with Dr. Michael Effing´s AMAC/Germany, among them Airborne (NL), Textechno (D) and Conbility (D).

Daniel He describes the situation: „The Chinese market is picking up again; a price increase of 7% for glass fibers was announced right before the China Composites Show, on August 25th 2020, which was even leading to a temporary material shortage. Today, the most booming industries in China are wind energy, building and infrastructure and innovation for electric cars. Unlike the rest of the world, where the aircraft industry undergoes a deep decline, in China it takes up by 50 %, which is very promising. Furthermore, we expect half a year for a full recovery of the industry, while the China growth of 2020 is still expected to be between 2 and 4 %.“

Michael Effing replied: “Enabling the composites business between China and Europe is the aim of our cooperation with Reach and with our customers, which are active in digital automatization, testing equipment or cost optimization software. We are very happy to have been present in China through our representant Reach and are looking forward to bridge and overcome the Covid-19-crisis with our upcoming event in Germany, the Composites for Europe in Stuttgart in November and hope to be back to full global business speed at the JEC in Paris in 2021.“

• The Lenzing Group was the first Austrian company to send goods 100 percent “Made in Austria” by train directly to China.
• The train loaded with TENCEL™ fibers reached Xinzhu station in Xi'an on September 05.

Xi’an, China – The Lenzing Group is breaking new ground due to the short-term increase in demand for sustainably produced fibers from Chinese customers. For the first time, the company delivered wood-based cellulosic fibers, which are produced at the Austrian sites in Lenzing and Heiligenkreuz, directly to China by train. Thanks to this new transport route, Lenzing is able to meet the urgent demand of its Chinese customers twice as quickly as by the usual sea freight.

The first complete train with goods 100 percent “Made in Austria” started on August 20 in the presence of Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology, His Excellency Xiaosi Li, Ambassador of the People's Republic of China in Austria, Stefan Doboczky, Chief Executive Officer of the Lenzing Group, Thomas Kargl, Board Member of the ÖBB Rail Cargo Group, Erwin Cootjans, Chief Executive Officer of Nunner Logistics, and Erich Hampel, Chairman of the Board of the B&C Private Foundation, at the Vienna South Terminal and reached his destination on September 05 at the Xinzhu train station in Xi'an, China. The train loaded with 41 containers with TENCEL™ branded lyocell and modal fibers and a total value of EUR 1.8 mn, passed a total of 10,460 km in seven countries: Austria, the Czech Republic, Poland, Belarus, Russia, Kazakhstan and China.

The first Lenzing fiber train was received in a grand ceremony on Tuesday, September 08 at the container terminal in Xi'an. Numerous guests, including the Austrian ambassador to China, Friedrich Stift, representatives of the Xi'an Municipal Government, the China Railway Xi'an Group, the Xi'an International Trade & Logistics Park as well as representatives of the Lenzing Group, the China National Textile and Apparel Council, Lenzing customers and the media attended the ceremony.

In his speech, Friedrich Stift, Austrian ambassador to China, emphasizes the importance of international trade and sustainable development: “The delivery of Austrian-made products through the CHINA RAILWAY Express adheres to the sustainable concept of Lenzing. Since China and Austria signed the bilateral railway cooperation agreement in 1994, the two countries have maintained good cooperation in the railway field and will continue to do so in the future. China is Austria's largest partner in Asia, and it is believed that after the outbreak of the corona crisis bilateral trade will normalize in 2021.”

“This is the first time for the Lenzing Group to deliver Austrian-made TENCEL™ branded fibers directly to Chinese customers. The Silk Road has been a main transport route between Europe and Asia since ancient times. Chinese consumers affectionately call TENCEL™ fibers ‘Silk from Heaven’. The China-Europe Express can reduce the transport time between Europe and China by half, thus meeting Chinese customer’s demand for environmentally friendly fibers more quickly”, states Hu Jian, Senior Vice President of the Lenzing Group for North Asia.

The 26th edition of Intertextile Shanghai Home Textiles concluded on 26 August, following a successful three-day run at the National Exhibition and Convention Center (Shanghai). It was Messe Frankfurt’s first event to take place in Shanghai in 2020 following disruptions from the pandemic. Amid the challenges presented by the pandemic, this year’s fair provided a vital opportunity for the international home and contract textile industries to source and reconnect through virtual and in-person meetings. Offering a comprehensive range of home and commercial textile products, the fair welcomed over 600 exhibitors and attracted more than 25,000 trade buyers.

Speaking as the fair concluded, Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd commented: “Intertextile has always been dedicated to providing an ideal platform for the international home textile industry and we are delighted to continue to do so during these unprecedented, challenging times. In view of the current global travel restrictions, this year’s fair offered a series of digital tools in addition to the traditional exhibition, allowing the fair to reach as wide an audience as possible. We are glad that this new format was highly recognised by the participating exhibitors and buyers alike.”

“Whilst economic activity in China is progressively recovering and domestic consumption continues to grow, the country’s exports are taking longer to rebound,” Ms Wen added. “One of the main objectives of this year’s fair was to connect domestic and international suppliers and buyers who are eager to make personal contacts and get back to business. As evidenced by feedback from numerous exhibitors and visitors, the fair has been able to help and support the industry’s recovery, so we are delighted with the results.”

Online business matching platform connected worldwide companies
 
In view of the current international travel restrictions, this year’s fair launched a brand new online business matching platform, which connected around 200 buyers from over 50 countries and regions to 60 exhibitors. The platform introduced multiple new functions, such as live-stream product presentations and a real-time chat platform to better facilitate business exchanges between suppliers and buyers from around the world. One exhibitor participating in the platform was Suzhou Roufang Textile Technology Co Ltd. “Yesterday we had a live-stream product presentation, which attracted around 200 buyers. The online platform is useful for us as we could showcase our new products and design concepts to overseas buyers, and let them know that we are still here to serve them,” the company’s Business Manager Ms Yu Qian Ru explained.

Mr Azam Osman, Manager of the Factory Depot (Pty) Ltd from South Africa expressed his satisfaction about the online platform: “I am glad that the fair provided the online business matching service where I have seen a lot of quality furniture and decorative fabric exhibitors. I’m interested in connecting with them.” Another buyer, Ms Elena Freyuk from Ziptown Trading Inc. said: "I am pleased that the fair offered both live-stream and video recording product presentations as I was unable to watch the live presentation due to time difference. The services were very thoughtful!”

A source of inspiration for the industry
 
To ensure fairgoers can discover the latest design and industry trends and insights, this year’s fringe programme presented a series of high quality events, covering the industry’s hottest topics. Some of the highlights included the 2021 Intertextile Trend Forum, which was led by Shen Lei, the Chinese representative of the Intertextile International Lifestyle Trend Committee. The forum brought together five prominent Chinese designers including Ben Chen, Ben Wu, Meng Ye, Paul Pang and Xie Ke, who presented an in-depth interpretation of the theme of 2021 Intertextile Trends, “BOUND”. Other events included Ride the Storm – Home Textile Digital Printing Forum, Tmall Seminar on industry digitalisation, Furniture & Home Textile Direct Negotiation Event and more.

Asia’s leading trade platform for the home and contract textile industry, Intertextile Shanghai Home Textiles, is ready to welcome over 600 exhibitors to China’s commercial hub from 24 – 26 August. As China’s economy continues its recovery, the upcoming fair will serve as a key platform for the industry to reconnect and prepare for the seasons ahead. Taking consideration of current international travel restrictions, Intertextile has launched a brand new online business matching platform, enabling participation for those who cannot travel to Shanghai.

Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd commented: “2020 has been a difficult and unpredictable year for every business and industry across the world, so we are pleased to be providing a platform for the home textile industry to connect and recover from the coronavirus pandemic. Intertextile Shanghai Home Textiles is the first physical trade event for the sector held by Messe Frankfurt since January, so we hope that the fair assists the sector to join forces and overcome this challenging year together.”

Ms Wen continued: “Our first priority is to create a clean and hygienic space for all participants to source and network. To achieve this goal, the fair will implement extra health care and hygiene precautions onsite. On the other hand, we are aware that a number of travel restrictions are still in place across the world. With this in mind, Intertextile will offer a series of online services for those who are unable to travel to Shanghai, allowing the fair to reach as wide an audience as possible.”

2020 fair highlights

To provide buyers with greater efficiency, the fair, which covers four halls, will be divided clearly by product categories: Household Hall (hall 3), International Brands / Upholstery Hall (hall 4.1), Brand Fabrics Hall (hall 5.1) and Sofa Fabrics Hall (hall 6.1).

In addition, the Contract Business 360° concept will return this year, with over 40 premier upholstery exhibitors presenting their latest textile products and furnishing solutions for contract use. Exhibitors include Guangzhou Yuanzhicheng Home Textile, Haining Julai Textile, JAB, Morgan Shanghai, Symphony Mills, Suzhou Roufang, Ter Molst International, Zhejiang Hexin and Zhejiang Maya Fabric. Furthermore, top brands such as Agmamito from Poland and Wollsdorf Leather from Austria will be exhibiting for the first time at Intertextile.

Online business matching platform offers new sourcing landscape

Although face-to-face interaction is irreplaceable, a virtual complement has become more important as a result of the worldwide pandemic. To support the industry during these unprecedented times, Intertextile has launched a brand new online business matching platform. With this free service, participants are able to source and network at their fingertips. The virtual platform will offer many new features including:

• Easy sourcing: exhibitors are categorised by product groups including Sofa / Decorative Fabrics, Curtains and Accessories, Bedding and Finished products, Shading and Accessories, and Editors
• Live-streamed product presentations of exhibitors
• Smart recommendations: pre-selected exhibitor lists will be provided to buyers based on their personal preferences and interests
• Convenience: participants are able to use the service through computers or portable devices without the need to download any software

High quality fringe programme covers comprehensive topics
 
The fair’s event programme will once again provide the industry with the latest trends and insights in four topics: Design Inspiration, Business O2O, Textile & Technology and Industry Empowerment. One of the highlights will be the 2021 Intertextile Trend Forum, led by Shen Lei, the Chinese representative of the Intertextile International Lifestyle Trend Committee. The forum will bring together five prominent Chinese designers including Ben Chen, Ben Wu, Meng Ye, Paul Pang and Xie Ke, who will delve into the theme of 2021 Intertextile Trends–“BOUND”, as well as the Chinese market conditions. The event will be held on day 1 of the fair, from 14:00 – 17:00 in hall 5.1 booth C18, and streamed live online.

Another not-to-be-missed event is the Ride the Storm – Home Textile Digital Printing Forum, which will include an array of educating seminars that cover the latest digital textile printing trends and technologies. The forum will be held on day 2 of the fair, from 13:20 – 17:20 in hall 3, booth M12.

Furthermore, joining forces with Tmall Global, the largest cross border B2C online retail platform in China, the fair will host a series of seminars delivering the solutions and strategies for industry digitalisation during the afternoon of day 1. In addition, the well-received Furniture & Home Textile Direct Negotiation Event will return to provide an excellent opportunity for furniture companies and fabric brands to collaborate.

Additional health care and hygiene precautions will be in place

As trade fair co-organisers, Messe Frankfurt’s number one priority always remains the health and safety of fairgoers. To maintain a clean and hygienic environment for visitors and exhibitors to meet in, extra measures will be in practice at the fair. These include: real-name registration, onsite temperature checks, frequent sterilisation of public areas and distancing measures for forum / seminar audiences, amongst others.

• Italian creativity merges with Chinese technological innovation to create a new capsule collection
   

A new era is born in the world of denim, Paolo Gnutti and Advance Denim will combine their skills to create capsule collections for both the US and Asian markets.

These collections will combine Paolo Gnutti’s artistry and Advance denim’s technological innovation to create “magical” inspiration that is with the reach of all brands.

Advance Denim has the distinction of being the oldest denim manufacturer in China and has dedicated its efforts since day one around the core beliefs of innovation , service , quality and people. These core beliefs are the foundation of their day to day focus of becoming a world leader in denim. They are also  committed to making the most sustainable denim possible and they are constantly investing in the infrastructure and systems that will help them to reach aggressive sustainability goals . Sustainability is important but Advance Denim has always been true to denim and strive to produce innovative high-quality products that exceed the needs of the market

“We are looking forward to Paolo bringing his Italian artistic aesthetics to our denim.” Said Ms. Amy Wang, General Manager of ADVANCE DENIM. “ We believe it is the combination of eastern and western design and culture that have never been offered to our customers before and will take Advance Denim to a whole new level. It is our goal to also offer these high quality designs at a competitive price from our Vietnam facility.” conclude Ms. Wang.

Paolo Gnutti, a life time dedicated to denim innovation and creativity, bases the creation of his collections following  precise themes and  stylistic contaminations. He uses indigo bases which are completely transformed thanks to the use of flocks, 3D prints, colored foils and metallic effects.

Paolo Gnutti has the ability to conceive ground breaking fashion, thanks to his incredible creativity and visionary irreverent combination that ushers in a new concept of  fashionability to the denim world.

“ My passion and my professional exploration lead me to acquire the skill needed to develop unforgettable and unique textile concepts” said Paolo Gnutti “ I’m trilled to begin this collaboration with Advance Denim. I feel that we need a new challenge in our denim world, a new era of true globalization; we will create a capsule collection that will reach all customers, from premium to the mass market.”

A new era begins, based on the evolution of the  market and the search for innovation and inspiration that is both technically performance driven and accessible to all brands.

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.

• 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.

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. 

• Bangladeshi supplier offers production capacity to produce face masks and PPE on non-profit basis
•  Reaching out to global agencies to build partnerships to help tackle COVID-19 crisis

A Bangladeshi garment manufacturer is offering the manufacturing capacity for the production of protective face masks and Personal Protective Equipment (PPE) on a non-profit basis to help tackle the COVID-19 global pandemic.
Many hospitals in Europe and USA are already running short of masks and PPE as they creak under the strain of the pandemic.
At present, COVID-19 is most prevalent in Europe, where demand for surgical masks and other protective garments has increased this past two months. However, other countries – including Bangladesh – are several weeks behind Europe but are expected to follow the same pattern in terms of cases and deaths.

Denim Expert Limited Managing Director, Mostafiz Uddin, has reached out to the global community including brands & retailers, governments, embassies, donors, development agencies, global apparel associations and bodies in these unprecedented times.

Diverging development in the two business units impact fiscal year 2019 of SGL Carbon – Group guidance for 2020 confirmed

• Consolidated sales revenues in fiscal year 2019 up by 4 percent to around 1.1 billion euros
• Consolidated recurring EBIT down by 25 percent to 48 million euros; record results of graphite specialities business did not fully compensate for the weak development in the carbon fiber business
• Composites – Fibers & Materials (CFM): Cyclical und structural weaknesses impact the result of the market segments Wind Energy, Textile Fibers and Industrial Applications, which have limited strategic significance in the medium term
• Graphite Materials & Systems (GMS): Sales and earnings on record level due to strong growth in the market segments Semiconductors and Automotive
• Non-cash impairment charge of around 75 million euros was recorded at CFM in the third quarter of 2019
• Free cash flow significantly improved
• Issue of a new corporate bond and early redemption of the 2015/2020 convertible bond has significantly improved the maturity profile
• SGL Carbon confirms guidance for fiscal year 2020: sales expected slightly below previous year; recurring EBIT approximately 10 to 15 percent below previous year level
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: “The financial development of the fiscal year 2019 conceals the fact that our strategic orientation is correct. This is evident from our growth and the increasing number of contracts and projects we acquired in our strategic core markets. Main drivers are the topics of sustainable mobility and energy as well as digitization. Therefore, we expect that we can grow our consolidated revenue by a mid to high single-digit percentage per year on average between 2020 and 2024.“

The fiscal year 2019 developed very differently in the two business units of SGL Carbon. The record results in the graphite specialities business could not fully compensate for the weak development in the market segments Wind Energy, Textile Fibers and Industrial Applications in the carbon fiber business. Group sales grew by 4 percent to 1.1 billion euros. Recurring Group EBIT declined by 25 percent to 48 million euros. Due to the ongoing weakness in the market segments Textile Fibers and Industrial Applications the business unit CFM recorded a non-cash impairment loss of 75 million euros in the third quarter of 2019. With minus 90 (prior year: plus 41) million euros, consolidated Group result declined significantly compared to last year’s good results. The Group confirms its guidance for 2020 published in October 2019.

Group sales are expected to decline slightly compared to the prior-year level, whereas Group recurring EBIT is expected to reach a result around 10 to 15 percent below the prior-year level. Consolidated net result of the Group in 2020 should strongly improve compared to prior-year level to a low double-digit loss.