From the Sector

ERCA successfully showcased their latest product during the recent ITMA 2023 exhibition, taking the opportunity to share with ITMA visitors the journey that stood behind the creation of REVECOL®.

REVECOL® transforms critical waste materials (exhausted vegetable oils) into a line of innovative and responsible chemical auxiliaries destined for the entire textile industry and its various applications, offering different characteristics: circular DNA, certification, safety, high performance, competitivity and applicability on any type of textile fiber, whether virgin or recycled.

Patagonia® and trim supplier YKK teamed up with ERCA to deploy REVECOL® in their manufacturing process. This alliance was presented to ITMA visitors as an example of what the industry can achieve through collaborative practices.

The process of sharing REVECOL® with the industry really started with the announcement of ERCA’s partnership with Patagonia® and YKK and deepened during the session Upcycling Minds Think Alike moderated by Giusy Bettoni, CEO and Founder, C.L.A.S.S. (Creativity, Lifestyle and Sustainable Synergy), and which saw the participation of Matt Swartz, Color and Material Quality Manager of Patagonia®, Fabio Locatelli, Head of ERCA, Textile Specialties Business Unit and Mike Maekawa, Sales and Business Development Manager, YKK Vietnam.

The Board of Directors of Rieter Holding Ltd. unanimously has appointed Oliver Streuli to the Group Executive Committee of Rieter Group as Chief Financial Officer, effective August 1, 2023.

Oliver Streuli was from June 2019 until April 2023 CEO at PCS Holding AG in Frauenfeld (Switzerland), a private institutional investment company, where he was responsible for developing the investment strategy as well as the financial and strategic supervision of the industrial portfolio companies. He was also project manager for the IPO on the SIX Swiss Exchange at Stadler Rail AG, Bussnang (Switzerland). Previously, he held different positions at UBS.

He is currently a member of the Board of Directors of Swiss Steel Holding AG, Lucerne (Switzerland), and of Autoneum Holding AG, Winterthur (Switzerland).

Oliver Streuli was a member of the Board of Directors of several industrial and financial portfolio companies of PCS Holding AG in Switzerland, in Austria and in Türkiye, which are active in fields of electric propulsion systems, green mobility and rolling stock leasing.

Oliver Streuli was born in 1988 and is a Swiss citizen. He holds a Master’s degree in Accounting and Finance from University St. Gallen (HSG),

Mehr als 60 CEOs der Textilindustrie trafen sich am 11. Mai 2023 zum 1. CEO-Talk der STF, einer exklusiven Veranstaltung mit Schwerpunkt auf Networking und Innovation. Die Panel-Diskussion betonte die Bedeutung einer aktiven Zusammenarbeit, um das Innovationspotenzial der gesamten Branche zu erschließen.

Podiumsteilnehmer, darunter Joachim Kath (CEO, Schoeller AG), Andreas Holzer (VRP, Bardusch AG), Stephan Bühler (VRP, Jakob Müller Group), Ronald Christen (CEO, Loeb AG) oder Christian Gut (CMO, Stöckli Swiss Sports AG), moderiert von Reto Lipp, brachten unterschiedliche Perspektiven aus den Bereichen Textiltechnik, Textilpflege, Textilmaschinen, Retail und Grosshandel ein.

Die Veranstaltung beinhaltete auch ein „CEO Speed Dating“, um gezielte Gespräche zu ermöglichen und neue Verbindungen zu schaffen und zu fördern. Die Teilnehmenden verließen die Veranstaltung mit neuen Erkenntnissen und einem gestärkten & erneuerten Netzwerk von Branchenkollegen, die bereit sind, die Zukunft ihrer Unternehmen zu gestalten.

The shareholders of SGL Carbon SE approved all agenda items at the Annual General Meeting on May 9, 2023. The Annual General Meeting, which was held virtually, was attended by up to 114 electronically connected shareholders who, together with the postal votes submitted, represented 64.64% of the share capital.

CEO Dr. Torsten Derr began his speech with a review of SGL Carbon's two-year transformation phase. "In two years, we have been able to increase our sales by 23.5% and adjusted EBITDA by as much as 86.2%. In parallel, we reduced our debt by 40.4%," Dr. Derr elaborated. He also reported on the past financial year and the expectations for the future economic development of the company. In doing so, he also addressed SGL Carbon's growth markets in detail. "Over the past two years, we have made SGL fit for the future. With our products, we serve industries that significantly reflect the trends for the future: climate-friendly mobility, renewable energies and digitalization," he explained.

After 14 years on the Supervisory Board of SGL Carbon, this was Dr. h.c. Susanne Klatten's last Annual General Meeting as Chairwoman of the Supervisory Board. She had already informed the Company on February 14, 2023, that she would be leaving the Board at the end of this Annual General Meeting. As the largest shareholder, Dr. h.c. Klatten will remain associated with SGL Carbon through SKion GmbH.

As proposed, the Annual General Meeting elected Prof. Dr. Frank Richter as a shareholder representative on the Supervisory Board to succeed Dr. h.c. Susanne Klatten. Following the Annual General Meeting, the constituent meeting of the Supervisory Board elected Prof. Dr. Richter as Chairman of the Supervisory Board. Prof. Dr. Richter is Managing Director of SKion GmbH, Bad Homburg, which holds a stake of approximately 28.55% in SGL Carbon SE. Furthermore, Ingeborg Neumann, Managing Partner of Peppermint Holding GmbH, Berlin, was elected to the Supervisory Board of SGL Carbon SE for a further term of office.

Carbios has been selected among the 22,000 start-ups in the French Tech ecosystem to represent French innovation at the 6th “Choose France” Summit.  “Choose France” is an international business summit dedicated to the attractiveness of France launched at the initiative of Emmanuel Macron, the President of the Republic. Only ten companies, including Carbios, have been chosen to exhibit their technologies at the Château de Versailles.  On this occasion, Carbios announces that it has joined the Coq Vert community launched by Bpifrance in partnership with ADEME^[1] and the Ministry of Ecological Transition, to connect with other environmentally committed business leaders and advance its international deployment.

“With INRAE^[2], we chose to highlight Carbios at the Choose France summit as a symbol of French economic dynamism,” comments Philippe Gassmann, Secretary General Choose France 2023 (French Treasury). ” With its innovative “Made in France” biotechnologies that bring plastic into the circular economy, Carbios illustrates the wealth of  innovation within the French cleantech ecosystem.  I thank Carbios for its ambassadorship for this ecosystem to the 200 foreign guests attending the 6th Choose France Summit with the theme: Investing for a sustainable future.”

“Carbios is honored to have been selected by the Elysée Palace for Choose France.  This international summit provides an opportunity for meetings between the President of the Republic, members of the Government and the leaders of major foreign and French companies to discuss France’s economic ambitions and attractiveness,” commented Emmanuel Ladent, Chief Executive Officer of Carbios. “Carbios is in the midst of a major industrial rollout, with a first plant planned in the Grand Est region, and the international commercial deployment of our processes.  We are very grateful for the French Government’s support at this strategic time for the company.”
(Emmanuel Ladent, CEO, and Alain Marty, Chief Scientific Officer, representing Carbios at Choose France)

The Coq Vert community
Launched by Bpifrance, in partnership with ADEME and the Ministry of Ecological Transition, this community brings together 2,000 members who are players in sustainable development and are convinced of the need to act for energy and ecological transition.

^[1] ADEME = The French Agency for Ecological Transition
^[2] INRAE = France’s National Research Institute for Agriculture, Food and Environment

Klaus Steger (64), CEO of ERWO Holding AG (“ERWO Holding”) and Hoftex Group AG (“Hoftex Group”), will step down from the Management Board of both companies at the beginning of 2024 in accordance with internal policies of the family and the company regarding the retirement age. Already on June 30, 2023, ERWO Holding Management Board member Hans-Georg von Schuh will retire as planned. ERWO Holding Management Board member Manfred Heinrich will also leave the Board as planned at this time and will continue to hold his mandate as one of the managing directors in the Südwolle Group together with Stéphane Thouvay and Johannes Rauch.

Steger’s designated successor as CEO of both companies is Manuela Spörl (50), currently CFO of ERWO Holding and also CFO of Hoftex Group. Hoftex Group is a group of medium-sized companies in the textile industry, in which ERWO Holding holds a significant stake. In addition, ERWO Holding acts as the parent company of the Südwolle Group, in which the Group’s worsted yarn activities are bundled.

Spörl has a degree in business administration and has been working for Hoftex Group since 2000. Her professional career began in the Corporate Controlling department, and in 2012 she was appointed as an advisor to the Board of Management. She was granted power of attorney in 2015, followed by appointments as CFO of the Hoftex Group in 2020 and CFO of the ERWO Group in 2022. A search for a successor for Spörl in the position of CFO of the Hoftex Group and, subsequently, of ERWO Holding is currently underway. Until the new CFO takes office, the two members of the Management Board, together with the Supervisory Board, will ensure an orderly transition.

The announced change in the Management Board of ERWO Holding, which acts as the parent company of the Südwolle Group, also ensures continuity at the leading manufacturer of worsted yarns for weaving, circular and flat knitting products in pure wool and wool blends. In the future, the management of Südwolle Group will continue to consist of the longstanding members Manfred Heinrich (Technology, Production & Planning), Johannes Rauch (Finance & Controlling) and Stéphane Thouvay (Sales & Marketing and Product Management & Innovation). Together with the designated board member of the parent company ERWO Holding, they will continue the successful development of the Südwolle Group from a mere supplier to a strategic partner of its customers as well as the growth trend of recent years.

The founding family Steger remains involved in the various supervisory bodies of the group of companies and will continue to work closely with them as the sole shareholder of ERWO Holding.

• Sales increase by 4.7% to €283.7 million in Q1 2023
• Adjusted EBITDA improves by 9.0% to €40.1 million
• Growth based in particular on strong demand from the semiconductor industry

SGL Carbon generated Group sales of €283.7 million in Q1 2023 (Q1 2022: €270.9 million). This corresponds to an increase of €12.8 million or 4.7% compared to the same period of the previous year. Increased demand for specialty graphite components for the semiconductor industry from the Graphite Solutions business unit contributed in particular to the pleasing increase in sales. But also the Process Technology and Composite Solutions business units continued their positive business development.

Accordingly, adjusted EBITDA (EBITDApre) improved by 9.0% to €40.1 million in the reporting period (Q1 2022: €36.8 million).

Sales development
In the first three months of fiscal year 2023, the business unit Graphite Solutions was the main driver of SGL Carbon's growth with an increase in sales of €21.3 million or 17.8%. This is due in particular to the reallocation of production capacities from the solar industry market segment to the semiconductor industry. The Process Technology (+€6.6 million) and Composite Solutions (+€4.0 million) business units also contributed to the increase in sales.

The Carbon Fibers (CF) business unit recorded a decline in sales of €24.0 million in the reporting period. The decline is mainly due to the scheduled expiry of the attractive supply contract for the BMW i3 in the middle of last year. Freed-up production capacities were compensated by orders from the wind industry in the 2nd half of 2022. But the necessary construction of wind turbines in Europe is currently stalling. Low building permits and high manufacturing costs are temporarily hampering the construction and expansion of wind parks and therefore the necessary increase in renewable energy.

Earnings development
In line with the sales development combined with higher capacity utilization and positive product mix effects, adjusted EBITDA (EBITDApre) improved from €36.8 million to €40.1 million in Q1 2023, representing a quarter-on-quarter increase of 9.0%.

Taking into account depreciation and amortization of €14.3 million (Q1 2022: €14.1 million) as well as one-off effects and non-recurring items of minus €0.1 million, EBIT in the reporting period amounted to €25.7 million (Q1 2022: €31.2 million). It should be noted that Q1 of the previous year was positively impacted by one-off effects and and non-recurring items amounting to €8.5 million. Accordingly, net profit for the period of €15.3 million was lower than in the same quarter of the previous year (€21.5 million).

Debt, equity and capitel expenditure
Net financial debt increased slightly to €174.2 million as of March 31, 2023 (Dec. 31, 2022: €170.8 million). The leverage ratio remains unchanged at 1.0. Due to the positive consolidated net income, the equity ratio increased again slightly compared to the end of fiscal 2022 to 39.5% (Dec. 31, 2022: 38.5%).

Looking at the capital expenditure in Q1 2023, it amounted to €19.0 million, which is higher than the average values of the previous quarters. "At the beginning of 2023, we had already announced the expansion of our investment activities to expand production capacities in the Graphite Solutions business unit. In previous years, our capital expenditure was in line with depreciation and amortization. In addition to these approximately €60 million, we will invest further €20 to €30 million in 2023, which will be financed by advance payments in the context of long-term supply contracts from our customers in the semiconductor industry. Our semiconductor customers secure future production capacities for graphite components, which are needed for their own growth. In return, SGL Carbon's long-term supply contracts will enable future profitable growth," said Dr. Torsten Derr, CEO of SGL Carbon.

Outlook
In line with the business performance in the first three months of 2023, the company confirms the sales and earnings guidance issued on March 23, 2023.

For the financial year 2023, Group sales are expected to be at the prior-year level and  EBITDApre between €160 - 180 million. Taking into account depreciation and amortization, EBITpre is forecast to be between €100 - 120 million. Furthermore, free cash flow at the end of fiscal 2023 is expected to be at the prior-year level and return on capital employed (ROCE) between 10% and 12%.

Around EUR 355 million in overall turnover, 350 extruders delivered creating an additional recycling capacity for 1.6 million tons of recycled pellets as a result - these are the figures with which the EREMA Group was able to close the 2022/23 financial year in March.

"With demand for recycled plastics remaining high, the past financial year brought many challenges that we needed to handle," says Manfred Hackl, CEO of EREMA Group GmbH. The challenges included persistent delays in the supply chain and unexpected supplier outages. Logistics and production processes had to be adapted several times as a result. The situation has improved significantly meantime as a result of these measures and more stable supply chains.

The production locations in Austria manufactured 270 extruders and delivered them to customers around the globe. Taking the whole group into consideration, this figure rises to 350 including the extruders from PLASMAC, the Italian subsidiary. The recycled pellet production capacity of all extrusion systems delivered in financial year 2022/23 adds up to around 1.6 million tonnes per year. On top of that there are around 130 additional components and modules such as filter systems and ReFresher anti-odour units.

Recycling innovations for high-quality pellets
K 2022 - the highlight trade fair of the past financial year - saw the EREMA Group launch seven
new recycling systems and components. These included the new INTAREMA® TVEplus® DuaFil® Compact recycling system and the EcoGentle® plasticising unit, which was also newly developed. Thanks to their gentle polymer treatment and significantly lower melt temperature, both extrusion innovations deliver effective advantages in terms of the quality of the melt, recycled pellets, and final product, as well as impressive energy efficiency in post consumer and PET recycling applications. The significance of these innovations for plastics recycling is underlined by the nomination of the DuaFil® Compact technology for one of this year's Plastics Recycling Awards Europe in the category Recycling Machinery Innovation of the Year.
The same applies to the READYMAC 1109 TVE machine made to stock by EREMA Group subsidiary UMAC, as well as to the new ALPHA XS edge trim recycling machine for the inhouse recycling segment made by PLASMAC. The market launch of the deinking system presented at K 2022 by the EREMA Group company KEYCYCLE delivering a throughput of 1,200 kilograms per hour has been a success, as has the commissioning of a further unit sold to a film manufacturer.

40 years of EREMA
The beginning of the new financial year falls almost to the day on EREMA's 40th anniversary. On 14 April 1983, Helmut Bacher, Helmuth Schulz and Georg Wendelin founded EREMA Engineering Recycling Maschinen und Anlagen GesmbH, laying the foundation for the 40-year success story. In celebration, the comapny will hold the event EREMA Discovery Day at the company headquarters on the 1st of June. This event with live insights into the latest post consumer and PET recycling technologies will also see the official opening of the newly built research and development centre.

Archroma, a global leader in sustainable specialty chemicals and solutions for the textiles, packaging & paper, paints and coatings industries, announced its transition plan for the role of Chief Executive Officer (CEO). Heike van de Kerkhof, CEO of Archroma since January 2020, will step down effective April 30, 2023, to focus on other career opportunities. Mark Garrett, a seasoned industry executive, will assume the role of interim CEO.

Miguel Kohlmann, Chairman of the Board of Directors of Archroma, said “On behalf of the Board of Directors, I would like to thank Heike for her leadership and tireless dedication to Archroma. Heike joined the company in January 2020 as CEO and has meaningfully advanced the company’s sustainability, innovation, and customer-focused business model, while also successfully closing the transformational acquisition of Huntsman’s Textile Effects business, which will substantially enhance Archroma’s capabilities in serving its customers and markets. We would like to thank Heike for her great contributions through this substantial period of growth and wish her continued success in her next endeavors.”

Kohlmann continued, “The Board remains committed to accelerating the growth of Archroma and to continuing to provide our customers with the systems, solutions, innovation and technical support that they have come to expect from us, while providing enhanced opportunities for Archroma’s employees. We are enthusiastic about Mark Garrett joining Archroma as interim CEO, a seasoned executive who brings substantial industry experience which encompasses directly relevant knowledge of Archroma’s product portfolio and end markets. Mark has served in the capacity of Chairman and CEO and in senior executive leadership roles with companies such as OMV/Borealis, Marquard & Bahls, Ciba Specialty Chemicals and DuPont. He is a proven leader and the perfect choice to serve as Archroma’s interim CEO. The Board has strong confidence in Archroma’s leadership team and is focused on continuity during this period of transition.”

The diabetic community has always been a priority for Hologenix, creators of CELLIANT® infrared technology, so the company embarked on an initial study to test the hypothesis that the technology can positively impact diabetic patients with vascular impairment, now published in Journal of Textile Science & Engineering. Another study is underway as well with more research on the horizon.

According to statistics cited in the International Diabetes Federation Diabetes Atlas, 9th edition, globally, close to a half billion people are living with diabetes and that number is expected to increase by more than 50 percent in the next 25 years.
 
The introduction of the study in the Journal of Textile Science & Engineering also reports that diabetic patients frequently suffer from a combination of peripheral neuropathy and peripheral artery disease, which particularly affects their feet. It further states that it has been estimated that the lifetime risk for the development of foot ulcers in diabetic patients can be as high as 25 percent and that the risk of amputation is 10 to 20 times higher than in non-diabetic subjects.
 
The study was performed by Lawrence A. Lavery, D.P.M., M.P.H., a Professor in the Department of Plastic Surgery at UT Southwestern Medical Center. His clinic and research interests involve diabetic foot complications, infections and wound healing, and he participated in the conception, design, implementation and authorship of the Journal of Textile Science & Engineering study.  

CELLIANT technology is a patented process for adding micron-sized thermo-responsive mineral particles to fibers, in this case polyethylene terephthalate (PET) fibers. The resulting CELLIANT yarns were woven into stockings and gloves containing either 82% CELLIANT polyester, 13% nylon and 5% spandex or for the placebo, 82% polyester with no CELLIANT, 13% nylon and 5% spandex. CELLIANT products absorb body heat and re-emit the energy back to the body as infrared energy, which is non-invasive and increases temporary blood flow and cell oxygenation levels in the body.

The objective of the study was to “evaluate changes in transcutaneous oxygen (TcPO2) and peripheral blood flow (laser Doppler, LD) in the hands and feet of diabetic patients with vascular impairment when CELLIANT gloves and stockings are worn.” While there was not a statistically significant result across all subjects, the study did show that some patients wearing CELLIANT stockings for 60 minutes had an increase of as much as 20% in tissue oxygenation and 30% in localized blood flow. According to the study’s conclusion, “the trends that were observed in favor of CELLIANT stockings suggest that a larger well-designed clinical trial should be undertaken and may provide evidence of clinical efficacy in treatment of the diabetic foot.”
 
The study also notes that “There have been no documented or observed side effects of wearing CELLIANT stockings, and they are relatively inexpensive compared to conventional pharmaceutical interventions.”

Hologenix has embarked on a more comprehensive trial, “Study to Evaluate CELLIANT Diabetic Medical Socks to Increase Tissue Oxygenation and Incidence of Complete Wound Closure in Diabetic Foot Wounds” – NCT04709419, which focuses on the impact of CELLIANT technology to potentially improve tissue oxygenation and wound healing outcomes.
 
“We are excited to explore whether future studies of infrared, with its most common biological effects of increased localized blood flow and cellular oxygenation, could result in a breakthrough in diabetic patients with vascular impairment,” said Seth Casden, Hologenix Co-founder and CEO. “We see a huge potential opportunity with this research for helping to fulfill our core mission of improving people’s health and well-being by potentially reducing the impact of diabetes, and we are actively seeking partners to expand our research efforts.”