From the Sector

Gianluca Croci's priority will be to support Lectra's French customers in their transformation towards Industry 4.0
Lectra announces the appointment of Gianluca Croci as Managing Director, Lectra France. Based in Paris, Gianluca Croci reports to Fabio Canali, President, Southern Europe & North Africa.

Gianluca Croci has more than 20 years of experience in the fashion industry. He began his career in 1998 in the department store chain La Rinascente before joining the Giorgio Armani group in 2002, where he managed, from 2006 to 2015, the Belgian and French subsidiaries. Gianluca Croci later held management positions for major fashion and luxury brands, such as Roberto Cavalli and Marcolin, and was recently the Sales & Marketing Director for Technogym France, a designer of sports equipment.

Gianluca Croci will fulfil Lectra's promise to fashion companies in France: to facilitate the digitalization of their know-how in order to empower them to make a successful transition to Industry 4.0. This ambition is being realized by the 2018 launch of the revolutionary solution, Fashion On Demand by Lectra, which enables fashion companies to customize a garment or make it to measure. This end-to-end personalization offer—the first of its kind—complements a portfolio that is known to solve the pressing challenges confronting the fashion industry. The latest, Kubix Link, developed by Kubix Lab, a start-up acquired by Lectra in January 2018, is an innovative platform for managing product information.

"France is known worldwide for being a leader in fashion and technological innovation. It is a country where brands, retailers and manufacturers have already begun their transformation towards Industry 4.0. I am proud to support our customers’ pursuit of greater connectivity and collaboration in their operations, as well as in assisting them to make the shift to personalization," says Gianluca Croci.
Gianluca Croci and his teams are committed to providing their French customers with the high level of expertise and service that characterizes Lectra's value proposition.
Gianluca Croci's efforts are also tied to the dynamic activities of Lectra Southern Europe & North Africa. There are many synergies in the region’s fashion industry, ranging from the sharing of expertise between French and Italian companies to the integration into their ecosystem of the Moroccan and Tunisian subcontractors.

"Our regional organization enables us to be closer to our customers’ challenges and to provide them with the support they need to achieve their ongoing targets. Gianluca Croci will lead the French teams and contribute to the region's growth," says Fabio Canali. "His extensive experience with major Italian and French companies brings new energy to the development of Lectra France.”
Gianluca Croci is a graduate of the European Institute of Business Administration (INSEAD), Fontainebleau (France), and the Catholic University of the Sacred Heart, Milan (Italy).

Chomarat, a leader in technical textiles and composite reinforcements, is developing its Coatings & Films business at its French sites. The Group has just acquired an extruder and a graining line to increase its production capacities and develop new, more efficient solutions, particularly in the field of TPO (polyolefin thermoplastics). These two technological investments are part of the €35 million investment plan announced by the Group in mid-2017.

AN EXPANDED OFFER WITH THE NEW GRAINING LINE
The graining line gives texture to the coated textile and provides a differentiation of appearance or a functionalization, such as non-slip or durability. "We will use this new technology to broaden the scope of material we process (including the production of TPO sheets with or without backing), and to improve the perceived quality by a better grain definition," explains Philippe Chomarat, Director of the Coatings & Films business at Chomarat. This technological investment enables the Group to increase its production capacities and offer new solutions for the automotive and luxury bag markets.

INCREASING PERFORMANCE WITH THE NEW EXTRUDER
The new extruder increases the Chomarat production capacity for coated textiles and allows production in larger widths. The technology consumes less energy and emits very low level of VOCs, in line with the Group's sustainable approach. It also supplements existing solutions for developing biosourced coated fabrics. "This is a strategic investment for Chomarat, as in addition to PVC, we will be able to work with new materials such as TPO, TPU and new biosourced materials. We will offer innovative solutions for all our markets—pipes, luxury bag, automotive and protection," concludes Philippe Chomarat.

For SEEK’s 10thBirthday we want to give something to those who are usually overlooked. Together with One Warm Winter, we are wrapping up Goodie Bags for the homeless and taking them where they are actually needed – to the streets. That’s why we are asking brands to donate old collection pieces, samples, stock, etc.
 
“We are really happy to team up with One Warm Winter for our SEEK donation initiative. We want to counteract the omnipresent throwaway mentality. Every step counts. Homelessness is a growing issue, especially in Berlin – we hope to bring some warmth to the city streets.”
– SEEK Team
 
“With the GiveBag the fashion industry is setting an important example in terms of awareness and sustainability. Ultimately, these bags are filled with what is often left out by the economy: true charity.”
– Dominic Czaja, One Warm Winter
 
The huge One Warm Winter GiveBag will be filled on all three show days (15–17 January) in front of the SEEK location at Arena Berlin. Every donor will receive a donation receipt and stay informed about the next steps. The GiveBags will be handed out to people in need by the SEEK team and One Warm Winter at the next charity event.

Additional support will be provided by TOMS with a requested voluntary donation in exchange for a nice hot coffee. The end sum will be matched by TOMS and donated directly to One Warm Winter.
 
“Giving is at the heart of everything we do at TOMS, but it’s projects like this that are in our own backyard that hit home the most. Homelessness is one of the issues closest to our hearts, so we couldn’t be more honoured to work with SEEK and One Warm Winter this season to lend a hand to our friends in Berlin that need it most.”
– Lisa Hogg, TOMS EMEA Marketing Director
 
The reaction from the SEEK brands towards our initiative has been amazingly positive – almost all of them are actively and enthusiastically participating by donating garments that cannot be sold anymore.
 
“Palladium Boots is very excited about this call for action and being able to take part in supporting the cause. City terrain is what we are built on and we are glad to gift a little warmth and particularly the gesture of humanity together with SEEK and One Warm Winter.”
– Melanie Bruss, Marketing Manager, Palladium Boots D, AT & NL
 
“The entire CHIEMSEE family is amazed by this initiative! It’s a great feeling to pass on some warmth and distribute it more fairly. Thank you SEEK and One Warm Winter for the idea – the fashion industry definitely needs more of those!”
– The CHIEMSEE family

• The opening of Perlon’s new site in Haining City, Zhejang Province was celebrated in a festive style on 29th November 2018.

Around 140 invited guests experienced the splendid opening ceremony for the newly constructed site in the urban development zone, with a traditional, cultural programme, subsequent exhibition and gala dinner in the nearby LANGHAM PLACE hotel. The significance of this new site for the Perlon Group was emphasised and the support of the Haining region was applauded, in the official speeches by Serafin co-founder Philipp Haindl, Perlon CEO, Florian Kisling, CEO of Perlon in China, Xiaotao Xia, as well as, the director of Haining City People’s Congress, Mr YAO Minzhong. After the obligatory cutting of the ribbon for the official opening, the first spool of PMC Filament was presented to Mr Haindl to symbolically mark the start of a new filament production line.

The vision to have a presence in China and to create sufficient production capacity to fulfil the customers need for quality filaments made by Perlon® has been smoothly delivered by Perlon Group, the Serafin group company. After less than 2 years in the planning and building phase, the new build project and line relocation from the previous plant in Haining will be concluded by the end of the year. With sufficient space for further production lines, the Groups requirement for a long-term commitment in China has been created. Alongside filaments for paper machine clothing (PMC), the plan is to manufacture products there for applications in the other Perlon® main markets in the next few years.

Emphasis on Process, Third-Party Validation and Outcome-Based Testing

Canadian Linen and two U.S. AmeriPride Services Inc.’s locations have recently earned have earned the Hygienically Clean Food Safety certification, reflecting their commitment to best management practices (BMPs) in laundering as verified by on-site inspection and their capability to produce hygienically clean textiles as quantified by ongoing microbial testing. The company’s Canadian Linen and Uniform Service facilities in these locations have earned the Hygienically Clean Food Safety certification:  

• Alberta: Edmonton and Lethbridge
• British Columbia: Victoria and Vancouver/Burnaby
• Manitoba: Winnipeg
• Nova Scotia: Halifax
• Ontario: Etobicoke, London, North York and Ottawa
• Quebec: Quebec City
• Saskatchewan: Regina and Saskatoon

The recently-certified U.S. AmeriPride laundries are located in Vernon, Calif. and Durant, Miss.  
The certification confirms the laundry’s dedication to compliance and processing garments and linens using BMPs as described in its quality assurance documentation, the focal point for inspectors’ evaluation of critical control points (CCPs) that minimize risk. The independent, third-party inspection must confirm essential evidence that:

• Employees are properly trained and protected
• Managers understand legal requirements
• OSHA-compliant
• Physical plant operates effectively

In addition, these facilities each passed three rounds of outcome-based microbial testing, indicating that their processes are producing Hygienically Clean garments and other reusable textiles with diminished presence of harmful bacteria. To maintain their certification, laundry plants must pass quarterly testing to ensure that as laundry conditions change, such as water quality, textile fabric composition and wash chemistry, laundered product quality is consistently maintained.
This process eliminates subjectivity by focusing on outcomes and results that verify textiles cleaned in these facilities meet appropriate hygienically clean standards and BMPs for animal processing, dairies, fruit/vegetable, bakeries, grain and other food and beverage industry segments.
These Vernon, Calif. and Durant, Miss. locations of the AmeriPride chain join these laundries who have previously received the Hygienically Clean Food Safety certification:

• Tuscumbia, Ala.
• Bakersfield and Fresno, Calif.
• Twin Falls, Idaho
• St. Cloud and Minneapolis, Minn.
• Amarillo Texas

Hazard Analysis and Critical Control Points (HACCP) practices are examined in the Hygienically Clean Food Safety inspection process, evaluating the plant’s techniques for:

• Conducting hazard analysis
• Determining CCPs, monitoring their control, correcting them if not under control
• Validating and verifying HACCP system effectiveness
• Documenting and record-keeping to show ongoing conformance

On-site inspections also evaluate practices relevant to handling and processing textile products used in food manufacturing/processing establishments for adherence to U.S. Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) directives. Introduced in 2014, Hygienically Clean Food Safety brought to North America the international cleanliness standards for laundering garments and other textile products for food manufacturing used worldwide by the Certification Association for Professional Textile Services and the European Committee for Standardization.
Twelve of the company’s U.S. locations have achieved the Hygienically Clean Healthcare certification:

• Little Rock, Ark.
• Phoenix and Watkinsville, Ga.
• Twin Falls, Idaho
• Topeka, Kan.
• Bemidji and Minneapolis, Minn.
• pringfield, Mo.
• Omaha, Neb.
• Roswell, N.M.
• Memphis, Tenn.
• Lubbock, Texas

The company’s Canadian Linen and Uniform Service facility in Lethbridge, Alberta, is also Hygienically Clean Healthcare-certified.
In January 2018, Philadelphia-based Aramark Corp. announced the completion of its acquisition of AmeriPride, making AmeriPride a wholly owned subsidiary. Aramark’s uniform rental and career apparel business is headquartered in Burbank, Calif.

• Three companies with complementary strengths team up
• BASF leads a Series A investment round with Materialise as one of the co-investors

BASF Venture Capital is leading the Series A investment round in Essentium, Inc., an innovative developer of disruptive, industrial additive manufacturing solutions headquartered in College Station, Texas. Materialise is one of the co-investors in the Series A investment round in Essentium, Inc. BASF and Essentium have been working together on advanced fused filament fabrication (FFF) solutions using Essentium’s proprietary FlashFuseTM technology for high mechanical strength in the build direction for extrusion printed parts. The two companies are now extending their strategic partnership to establish a consistent global materials supply chain supportive of Essentium’s new High Speed Extrusion (HSE) additive manufacturing platform. Essentium and BASF welcome Materialise to enter this strategic partnership to develop 3D printing software for the Essentium technology. This will allow users to take advantage of the speed of the HSE technology while having immediate access to the full Materialise software capabilities for professional 3D printing. The three companies combine their complementary strengths to jointly advance 3D printing technology and customer value to enable industrial additive manufacturing.

BASF is contributing comprehensive material know-how, a broad product portfolio, and its global network to the partnership. Materialise adds nearly three decades of expertise in the development of innovative 3D printing software solutions. Essentium is addressing additive manufacturing at scale by developing an industrial additive platform truly built for the production floor, providing its FlashFuseTM electric welding technology, and engineering-grade, multi-layer filaments for demanding applications. Together, the three partners intend to innovate solutions with advanced combination of hardware, software and materials to unleash the potential of Essentium’s unique high-speed-printer technology, coordinating their strengths to the best advantage.

“Our joint investment strengthens our co-operations with both Essentium and Materialise and accelerates the innovation potential of this powerful team to the benefit of BASF’s customers,” said Markus Solibieda, Managing Director of BASF Venture Capital.

“With this strategic investment, Essentium and BASF are focusing on improved supply chain performance, material consistency and accessibility. Essentium is also delighted to begin a new partnership with Materialise as the three companies focus efforts toward a new era for smart solutions in the global additive extrusion space. Together, we believe manufacturers everywhere will be able to accelerate production due to increased access to our new solutions, bolstered by a holistic, customer-centric approach,” comments Dr. Blake Teipel, CEO of Essentium, Inc.

“Materialise, Essentium and BASF share a vision for growth in the 3D printing industry that builds on the creation of meaningful applications in an open and vibrant ecosystem”, said Bart Van der Schueren, CTO of Materialise. “This partnership helps to promote a more open market model, which will fuel the adoption of 3D printing in the industrial field by offering users more control, more choice in materials and ultimately lower cost and higher volumes.”

BASF and Materialise are joined by a syndicate of private venture investors. Moving forward, BASF, Materialise, and Essentium will jointly drive the transition from 3D printing to scalable additive manufacturing.

CHOMARAT, the expert in composites reinforcements, is the partner of BABOLAT with its multiaxial carbon, C-PLY™ Hexagonal. Indeed, the specialist racket sports goods manufacturer is launching the new version of the BABOLAT’s Pure Aero. A combination of ultra-modern design and high performance, this tennis racket for champions has made an appearance on the courts of the Rolex Paris Masters. “We are very proud to be chosen by BABOLAT. Our new carbon reinforcement, added to the heart of the racket, enables better control and makes each shot more precise and stable,” says Pascal JOUBERT DES OUCHES, Sports Equipment Market Director at CHOMARAT.

C-PLYTM HEXAGONAL, THE PERFECT ALLIANCE OF PERFORMANCE & DESIGN
The addition of C-PLY™, CHOMARAT’s multiaxial carbon reinforcement, to the core of the BABOLAT’s Pure Aero has increased the racket’s stability while enhancing its performance. The specificity of the reinforcement lies in its stitching thread. “This unique thread brings out the color of the resin pigments because it has been designed to remain visible after its impregnation. It also contributes to extra reinforcement and an exceptional design!” concludes Pascal JOUBERT DES OUCHES.

Emphasis on Process, Third-party Validation and Outcome-based Testing
Florida Linen Services has earned the Hygienically Clean Healthcare certification for its Rockledge plant, reflecting their commitment to best management practices (BMPs) in laundering as verified by on-site inspection and their capability to produce hygienically clean textiles as quantified by ongoing microbial testing.

The Hygienically Clean Healthcare certification confirms the organization’s continuing dedication to infection prevention, compliance with recognized industry standards and processing healthcare textiles using BMPs as described in its quality assurance documentation, a focal point for Hygienically Clean inspectors’ evaluation. The independent, third-party inspection must also confirm essential evidence that:

• Employees are properly trained and protected
• Managers understand regulatory requirements
• OSHA-compliant
• Physical plant operates effectively

To achieve certification initially, laundries pass three rounds of outcome-based microbial testing, indicating that their processes are producing Hygienically Clean Healthcare textiles and diminished presence of yeast, mold and harmful bacteria. They also must pass a facility inspection. To maintain their certification, they must pass quarterly testing to ensure that as laundry conditions change, such as water quality, textile fabric composition and wash chemistry, laundered product quality is consistently maintained. Re-inspection occurs every two to three years.

This process eliminates subjectivity by focusing on outcomes and results that verify textiles cleaned in these facilities meet appropriate hygienically clean standards and BMPs for hospitals, surgery centers, medical offices, nursing homes and other medical facilities.

Hygienically Clean Healthcare certification acknowledges laundries’ effectiveness in protecting healthcare operations by verifying quality control procedures in linen, uniform and facility services operations related to the handling of textiles containing blood and other potentially infectious materials.

Certified laundries use processes, chemicals and BMPs acknowledged by the federal Centers for Disease Control and Prevention (CDC), Centers for Medicare and Medicaid Services, Association for the Advancement of Medical Instrumentation, American National Standards Institute and others. Introduced in 2012, Hygienically Clean Healthcare brought to North America the international cleanliness standards for healthcare linens and garments used worldwide by the Certification Association for Professional Textile Services and the European Committee for Standardization.

Objective experts in epidemiology, infection control, nursing and other healthcare professions work with Hygienically Clean launderers to ensure the certification continues to enforce the highest standards for producing clean healthcare textiles.

The Rockledge plant joins two other Florida Linen locations (Pompano Beach and Jensen Beach) that earned Hygienically Clean Healthcare Certifications in 2017. Florida Linen has provided healthcare laundry and linen services throughout Florida since 2003. “Congratulations to Florida Linen Services on their certification,” said Joseph Ricci, TRSA president and CEO. “This achievement proves their commitment to infection prevention and that their laundry takes every step possible to prevent human illness.”

Decline in revenue due to lower prices for standard viscose, less favorable currencies and lower production volume

• Pressure on prices for key raw materials remains high
• Positive impact due to focus on specialty fibers and further optimization of the product mix
• Expansion project in Mobile temporarily mothballed
• Acquisition of the remaining 30 percent of Lenzing (Nanjing) Fibers Co. Ltd.

The Lenzing Group recorded a solid business development in the first three quarters of 2018. The decline in revenue and earnings compared with the same period of the previous year was essentially based on a mix of lower prices for standard viscose, more unfavorable exchange rates and price increases for key raw materials. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment.

Revenue decreased by 5.2 percent to EUR 1,636.2 mn over the comparative period of the previous year. Apart from the high starting base, this was primarily attributable to the expected challenging market environment for standard viscose, less favorable exchange rates and lower production volume. EBITDA (earnings before interest, tax, depreciation and amortization) recorded a decline by 26.8 percent to EUR 290.6 mn due to price increases for key raw materials and higher energy and dissolving wood pulp prices. The EBITDA margin dropped from 23 percent in the first three quarters of the previous year to 17.8 percent. EBIT (earnings before interest and tax) fell by 36.2 percent to EUR 190.3 mn, leading to a lower EBIT margin of 11.6 percent (01-09/2017: 17.3 percent). Net profit for the period dropped by 39 percent from EUR 219.3 mn in the previous year to EUR 133.8 mn. Earnings per share equaled EUR 5.06 (01-09/2017: EUR 8.12).

“The Lenzing Group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development and the corporate strategy sCore TEN has a positive impact. The new production line in Heiligenkreuz started up successfully and customers’ feedback has been positive,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “While many viscose producers are faced with a very tense profit situation, we are well positioned due to our specialty strategy and still expect a satisfactory full year”, Doboczky adds.

Key strategic measures were implemented during the first three quarters of 2018 in line with the sCore TEN strategy. The start-up of new capacities for lyocell fibers in Heiligenkreuz, the production start of LENZING™ ECOVERO™ fibers at the Nanjing site and the investment in another pilot line for TENCEL™ Luxe filaments are important steps to accomplish the goal of increasing the share of specialty fibers in total revenue.

Project in Mobile temporarily mothballed
Due to the decision to temporarily mothball the lyocell expansion project in Mobile, Alabama (USA), in view of the buoyant US labor market and trade tensions between the major trading blocks, the implementation of the expansion plan for specialty staple fibers will be slowed down. The Lenzing Group will put all its effort to readjust the execution of its growth plan to meet strong market demand for its lyocell fibers. This includes an increased focus on the lyocell expansion project in Prachinburi (Thailand).

Advancing forward solutions
Regarding the capacity expansion for specialty products such as TENCEL™ Luxe filaments and LENZING™ ECOVERO™ viscose fibers, Lenzing is still on track. After the introduction of TENCEL™ Luxe branded lyocell filament yarns in the previous year, Lenzing continues to drive innovations in the area of the value chain. In September, the company also announced the successful development of the LENZING™ Web Technology, a new technology platform focusing on sustainable nonwoven products, which will lead to new market opportunities for the industry. Following several years of research and development work and investments totaling EUR 26 mn, the pilot plant at the headquarters in Lenzing has been successfully put into operation.

Largest dissolving wood pulp line worldwide
At the end of June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp plant in the state of Minas Gerais (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers. The joint venture is investigating the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decisionto build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Acquisition of Chinese operation
At the beginning of November the takeover by the Lenzing Group of the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC was completed. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The acquisition will have a negative impact on net profit of approx. EUR 21 mn for the fiscal year 2018. The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

Expansion of capacities
CAPEX (investments in intangible assets and property, plant and equipment) rose by 35.5 percent year-on-year to EUR 174.1 mn in the first three quarters of 2018. This is primarily attributable to capacity expansions in Heiligenkreuz and the expansion of the existing dissolving wood pulp plant in Lenzing as well as the investments made so far in Mobile.

Outlook
Demand development on the global fiber market remains positive. Lenzing expects wood-based cellulosic fibers to continue to grow at a higher rate than the overall fiber market. In a challenging market environment the Lenzing Group expects solid results for 2018, albeit lower than in the outstanding last two years.

For 2019, Lenzing expects standard viscose markets to remain under pressure because of an ongoing oversupply and very high raw material prices. Lenzing’s specialty fiber business is expected to continue the very positive development.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. Lenzing is very well positioned in this market environment and will continue its consistent focus on growth with specialty fibers.

Chomarat has specialized in scrim reinforcements for construction materials for more than 50 years. Now, it has invested in a new pilot production line to develop its next generation of reinforcements. Unique in the market and designed entirely by CHOMARAT’s teams, this technological innovation was born by the Group’s body of technological know-how. Conceived for the development of next generation cement board and roof-waterproofing reinforcements, the machine is versatile for developing materials for new markets. The new line will become operational in early 2019 at CHOMARAT’s construction plant in Anderson, South Carolina, USA.

A technological innovation for higher performance
The new pilot line will enable CHOMARAT to accelerate its development projects focusing on cost, performance and sustainability. The Group’s goal is to launch a new generation of laid scrim reinforcements for construction materials, with incomparable performance. “We are working on all the parameters (technological, chemical formulations, textile fibers) to optimize the performance of CHOMARAT scrims, such as protecting glass against alkali in cement or increasing impact resistance and water repellency. We plan to stay in front of economic and environmental challenges facing the construction market,” explains Raphaël PLEYNET, Director of Composites & Construction Europe at CHOMARAT.

“This pilot scrim line is a key element in the Group’s global innovation and development strategy. The technological developments achieved on this equipment will enable us to lead through innovation, meet the challenges to come for construction materials, and enhance our value to the market” adds John LEATHAM, Director of Sales and Marketing at CHOMARAT North America.

Combining expertise from textile and chemical-formulation technologies
The scrims designed and developed by CHOMARAT are reputed for their advantages: dimensional stability, laminating quality with other materials (film or veils), excellent mechanical performance, and very good protection against the alkalinity of cement. “CHOMARAT’s knowhow in laid-scrim manufacturing is based on the combined expertise in textile and chemical-formulation technologies. With this new pilot technology, CHOMARAT will be able to build on these two advantages and propose even better-performing materials!” concludes Philippe SANIAL, Director of Research & Technologies at CHOMARAT.