From the Sector

• CO₂ emissions will be reduced by 320,000 tons per year
• First supplier of wood-based cellulosic fibers in China to completely eliminate coal
• Share in eco-responsible specialty fibers will be significantly increased
• Lenzing is strategically well on track with these investments

The Lenzing Group, the leading global supplier of wood-based specialty fibers, will invest more than EUR 200 mn in its production sites in Purwakarta (Indonesia) and Nanjing (China) to convert existing standard viscose capacity into environmentally responsible specialty fibers.

In Nanjing (China) Lenzing will establish the first wood-based fiber complex in China that is independent from coal as an energy source. By using natural gas based cogeneration, Lenzing will reduce CO₂ emissions at the site by more than 200,000 tons. At the same time a line of standard viscose will be converted to a 35.000 tons TENCEL™ branded modal fibers line making Lenzing (Nanjing) Fibers Co., Ltd a 100 percent wood-based specialty fiber site by the end of 2022.

In Purwakarta (Indonesia), Lenzing will reduce its CO₂ emissions by increasingly using biogenic fuels. Additional investments to reduce emissions to air and water will make this facility fully compliant with the EU Ecolabel by the end of 2022. That will allow converting standard viscose capacity into LENZING™ ECOVERO™ branded fibers for textile applications as well as LENZING™ Viscose Eco fibers for personal care and hygiene applications. As a result, the site in Indonesia will also become a pure specialty viscose supplier as of 2023.

Both investments are fully in line with Lenzing’s target to reduce its greenhouse gas emissions per ton of product by 50 percent by 2030. By avoiding or reducing the use of fossil fuels at the two sites, the Lenzing Group will be able to reduce CO2 emissions by more than 320,000 tons in total, or 18 percent, compared to 2017. In addition, this investment allows Lenzing also to reduce its total sulfur emissions by more than 50 percent, compared to 2019.

Together with its major lyocell fiber project in Thailand, Lenzing will also boost its share in specialty fibers as a percentage of fiber revenues to well above the targeted 75 percent already by 2023, which in turn is an important step towards achieving the company’s EBITDA target of EUR 800 mn by 2024.

Oerlikon signs agreement to acquire INglass, a global leader in high precision polymer flow control equipment, to accelerate expansion strategy in polymer processing market

• INglass and its HRSflow Division is a market leader spezialized in hot runner sytems
• Technology is highly complementary to Oerlikon’s existing capabilities in polymer flow control and will expand Oerlikon’s market access
• Acquisition accelerates Oerlikon’s strategy in diversifying its manmade fibers business to expand into the high-growth polymer processing solution market
• Oerlikon renames ‘Manmade Fibers’ Division to ‘Polymer Processing Solutions’
• Acquisition is expected to be completed in the second quarter of 2021

Oerlikon, a leading provider of surface engineering, polymer processing and additive manufacturing, announced today that it has signed an agreement to acquire Italy-headquartered INglass S.p.A. and its innovative hot runner systems technology operating under its market-leading HRSflow business.

The strategic acquisition is a significant step in expanding Oerlikon’s current manmade fibers business into the larger polymer processing market. The acquisition accelerates and enhances existing organic initiatives to diversify and strengthen the company’s core high-precision polymer flow control capabilities, products and services. The completion of the transaction is subject to customary regulatory approvals and is expected by the second quarter of 2021.

To reflect Oerlikon’s expansion into a larger high-growth market, the Manmade Fibers Division will be renamed as Polymer Processing Solutions Division. This division will have two business units: Flow Control Solutions and Manmade Fibers Solutions. The busines unit Flow Control Solutions will combine the expertise of Oerlikon Barmag’s existing gear metering pumps business line and INglass’ HRSflow operations. The business unit Manmade Fibers Solutions will continue to focus on growing the existing chemical fiber machinery and plant engineering business, offering plant solutions for the production of polyester, polypropylene and polyamide.

“Our new Polymer Processing Solutions Division and the acquisition of INglass S.p.A. and its HRSflow business are critical components of Oerlikon Group’s growth strategy. We are accelerating our efforts to drive sustainable organic and inorganic growth in all of our businesses. The acquisition enables new synergy opportunities between both Oerlikon divisions in specific end markets such as automotive. With INglass and its HRSflow operations, we acquire leading suppliers in their markets with proven success of their technologies and services,” said Dr. Roland Fischer, CEO Oerlikon Group.

“We firmly believe that within the Oerlikon Group we can further exploit the potential of our hot runner systems technology and, when combined with the capabilities of Oerlikon Barmag gear metering pumps and their melt distribution engineering competence, will position our business as one of the leading precision flow control specialists for multiple applications in a global growth market”, said Antonio Bortuzzo, CEO of INglass S.p.A.

New business unit offers great growth potential

The Oerlikon Barmag competence brand already offers high precision flow control related components, including a large selection of gear metering pumps for textile and non-textile markets. These highly efficient pumps are used in silicone casting, dynamic mixing and oil spraying for the chemical, paint, polymer processing and automotive industries. This double-digit million CHF business, which has grown in recent years, will be merged with INglass’ HRSflow hot runner technologies under the new business unit Flow Control Solutions. HRSflow’s excellent market access to many OEMs in and outside the automotive industry brings significant growth opportunities.

INglass is a leader in automotive and expanding in other sectors

INglass S.p.A. is an internationally operating successful company established in 1987. Its product portfolio includes hot runners as well as engineering and consultancy services for the advanced development of polymer processing products. INglass’ HRSflow hot runner systems are applied in multiple industries from automotive, consumer goods and household appliances to packaging, waste management, construction and transportation.

INglass is headquartered in San Polo di Piave, Italy, near Venice. 2020 revenues of INglass were approximately CHF 135 million and the acquisition is expected to be immediately accretive to Oerlikon’s margins and cash flows. INglass has more than 1 000 employees and 55 sites worldwide, including production plants in Italy, China and the US. Among these sites are INglass’ newly renovated headquarters and production at its primary location in San Polo di Piave near Venice, Italy. The investment modernized the facilities with automated production, underlining the company’s commitment to sustainability and the environment. The other two modern production sites are in Zhejiang (Hangzhou Province) in China and Michigan (Grand Rapids) in the USA.

Following the integration with Oerlikon Barmag’s gear metering pumps business of about 200 employees in Remscheid, Germany, the new Flow Control Solutions business unit will have round about 1 200 employees.

"We see great potential for growth in our new Flow Control Solutions business unit,” said Georg Stausberg, Polymer Processing Solutions Division CEO and Member of the Executive Committee of the Oerlikon Group. “The businesses form the two core growth pillars and benefit from each other in global market development, in modern and digitized production, and in customer services. We also see potential synergies in R&D by combining existing know-how in the field of polymer processing. New technological solutions between hot runner systems and gear metering pumps are conceivable. We also anticipate collaborating more closely with the Oerlikon Surface Solutions Division, particularly in future mobility applications and functional polymer component solutions for the automotive industry. All in all, we will offer our customers innovative and attractive solutions in the field of polymer processing and high precision flow control components.”

Next steps for further diversification of the division product portfolio are already ongoing

Combining the divisions plant engineering and process know how with expertise on high precision flow control components technologies has a significant impact on product quality in nearly all applications, which opens up a platform for further organic and inorganic growth. "We are closely observing the megatrends in the markets and developing new business models to match. In the area of sustainability, covering topics such as circular economy, the recycling of materials using mechanical and chemical recycling solutions, as well as the handling of new, more environmentally friendly and biodegradable materials, we are on the verge of a breakthrough. We are ready to actively participate in these growth areas,” added Georg Stausberg.

“In realigning the Polymer Processing Solutions Division, Oerlikon will continue to apply our successful recipe of a lean organizational structure to efficiently manage the business. This means clear processes, short decision-making paths and competent teams in a diverse and multicultural organization in which everyone can contribute innovatively to create customer value,” said Georg Stausberg.

• Successful measures to fight against the COVID-19 pandemic with a focus on the safety and health of employees, customers and partners and securing sustainable business development
• Implementation of strategic investment projects and climate targets progressing on schedule – launch of first TENCEL™ branded carbon-zero fibers
• New level of transparency in the textile industry: introduction of blockchain technology
• Target setting: Lenzing raises the bar even higher and sets new sustainability goals

The Lenzing Group presented its Sustainability Report 2020 on April 22, 2021, World Earth Day. Featuring the title “Stand up for future generations”, Lenzing once again emphasized its commitment to taking responsibility beyond the products it makes. The non-financial report, prepared in accordance with the reporting standards of the Global Reporting Initiative (GRI) and the Austrian Sustainability and Diversity Improvement Act (NaDiVeG) and reviewed by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, illustrates how the company is responding to the global challenges of our time.

The 2020 financial year of the Lenzing Group was largely dominated by the COVID-19 pandemic. Lenzing took short-term measures to safeguard its business operations and mitigate the effects of fiber prices and fiber demand which came under increasing pressure. The priority was to protect employees and strengthen long-term partnerships with suppliers and customers. Following the current fight against the coronavirus and its consequences, the company continues to move ahead determinedly to achieve its sustainability targets, also against the backdrop of such a difficult market environment.

With the implementation of its science-based targets, the Lenzing Group actively contributes to mastering the problems caused by climate change. In 2019, Lenzing made a strategic commitment to reducing its greenhouse gas emissions by 50 percent per ton of product by 2030. The overriding target is to be climate-neutral by 2050.*

The launch of the first carbon-zero TENCEL™ fibers certified as CarbonNeutral® products in accordance with The CarbonNeutral Protocol – the leading global framework for carbon neutrality – represents another important milestone from the reporting year. As of June 2021, Lenzing will also market the first VEOCEL™ branded lyocell fibers as certified CarbonNeutral® products.

Promoting the circular economy
Lenzing also sets standards for the entire fiber, textile and clothing industry with respect to the circular economy which is of such crucial importance in climate and resource protection. In order to enhance resource efficiency and offer a solution for the global problem of textile waste, the company developed the REFIBRA™ recycling technology. REFIBRA™ is the only technology in the world enabling the production of new lyocell fibers on a commercial scale from cotton scraps derived from manufacturing cotton clothing as well as from used garments. In this way, an important contribution is made to promoting circularity in the textile industry.*

New level of transparency in the textile industry
In addition to environmental protection, the issue of transparency along the supply chain poses a major challenge to the textile industry. Working in cooperation with TextileGenesis™, Lenzing offers an innovative solution to ensure greater transparency on the basis of blockchain technology. Following several successful pilot projects with renowned fashion brands, this digital platform was ultimately launched in 2020 to enable the traceability of textiles, from the fiber to all stages of production and distribution. Thanks to the innovative Fibercoin™ technology of the TextileGenesis™ platform, Lenzing and its partners are able to issue so-called “blockchain assets” in direct proportion to the physical fiber deliveries of the brands TENCEL™ and LENZING™ ECOVERO™. These digital assets function like a “fingerprint” and thus prevent adulteration.*

Target setting: Lenzing raises the bar even higher
The Lenzing Group operates in line with three strategic principles within the context of its “Naturally positive” sustainability strategy: partnering for change, advancing circularity and greening the value chain.*

*See attached document for more information..

Based on Article 27 of Regulation 3 on measures to combat the Corona Virus (COVID-19), the Board of Directors of Rieter Holding Ltd. decided that shareholders can exercise their voting rights exclusively by authorizing the independent proxy. Shareholders therefore could not attend the Annual General Meeting in person. The AGM was held on the premises of Rieter Holding Ltd. at the company’s headquarters in Winterthur.

At the Annual General Meeting of Rieter Holding Ltd. on April 15, 2021, the independent proxy represented a total of 2 084 shareholders who hold 63.6% of the share capital.

The shareholders approved the proposal of the Board of Directors not to distribute a dividend in view of the negative business result. In addition, they approved the proposed maximum total amounts of the remuneration of the members of the Board of Directors and of the Group Executive Committee for fiscal year 2022.

The Chairman of the Board, Bernhard Jucker, and the members of the Board of Directors This E. Schneider, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for an additional one-year term of office. Stefaan Haspeslagh was newly elected to the Board of Directors for a one-year term of office.

Furthermore, This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Shareholders also adopted all other motions proposed by the Board of Directors, namely the approval of the annual report, the financial statements and the consolidated financial statements for 2020, and formal approval of the actions of the members of the Board of Directors and those of the Group Executive Committee in the year under review.

Outlook Updated
As already communicated at the Results Press Conference on March 9, 2021, Rieter expects the market recovery to continue in 2021. The company expects an order intake exceeding CHF 500 million in the first half of 2021. For the first half of 2021, Rieter still anticipates that sales will be below break-even point. For the full year 2021, Rieter expects an operating profit.

ISKO introduces ISKO™ Selvedge – a 21st century reinterpretation of one of the most legendary denim fabrics ever made. Inspired by the history and reverence of original Selvedge denim, ISKO has applied its high-performance patented technologies to develop a new Selvedge range. Available in a wide selection of weights, stretch options and finishes, ISKO™ Selvedge adds flexibility, softness and comfort to a fabric more commonly known for its raw and rigid qualities.

The new ISKO™ Selvedge range preserves the authenticity and many of Selvedge’s hallmarks beloved by true denim aficionados the world over, whilst introducing modern attributes such as sustainability, comfort and wearability, which are guaranteed to make it a favorite of a new generation of denim lovers.

The range includes 19 fabric varieties, with weights spanning from 7.75 to 14.5 oz and elasticity options between 13% – 52% for outstanding recovery and holding power. This variegated array relies on R-TWO™ technology. Certified to Textile Exchange environmental credentials, this platform ensures full traceability, minimizing environmental impact and delivering astounding quality to each solution included in the ISKO™ Selvedge family.

The dates are set: IFFT/Interior Lifestyle Living is welcoming exhibitor registration for its 2021 edition, to be held from 18 – 20 October 2021 in the South Halls of Tokyo Big Sight. The dedicated fair for interior design is once again set to attract not only retail buyers but also visitors from design and architecture offices, commercial facilities, and other contract businesses. The 2019 edition welcomed 352 exhibitors from 14 countries and regions as well as 16,016 visitors from 34 countries and regions, receiving much positive feedback for its increased focus on contract business.
 
IFFT/Interior Lifestyle Living 2019
Returning after a hiatus in 2020 due to the COVID-19 pandemic, IFFT/Interior Lifestyle Living will once again create opportunities for exhibitors to meet new clients and expand their businesses. Messe Frankfurt Japan Ltd is working to put all of the appropriate safety and hygiene measures in place to protect participants during the fair period, and prevent the spread of COVID-19.
 
New ETHICAL zone added to satisfy consumer demand
A newly introduced ETHICAL zone will help industry players explore the themes of sustainability and ecology, which are continuing to gain traction in the interior design market. The zone focuses on environmental protection, up-cycling, fair trade, products that support people with disabilities, organic products, local production for local consumption, and more. Furniture production from recycled forest materials will also be a focus of the zone, which will be promoted in the run up to the fair through sector-specific media channels. This will include dedicated promotional activities targeting ethically driven retailers and restaurants.
 
A variety of booth sizes to accommodate exhibitors’ needs
In response to requests from exhibitors who showcase smaller items, a new booth size has been added for 2021. Measuring 6.3 sqm (width 3m x depth 2.1m), the new booth option is one size smaller than the existing 9 sqm booth, adding more choice for exhibitors
 
Dedicated lifestyle themed zones
Proving popular amongst trade buyers during previous editions, ‘CREATIVE RESOURCE’ is a zone devoted to innovative interior materials, as well as parts and services for interior design and home remodelling. Products featured at the zone include wallpaper, floor coverings, paints and related materials. First introduced in 2012, the zone has grown in stature as the destination for the likes of manufacturers, architects, designers and developers to find inspiration.
 
The fair’s zoning encompasses a variety of different product categories and themes. This not only simplifies the sourcing process for trade buyers, but it also maximises business exposure for exhibitors. Day-to-day lifestyle products – both stylish and functional – will be displayed in the ‘HOME’, ‘ACCENT’ and ‘EVERYDAY’ zones with a focus on living spaces, accessories and household items respectively.
 
Moreover, catering to the world of convenience and home cuisine, an array of pragmatically-designed packaged food will be presented at 'FOODIST', while innovative dining items will be gathered at the ‘KITCHEN LIFE’ zone.
 
Highlighting high quality local craftsmanship, designs from Japanese artisanal artists with a modern touch will be located in the ‘JAPAN STYLE’ zone. The latest designs from highly acclaimed international brands will be displayed too, in the ‘MOVEMENT’ area, while work from up-and-coming young designers will appear at the ‘TALENTS’ and ‘NEXT’ zones.
 
About IFFT/Interior Lifestyle Living
IFFT/Interior Lifestyle Living is held annually in fall and is the sister fair of Interior Lifestyle Tokyo held in spring, which is based on Ambiente, Messe Frankfurt’s largest and most important international consumer goods fair, and Heimtextil, the biggest international home and contract textiles fair. With the synergetic effects of these leading global trade fairs in the high-end interior market, and with Messe Frankfurt’s global network, IFFT/Interior Lifestyle Living is a key platform for professionals, buyers, architects and those engaged in domestic and international contract business.

Sateri, one of the world's largest producers of viscose fibre, is planning to expand its Lyocell production in China, with total planned annual capacity of up to 500,000 tonnes by 2025.

The first phase of this expansion kicked off recently with ground breaking works for a new 100,000 tonne facility in Changzhou, Jiangsu province. Another 100,000 tonne facility will be built in Nantong, Jiangsu province later this year. The Changzhou Lyocell facility is expected to commence production in the third quarter of 2022 and will create more than 800 jobs.

Sateri’s first foray into China’s Lyocell market was in May 2020 when its 20,000 tonne Lyocell production line in Rizhao, Shandong province commenced production. The same site houses a 5,000 tonne Lyocell pilot production line dedicated for the development of Lyocell application technology.

Allen Zhang, President of Sateri, said, “Sateri’s continued investment in Lyocell not only responds to the changing needs of the market and the textile industry but also supports China’s green development plans. It is also very much a part of Sateri’s 2030 Vision commitment to sustainable development where we actively seek to adopt a circular economy model through clean and closed-loop production technology and innovation.”

A natural and biodegradable fibre, Sateri’s Lyocell is made from wood pulp sourced from certified and sustainable plantations. It is manufactured using closed-loop technology, requiring minimal chemical input during the production process, and utilising an organic solvent that can be almost fully recovered and recycled.

In anticipation of strong demand for Lyocell in the coming years, Tom Liu, Sateri’s Vice President and General Manager of Lyocell and Nonwovens Business, said: "Customer-centricity is Sateri’s promise. The new expansion plans will enable us to extend our domestic and international market reach and provide our customers with high quality and comprehensive fibre products. At the same time, we will invest in technology improvement, application development, and brand collaboration to bolster the industry”.

JEC Group, dedicated to promoting composite materials, introduces all-new digital event series for the composites community: JEC Composites CONNECT. On June 1-2, 2021, this first round-the-clock event will be one of the industry’s most significant events, hosting major industry players, enabling participants to discover the latest trends thanks to business conferences and get networking opportunities. This live-streamed event will also be the place to highlight innovation through competitions, awards ceremonies and keynote speeches.

JEC Composites CONNECT: a digital event to bring the composites community together
Participants can access the free non-stop digital floor from 8:30 am on June 1 to 6 pm CEST on June 2. This first JEC Composites CONNECT will work as an online trade show, with digital stands for companies showcasing their latest products, from raw materials to composites parts manufacturers with various networking rooms, a meeting requests platform, and with a conference area to access live streaming content.

Composites innovation at the core
JEC Composites CONNECT will host outstanding keynote speakers and all the major JEC Composites competitions and awards promoting innovation, research teamwork, and entrepreneurship in the composites industry.

• The JEC Composites Innovation Awards celebrate the most innovative composites projects and fruitful collaborations between different value chain players in 2021.
• The 2021 JEC Composites Startup Booster competition, with live pitches and winners ceremony.
• The JEC Composites Challenge, where Ph.Ds will present their research projects in front of the jury.

The Awards ceremony will take place on Wednesday, June 2, with an opening keynote speech from inventor and genius entrepreneur Franky Zapata, a.k.a. ‘the Flying Man.’ As the CEO and founder of the company that bears his name, he became well-known for his famed crossing of the English Channel in August 2019 on his Flyboard® Air.

Financial Year 2020

As a consequence of the COVID-19 pandemic, Rieter closed the 2020 financial year with sales of CHF 573.0 million, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million). Due to the low sales volume, a loss of CHF 84.4 million was recorded at the EBIT level while at the net profit level the loss was CHF 89.8 million. In view of the loss in the 2020 financial year, the Board of Directors proposes that shareholders waive the payment of a dividend for 2020.

Order intake of CHF 640.2 million in the 2020 financial year was 31% down on the previous year (2019: CHF 926.1 million). Following the significant slump in demand in the second quarter of 2020 (CHF 45.7 million), order intake recovered in the third quarter (CHF 174.4 million) and improved further in the fourth quarter (CHF 215.1 million).

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

Business Groups
Sales of the Business Group Machines & Systems amounted to CHF 295.8 million in 2020, which corresponds to a decrease of 24% compared to the previous year. Due to the low volume and taking into account the expenditure on the ongoing innovation program, the business group recorded a loss of CHF 72.4 million at the EBIT level. Order intake in the reporting year was CHF 363.9 million (-35% compared to the previous year).

The Business Group Components with sales of CHF 174.3 million (-24% compared to the previous year) achieved a profit of CHF 1.4 million at the EBIT level before restructuring charges. EBIT after restructuring charges was CHF -5.5 million. The order intake with CHF 169.1 million (-24% compared to the previous year) was just below sales.

The Business Group After Sales achieved sales of CHF 102.9 million (-27% compared to the previous year) and a positive EBIT of CHF 1.8 million. Order intake was CHF 107.2 million (-24% compared to the previous year). Over 60% of spinning mills were shut down in the second quarter of 2020, with a corresponding impact on the demand for spare parts.

Dividend
Due to the loss of CHF 89.8 million at the net profit level in the 2020 financial year, the Board of Directors proposes that shareholders waive the distribution of a dividend.

Outlook
Rieter expects the market recovery that began in the second half of 2020 to continue in 2021. The company expects an order intake in the first half of 2021 exceeding that of the previous half year (second half of 2020: CHF 389.5 million). Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nonetheless, as already announced, Rieter still anticipates that sales in the first half of 2021 will be below the break-even point. In connection with the high order backlog at the beginning of 2021, Rieter expects an operating profit for the full year 2021.

2020 financial year: operating profit thanks to profitable second half-year Due to the pandemic-related decline in global vehicle production, Autoneum's revenue in local currencies decreased by –18.7% in 2020. Thanks to a global cost reduction program and improvements from the turnaround program in North America, Autoneum achieved an EBIT margin of 1.6%. Furthermore, the significantly increased free cash flow of CHF 112.5 million enabled a substantial reduction in net debt (excluding lease liabilities) of CHF –63.3 million.

2020 was marked by the coronavirus pandemic and its massive impact on the global economy. Worldwide lockdowns and production stoppages at vehicle manufacturers had drastic consequences for the entire automobile industry and Autoneum in the first half of the year. Although the market recovered in the second half-year, the number of vehicles produced for the year as a whole remained well below the level of the previous year. Thanks to prompt adjustment of the cost structure to the reduced market volume and improvements achieved during the turnaround in North America, Autoneum nevertheless managed to generate an operating profit in 2020 in an extremely difficult and volatile market environment.

Please find more details in attached PDF file.