From the Sector

Tata Communications, a global digital ecosystem enabler, has been recognised by global environmental non-profit organisation, Carbon Disclosure Project (CDP) with the distinguished ‘A-’ leadership score for implementing current best practices in sustainability for climate change. Tata Communications score is higher than the global average of ‘C’ and higher than the Asia region average of ‘D’. The Company scores the highest global score for playing a leading role in Climate Change governance, value chain management, energy efficiency, risk and opportunity disclosures in CDP 2020 reporting.

Tata Communications is among the top 34% companies globally to have received the leadership score for best practices out of 9,600+ companies that reported environmental disclosures this year. The scores are attributed basis a comprehensive peer benchmarking and sustainability performance.

The company made some strategic shifts in implementing several energy efficiency measures and this recognition reaffirms its focus on sustainability. In fiscal 2020, Tata Communications sourced approximately 15 million units of renewable energy and implemented emission reduction initiatives resulting in energy savings to the tune of 0.8 million units.

Tata Communications Sustainability strategy is based on the three facets of environment, social and governance (ESG) principles. The Company’s objective is to drive value creation for its stakeholders and drive sustainable business growth by managing risks and embracing opportunities, implementing robust governance practices and optimising the economic, environmental and social performance.

Flax has accompanied people for thousands of years, in linen fabrics, in ropes, as insulation material. And until the present day. With woven tapes made of flax, vombaur makes the functional and ecological advantages of natural fibres available for lightweight design.

Lightweight and firm
Flax fibres are particularly rigid and tear-proof. Textiles made of the natural material therefore give natural fibre reinforced plastic (NFP) special stability. Additionally, flax has a low density. The components thus combine high rigidity and strength with low weight. Another functional plus: natural fibre reinforced plastics are less prone to splintering than glass fibre reinforced plastics.

Sustainable material
The cultivation of flax binds CO2 and the production of NFP generates 33 percent lower CO2 emissions than conventional fibre reinforced plastics. The energy consumption is 40 percent lower. This reduces production costs and improves the material's CO2 footprint. Punch-packing arguments for natural fibre tapes – like flax tape by vombaur – in lightweight design applications.

Circular Economy
Circular Economy – this also works in lightweight design. The number of recycling cycles without loss of quality is higher for natural fibre reinforced plastics than for glass or carbon fibre reinforced plastics: the thermoplastic matrix of the composite can be melted and recycled after a product life cycle. The natural fibres can "live on" in other products – injection moulded products for example.

Versatile applications
"Composites from our flax tapes are used to reinforce high-tech skis as well as for extruding state-of-the-art window sections – the applications are countless," explains Tomislav Josipovic, Sales Manager with vombaur. "As a development partner, we support applications for the automotive, wind energy, construction, sports and many other industries with our composite textiles."

Sicomin’s latest marine collaboration with Sonntag Fins sees its industry leading GreenPoxy® 33 bio-based epoxy resin used for custom carbon fibre windsurf fins - combining speed, fatigue performance and sustainability for some of the fastest sailors afloat.

Targeted at windsurf slalom sailors, racers and speed sailors, each Sonntag fin is a custom made product, tailored specifically to the user based on a discussion about riding style, physical size and weight, as well as how the rider likes to load the fin whilst sailing.  This attention to detail and bespoke manufacturing places a huge importance on the performance and consistency of the raw materials used, with all new materials having to be validated in production, on the test rig in the lab, and on the water by the team riders.

With this in mind, Sonntag Fins approached Time Out Composite, Sicomin’s German distributor,  looking for a new resin system that could reduce cycle times and improve manufacturing output.  Bio-based systems were discussed, but the first product used by Sonntag was Sicomin’s SR1280 laminating system which delivered immediate results, enabling shorter cure cycles, and exceeding all of the previous mechanical test targets.

In 2020, Sonntag and Time Out Composite revisited the topic of a more sustainable epoxy resin system. It was the perfect time for Sonntag Fins, with their new unique bright green UV resistant outer finish, to go green on the inside too with Sicomin’s GreenPoxy® 33 resin.

Test fins were produced with the new material performing well in production trials. Pure resin samples were also tested and post-cured at 140 ̊C, with the new GreenPoxy® 33 samples showing significantly higher elongation at maximum resistance, meaning the cured epoxy was less brittle and susceptible to damage should a customer’s fin meet a rock. With mechanical properties improved, Sonntag switched production to GreenPoxy® 33 in August 2020.

Sonntag fins are manufactured in CNC machined aluminium moulds using GreenPoxy® 33 and a bespoke lay-up of woven, stitched biaxial and heat-set unidirectional carbon fibre fabrics in four steps:
• The first step in the moulding process is the application of Sonntag’s unique green in-mould coating.
• Next, the individual fabric plies, cut using precisely machined templates, are placed into the mould and then wet-out with the low viscosity epoxy. With the laminate stack complete, the mould is closed and loaded into a heated press for around 2 hours to consolidate and cure the fin.
• After curing, the demoulded fins are tempered in an oven at 140 ̊C, then only a light sanding is required to create the final surface roughness for optimum flow characteristics in the water.
• Finally, the fins are cut to the required length and the base adapter is molded to the epoxy-carbon blade in a specific mould.
With each fin being optimized for its rider, it is critical that each piece produced will bend and twist in exactly the way it has been designed to do so, providing the rider with exactly the feel and feedback they want for their board and fin. Each Sonntag fin is tested on a unique CNC controlled servo and stepper motor driven test bench that Joerg has developed, building a database of test results that not only ensures the products perform as designed but also validating the consistency of the manufacturing process and raw materials.
“We produce high-performance windsurfing fins that need to accommodate significant loads during sailing. Fins need to combine flexibility with extremely high torsion stiffness that places high interlaminar shear forces on the resin, especially in our softer fins.” commented Joerg Sonntag, MD, Sonntag Fins. “A key requirement for us is a resin that maintains its mechanical properties for many years, and this is where the Sicomin systems deliver”

• Carbon fibers combined with injection molding replace conventional steel construction
• SGL Carbon supplies innovative carbon fiber profiles
• Serial use in a future high-volume model of BMW Group
• Construction method offers great potential for use in other automotive projects

Already in August, SGL Carbon received a multi-year order from Koller Kunststofftechnik GmbH for the production of novel carbon fiber profiles for serial use in windshields for a future high-volume model of BMW Group.

The profiles are particularly flexible fiber tows, pre-impregnated with thermoplastic resin in various dimensions. They will be compiled by SGL Carbon on the basis of its own 50k carbon fiber at its site in Innkreis, Austria, and subsequently processed by the injection molding experts at Koller to form a skeletal plastic component. The composite component will replace the previous steel-based windshield. Production of the carbon fiber profiles will start in the remainder of 2020 and will then be ramped up gradually over the next few years for the BMW Group model launch.

In the vehicle, the windshield is a connecting element between the roof frames and thus has an important stabilizing function. The carbon fiber profiles add the required stiffness and crash safety to the component. At the same time, they help to significantly reduce the weight of the roof and thus also support the driving dynamics. The injection molding process also enables particularly complex and material-efficient structures. In the BMW Group model, this innovative component concept will cut weight by 40 percent compared to conventional steel designs of the component while creating important space for cable ducts and sensors.

The production of the carbon fiber profiles themselves is also particularly geared to material and process efficiency in large-scale production. The profiles consist of several smaller fiber strands, the so-called rods, and are manufactured using the modern continuous pultrusion process. During product and process development it was one key objective to ensure that material loss during production is almost completely avoided.

"At SGL Carbon, we have been working on the development of thermoplastic carbon fiber profiles for use in injection molding for some time already. This development work is now beginning to pay off. Due to the many advantages and competitive costs, we see a great potential for the technology to be used in other automotive projects too," explains Sebastian Grasser, Head of the Automotive Segment in the Business Unit Composites - Fibers & Materials at SGL Carbon.

"Innovative lightweight construction with hybrid designs has developed into a strategically conclusive concept for Koller Group's OEM customers," confirms Max Koller, CEO of Koller Group. "SGL Carbon's high level of material expertise, combined with the process know-how of KOLLER Kunststofftechnik and KOLLER Formenbau, create the basis for a promising future in innovative lightweight construction technologies. With this order, the BMW Group has confirmed its confidence in the successful cooperation between SGL and Koller; we are particularly pleased about this", said Max Koller.
 
The Koller Group is a globally operating technology company with plants in Europe and China, as well as NAFTA. The Koller Group develops and manufactures lightweight construction, tools and serial components, primarily for the automotive industry.

• Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, today announced that, for the first time, Dyneema® Composite Fabrics are used by Moncler in the Fall/Winter 2020 Grenoble collection, which fuses form and function into high performance skiwear.

Moncler Grenoble is born of a passion for research and implements cutting-edge technology to push the limits of its potential. The design team identified Dyneema® as an innovative fabric it could use to push the level of its performance to the next peak, incorporating the material into the new collection as a departure from the conventional use of cotton and polyester.

Sandro Mandrino, the Head of Design for Moncler Grenoble, was the first designer of the luxury fashion brand to incorporate Dyneema® into one of his creations through the Moncler Genius project. The Moncler Genius project advocates radical co-creation where multiple designers create their own signature collections in collaboration with the house. Together, these collections translate into one vision of the future and, as one of the nine designers, Mandrino’s interpretation of the future of fashion features Dyneema® Composite Fabric.

Using variations of the fabric in both white and black allowed Mandrino to bring his vision to life by merging skiwear, space suits and technology all in one. “ 3 Moncler Grenoble is first and foremost about performance,” states Mandrino, who integrated constructive solutions with fabric technology to develop a line that was meant to perform both on and off the ski slopes.

Dyneema®, the world’s strongest and lightest fiber, is 15 times stronger than steel yet light enough to float on water. The unmatched performance and protection of products made with Dyneema® have made it the material of choice in critical applications where failure is not an option for more than 30 years. In fabric form, Dyneema® is available in composites, denim, knits, wovens and hybrids for composite reinforcements. And because Dyneema® fabrics are made using Dyneema® fiber, they intrinsically provide high strength, low weight, waterproof and breathable properties – allowing designers to fuse the technical performance of ultra-light products with aesthetic design that doesn’t sacrifice strength or durability.

The Moncler team used the Grenoble collection as an opportunity to experiment and further understand the nature and behavior of Dyneema® fabrics, while simultaneously incorporating material performance with practical design. “Future collections will focus on expanding to new designs and fabric options in collaboration with DSM,” adds Mandrino.

“We are very excited to be working with the Moncler team to launch a collection of wonderful garments that allow people to explore the outdoors more safely and for longer periods of time,” states Marcio Manique, Global Business Director, Consumer & Professional Protection, DSM Protective Materials. “We look forward to further supporting Moncler as they develop innovative, high-tech garments that are also sustainably sourced through the introduction of bio-based Dyneema® fabrics.”

In line with DSM’s commitment to protect people and the environment they live in, the world’s first-ever bio-based ultra-high molecular weight polyethylene fiber was introduced in May 2020. Bio-based Dyneema® boasts the same exact performance as conventional Dyneema® with a carbon footprint that is 90 percent lower than generic HMPE. DSM and Moncler’s continued partnership will not only provide high performance, light weight garments for outdoor enthusiasts but also environmentally sustainable alternatives that contribute to a more circular economy.

• Composite textiles for modern mobility
• Extremely lightweight, high tensile components by vombaur

In the snow, on a plane, in an electric vehicle or on a bicycle: no matter where and how we are on the road – composite textiles by vombaur ensure that we make good progress. With materials that are both extremely light and extremely reliable.

Lightweight components for modern mobility
Modern mobility relies on high-tech lightweight components Narrow textiles by vombaur are woven from high-performance fibres. On looms that are specially made for particularly demanding composite textiles: the textile company uses special machines to produce high-tech woven tapes with closed selvedges and elasticated UD tubulars that retain their 0° orientation over the entire length of the component – regardless of the diameter. Since they do not exhibit undesired break points caused by seams or welding, they not only have a particularly high bursting strength, they are also extremely reliable and durable.

Challenging applications
"From snowboards to aerospace – the applications for our composite textiles are demanding; the mechanical, chemical and thermal requirements are extreme," explains COO Christoph Schliefer. "As a development partner, we at vombaur are therefore often involved in product development at an early stage. We specify our woven tapes and tubulars individually for each project to suit the specific task at hand."

High quality raw materials, wide variety of geometries
The variety of shapes is virtually unlimited. vombaur manufactures 3D fabrics for composites in individual special shapes from carbon, aramid, glass or hybrids. Curves, edges, tubulars, spiral fabrics – the shape of the 3D fabrics, like the material itself, depends entirely on the task at hand. Powder or non-woven coatings create additional important properties.

Pioneering tech tex
"Developments in the field of modern mobility are happening at a rapid pace," emphasizes Schliefer. "With our composite textiles for extremely lightweight and high tenacity components, we at vombaur are also pushing these developments forward."

An impairment charge has become necessary based on the current status of the new 5 year plan.

(Market Abuse Regulation N° 596/2014)
•    Impairment loss amounting to €80-100 million in the fourth quarter 2020 in the business unit CFM
•    Restructuring program resolved with savings target of more than €100 million until 2023
•    Guidance 2020 for Group sales and operating recurring Group EBIT confirmed
•    Guidance 2020 for net result reduced to minus €130-150 million

In the current status of the 5 year plan, which is at present under preparation, significant deviations have already become apparent today, particularly in the market segments Automotive, Aerospace and Wind Energy in the business unit Composites – Fibers & Materials (CFM). Partially also due to the pandemic, Automotive and Aerospace is developing slower than anticipated in the last 5 year plan. In contrast, business with Wind Energy is growing much stronger than previously planned. These changes in the product mix lead to lower mid-term earnings at CFM compared to the prior 5 year plan. Following these deviations from the last 5 year plan, an event-driven impairment test was undertaken. This results in a non-cash impairment charge amounting to €80-100 million, which will be recorded in the fourth quarter 2020.

The Board of Management of SGL Carbon SE today also resolved the implementation of a restructuring program, with which the Company is targeting savings of more than €100 million until 2023 (compared to the base year 2019). These savings consist of a planned socially compatible reduction in personnel of more than 500 employees and substantial reduction in indirect spend, particularly in the areas of travel, consulting and external services. Costs of approximately €40 million are anticipated for the implementation of this restructuring program. A little more than half of this is expected to be recorded as expenses in the fourth quarter 2020, while the associated cash outflows are mainly forecasted for 2021.

This requires a partial adjustment of the guidance for 2020. The solid operational development in the third quarter 2020 with Group sales between €220 and €230 million and operating recurring EBIT1 between €13 and €15 million (plus approximately €9 million positive one-time effects) is within the framework of our expectations for the full year 2020. However, the Group net result is likely to develop below the prior year level of minus €90 million and reach approximately between minus €130 and €150 million due to the restructuring provisions as well as the impairment charge (prior guidance: improvement to a negative low double-digit million € amount).

With liquidity of €167 million as of September 30, 2020 (compared to €137 million at year-end 2019) and further cash inflows in the fourth quarter 2020 from successfully implemented additional funding measures, the Company’s position is solid. This liquidity is more than sufficient for the payment of the purchase price for SGL Composites USA in the amount of USD 62 million at the end of 2020 as well as the restructuring-related cash outflows expected mainly in 2021. The Company continues to have access to the revolving credit facility (RCF) in the amount of €175 million, which remains undrawn.

The quarterly statement as of September 30, 2020 will be published on November 12, 2020 as scheduled. Further details on the new 5 year plan as well as the guidance on the fiscal year 2021 will be presented with the publication of the Annual Report 2020 on March 25, 2021.

*The use of KPIs in this notification is aligned to the annual report 2019 and the interim report for the first half year 2020. There were no changes to the scope of consolidation or to valuation methods compared to the previous guidance.

The Cetex Institut gGmbH, the thermoPre ENGINEERING GmbH and The FilamentFactory GmbH cooperate in the development, production and marketing of novel hybrid materials. The cooperation agreement signed on October 2, 2020 in Chemnitz takes the collaboration to a new level. "We are pleased to be able to supply the hybrid rovings to the end user not only in an application-specific manner, but also to offer the engineering for subsequent component applications, including the prototyping of the FRP components," says Sebastian Nendel, Managing Director of Cetex.

Patented process for the production of hybrid rovings
In the last 3 years the Cetex Institute has developed a plant technology for the production of hybrid rovings. By means of the patented process, different material combinations can be produced according to customer specifications. Material combinations of reinforcing fibers (glass, basalt, carbon, aramid or high-strength polymer fibers) can be combined with matrix fibers (PP, PET, PA, PPS, PEEK), but also special combinations of different reinforcing fibers or the combination of reinforcing fibers with metal fibers. Advantages of the new hybrid roving are the torsion-free and completely stretched fiber layer and the associated optimal utilization of the properties of the reinforcing fibers, as well as a very good homogeneity, whereby excellent processing can be achieved in later process steps.

Series production as next step
The next goal is clearly defined: Under the agreement, the process is to be jointly developed further by the project partners and transferred to series production. These joint activities form the basis for many years of intensive cooperation in this new field.

As reported on August 17, 2020, the Supervisory Board of SGL Carbon SE had appointed Thomas Dippold to CFO and member of the Board of Management of SGL Carbon SE effective December 1, 2020. Fortunately, Mr. Dippold is able to assume office of his mandate as member of the Board of Management of SGL Carbon SE earlier, so that the Supervisory Board of the company has brought forward the appointment to October 15, 2020, also to prepare for the planned assumption of the CFO position.

As previously reported, and effective December 1, 2020, Mr. Dippold is succeeding the long-standing CFO Dr. Michael Majerus, who is resigning from his office effective November 30, 2020 by mutual amicable consent.

As planned, Dr. Stephan Bühler resigned from his office as member of the Board of Management effective October 15, 2020.

True Temper Sports, leading designers and manufacturers of golf shafts, has chosen to partner with Hexcel on its latest product line, the HZRDUS Smoke Black RDX. The HZRDUS Smoke Black RDX is the first golf shaft to use Hexcel’s new HexTow® HM54 carbon fiber, which is ideal for recreational applications.

HZRDUS has emerged as one of the most dominant shafts at all levels of golf over the past 50 years, and the RDX is the next evolution in the HZRDUS line. By partnering with Hexcel to incorporate HexTow HM54, True Temper has taken its designs to the next level. HZRDUS Smoke Black RDX is the first golf shaft to use HexTow HM54 high modulus carbon fiber and combines it with high tensile strength HexTow® IM2C carbon fiber to provide the ideal blend of stiffness and stability desired by engineers to build into the HZRDUS shafts.

True Temper Sports is the No. 1 shaft in golf. It has been used to win more professional golf tournaments than any other shaft manufacturer. True Temper Sports offer shafts under the True Temper, Project X, ACCRA, Aerotech, and Grafalloy brands.