From the Sector

• Historically difficult market environment – trade tensions put textile value chain under pressure in 2019
• Prices for standard viscose at a historic low
• Positive development of the specialty fiber business with a revenue share of already 51.6 percent
• Strategic investment projects are progressing according to plan
• sCore TEN targets for 2024 defined – EBITDA of EUR 800 mn

Despite a generally difficult demand environment for textile fibers and a drastic drop in prices for standard viscose, the Lenzing Group recorded a solid business development in 2019. The disciplined implementation of the sCore TEN corporate strategy and the accompanying focus on specialty fibers once again helped to mitigate the effect of unprecedentedly low standard viscose prices.
As a result, revenue dropped by 3.3 percent from EUR 2.18 bn to EUR 2.11 bn in 2019, driven by lower selling prices as well as standard fiber volumes. Due to positive mix effects and more resilient specialty fiber prices, the share of specialty fibers increased from 45.5 percent to 51.6 percent of revenue.
The earnings development was largely influenced by the decline in revenue, but also by negative currency effects on material and personnel costs. EBITDA (earnings before interest, tax, depreciation and amortization) fell by 14.4 percent from EUR 382 mn to EUR 326.9 mn. The EBITDA margin declined from 17.6 percent to 15.5 percent. Net profit, at EUR 114.9 mn, was 22.4 percent lower than in the previous year at EUR 148.2 mn. Earnings per share amounted to EUR 4.63 (2018: EUR 5.61).

• Technology for dyeing polyester and its blends

TERASIL® BLUE W high wash fastness dye raises operational excellence of mills, providing right-first-time results leading to savings of water, energy and costs.

Huntsman Textile Effects introduces TERASIL® BLUE W, the latest addition to the TERASIL® W/WW range of wash fast disperse dyes. TERASIL® Blue W is designed to meet all major requirements for high performance sportswear and athleisure wear.

Polyester fiber has become the fiber of choice in the textile industry, the demand for polyester and man-made fibers is expected to rise over the long term, as sports and athleisure apparel markets expand around the world. At the same time, leading brands, retailers and mills are increasingly focused on achieving brilliant and deep shades, consistent shade reproducibility, as well as water, energy and cost savings.

TERASIL® BLUE W is developed by Huntsman Textile Effects to provide the leading solution for meeting industry’s wash fastness requirements. TERASIL® BLUE W offers an attractive shade and high build-up for deep blues which stays vibrant. TERASIL® BLUE W also provides quality assurance as products are bluesign® approved and suitable for STANDARD 100 by OEKO-TEX® certified textile products.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today in response to the Congressional-Executive Commission on China’s staff report on the forced labor of Uyghurs and other minorities in China to produce consumer products for global companies.

We share the concerns of the bipartisan China commission regarding forced labor in China that is used to produce goods for global companies. We agree with the findings and the commission’s recommendations to the administration and Congress to take action against the systemic abuse of forced labor.

As the commission’s report details, Chinese apparel exporters have clearly profited from the virtual enslavement of this minority population, and we call for continued scrutiny and the end to this exploitation of a repressed people. The commission has served a fair warning to U.S. businesses and consumers to not be complicit in these forced labor practices.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

• U.S. employment in the textile supply chain was 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available

Hexcel’s Leading Position in Aerospace and Automotive Makes Hexcel a Trusted Partner for Urban Air Mobility

At this year’s JEC World in Paris on March 3-5, Hexcel will highlight the growing need for innovations in composite materials to support the emerging Urban Air Mobility (UAM) market.

Urban air mobility – urban transportation systems that move people by air or enable cargo deliveries – is the next big transportation innovation. Similar to taxis or ride sharing today, UAM will help remove congestion from our streets and provide a convenient, rapid method for travel in urban centers as well as in remote areas.

Advanced composite materials will be at the heart of UAM vehicles by providing lightweight, efficient, reliable, and cost-competitive options for manufacturing. “Materials have been a key driver of efficiency for aircraft today, and they will be even more important for the emerging UAM marketplace,” said Imad Atallah, Director of Strategic Marketing for Aerospace and Urban Air Mobility at Hexcel.

Already, Hexcel is a leader in advanced composite materials for the aerospace market and is a key supplier of composite materials to the automotive industry. So, the company is well positioned to offer solutions to meet the critical needs of high-rate and quick-part manufacturing cycles, in addition to low-cost needs for this space. Hexcel’s materials solutions approach for UAM is to make it greener and more sustainable, safer, more comfortable, and more affordable.

Hexcel’s broad range of carbon fiber and HexPly® prepreg solutions, including snap cure thermosets and thermoplastics, coupled with the most qualified positions on aerospace programs in the industry make the company a trusted partner for UAM. In addition to offering composite materials from carbon fibers, prepregs, honeycomb and reinforcements, Hexcel’s best-performing market solution in noise absorption on aircraft jet engines, Acousti-Cap®, provides a strong position of innovation to solve one of the most critical problems in the UAM space – community noise. “We are applying our technologies to the unique needs of urban air mobility vehicles,” Atallah said.

Hexcel’s ability to bring materials technology from the aerospace and automotive industries represents a unique strength in solving the critical challenges of UAM, especially around high-rate manufacturing, low-cost materials, light weighting, and noise. “Both thermoplastics and quick-cure thermoset materials are expected to have applications on UAM vehicles,” Atallah said. Furthermore, Hexcel’s broad product portfolio including unsized carbon fiber has proven to be the most compatible with thermoplastic resins from a consolidation perspective.

At ISPO, AKA – Asahi Kasei Advance keeps the planet fit and healthy at the same time. The cutting edge department of global material innovator Asahi Kasei, unveils ECOSENSOR™, the cutting-edge fabric collection boosting responsible innovation with a “New Eco High-tech Force of Nature” new generation of performance.

Harnessing AKA expertise in yarning a smarter future, the new range focuses on sportwear, urban and athleisure fabrics. “At ISPO we launch the energetic protein fitting perfectly in textiles for clothes with an active imprint, comfort touch and smooth style. From-yarn-to-dyeing and along the whole supply chain, the collection is 100% traceable.” Says Nishizawa Akira, President & Representative Director Asahi Kasei Advance corporation.

Such goals were scored thanks to the renown expertise of Research & Development and energized by constantly and strictly controlled processes that aim to save energy, water and Green House gases emissions. The result is a high-performative collection combining maximum comfort with durability and stretch-ability.

With ECOSENSOR™, Asahi Kasei Advance truly innovates at ISPO as the very first producers choosing the high-performance path with sustainable values. “Like a truly complete athlete, ECOSENSOR™ wins both during the sprint and all along its performance. It’s outstanding light & stretch features match durability.”

Indeed, the flexible and multitasking range is the high-tech solution for sportwear, outerwear and beyond. The collection embraces the casual and sporty mood of active urban surfers as well as that easy-to-wear attitude for a relaxing free-time at home.

Excellent stretch and high-performative features match the adventurous temperament of extreme explorers, while durability and resistance are the key features to weave fabrics for outdoor activities. The target of ECOSENSOR™ by Asahi Kasei is to push at maximum the choice towards bluesign® approved and Standard 100 by OEKO-TEX® certified ingredients and production processes, and GRS (Global Recycled Standard) for recycled ingredients, showing the path to sustainability.

Working with the best like-minded apparel partners, AKA has achieved unsurpassed active climate control materials. The unique high-tech and low-impact functionality has been designed to make a real, sustainable difference a better future.

Monforts customer Rajby Textiles is the first company in the world to have finally achieved the Cradle to Cradle (C2C) Platinum Standard for a product. Its Beluga denim fabrics have gained the ultimate sustainability score in all five categories covered by the C2C standard, which is acknowledged as involving the toughest and most thorough testing and assessment it is possible to put a product through.

As such, Beluga denim fabric is based on 100% GOTS certified organic cotton and employs no hazardous chemicals in its production. At the same time, it is both recyclable and biodegradable, with 100% of the energy used in its production offset by green energy and involving a closed loop system with no waste water generated and no material wastage.

The new Beluga denim fabrics, however, represent a new zenith in circular denim production. To meet the active cycling requirement, Rajby has committed to using Beluga denim fabric exclusively in apparel products sold by retailers with take back programmes in place and estimated expected cycling rates for such products

Focus on Sustainability and Climate Change

Passion for Cotton: The 35th International Cotton Conference Bremen starts on 25 March in the Hanseatic city’s historic Town Hall. But before subject-specific questions are discussed in depth in the individual sessions, the concise and inspiring keynotes by leading business experts from science and industry will draw attention to the current trends and challenges in the industry at the start of the conference. A large part of the presentations is shaped by the current discussion on environmental and sustainability issues and the resulting consequences for the global economy.

Climate Change and Sustainability

“Climate change - a storm in a teacup?” asks Kai Hughes, Executive Director of the International Cotton Advisory Committee, Washington D.C., USA, in a provocative speech. The aim of his presentation is to work out the challenges of climate change especially for agriculture and cotton production. This should form the basis for later discussion on concrete approaches and solutions within the cotton community.

With his lecture “The HUGO BOSS sustainability programme ... and what our customer has to do with it” Andreas Streubig, Director of Global Sustainability at Hugo Boss AG, Metzingen, Germany, rolls up the textile value chain from a different angle, starting at the consumer level. As a representative of a premium brand for women's and men's clothing, Streubig discusses sustainability as a strategic element of the corporate strategy and provides information on how elements of the strategy are being implemented at Hugo Boss.

Rüdiger Senft, Head of Sustainability at Commerzbank, Frankfurt am Main, Germany, looks at the changing role of banks in financing the cotton market. In addition to a general introduction to the topic of sustainability and banking regulation, Senft's presentation deals with the financing of the cotton trade from a social and ecological point of view.
The opening session on 25 March is hosted by Bill Ballenden, founder and owner of Dragontree, Swindon, UK, an online auction platform for the cotton trade. As a former cotton manager for Louis Dreyfus in Europe and Asia, Bill Ballenden has many years of experience in the industry.

Cross-Cutting Issues: Digitalisation, Gender, Value Chains

The subsequent session in the conference programme with the headline “A Wider View” is devoted to currently defining trends and important cross-cutting issues in the industry. This goes far beyond classic cotton themes.

A lecture by Mark Messura, Senior Vice President, Global Supply Chain Marketing for Cotton Incorporated, Cary, North Carolina, deals with the role of cotton in an increasingly digitally controlled supply chain. Significant keywords here are faster delivery times, vertical integration, transparency and traceability.

The presentation by Roger Gilmartin, Managing Director of Tri-Blend Consulting, Charlotte, USA, entitled “The secret recipe for timely, cost-optimised and high-quality cotton clothing” promises exciting and enlightening insights. Tri-Blend Consulting conducts studies on the performance of different cotton varieties during the entire consumption process to the finished yarn and evaluates them from an economic point of view.

Amy Jackson, from the Better Cotton Initiative, London, UK, presents ICA Liverpool's “Women in Cotton” initiative. With this commitment, the initiative aims to increase the influence of women in the cotton industry and give them a stronger voice, for example by building networks in cooperation.

Navdeep Singh Sodhi, International Strategic Management Consultant at the Gherzi Textile Organisation, Switzerland, gives an insight into the current development of the value chain for cotton, textiles and clothing in Africa. Looking ahead to the coming decades, also in view of population growth, Africa is seen as having a high potential for building economic structures to improve income and prosperity.

Thomas Schneider, Professor at the University of Applied Sciences in Berlin and active in the field of production planning and control, textile materials and materials testing will host the session. A leading light in his field, Thomas Schneider has more than 30 years of experience in scientific and application-oriented research in the textile and fibre sector, including at the Fibre Institute Bremen e.V.

Hexcel is collaborating with NaCa Systems, a Tier 1 supplier of natural fiber composite automotive interior parts, on the development of a lightweight carbon fiber prepreg and wood fiber composite sportscar seat back using a rapid press molding process. This innovation validates a short cycle time production process for CFRP and wood fiber composite parts and offers a host of benefits to automotive manufacturers.

Hexcel supplies NaCa Systems with an optimized version of its HexPly® M77CS epoxy prepreg material. HexPly® M77CS is a fast curing hotmelt, thermosetting epoxy matrix, specifically designed for prepreg applications for which short cure cycles and clear surfaces with perfect aesthetics are required.

The lightweight seat back demonstrates a 40% weight saving compared to a typical injection molded plastic component whilst also featuring a significantly improved CO2 footprint vs a full carbon part. The prepreg and wood fiber structure doesn’t produce sharp edged pieces when damaged. In addition, wood fiber composites also increase sound absorption, contributing to improved NVH damping within the vehicle interior.

The NaCa Systems seat back will be on display on the Hexcel stand at JEC World 2020.

Within the framework of the preparations for the Group annual financial statements and based on preliminary results, SGL Carbon confirms its guidance for 2019 as revised in October 2019. Accordingly, the Company continues to expect Group sales between €1.05 and €1.1 billion and Group EBIT before extraordinary items between €45 and 50 million. In addition, net financial debt as of December 31, 2019 has also developed as expected, increasing by a mid double digit million € amount and thus remaining below the €300 million mark.

SGL Carbon also confirms the initial outlook for 2020 as presented in October 2019. Group sales is anticipated slightly below the 2019 level and Group EBIT before extraordinary items 10-15% below the 2019 level. To reflect the lower earnings expectations and within the context of a conservative free cash flow management, the Company will restrict capital expenditures to €70-80 million in 2020 (previous guidance: approximately €100 million) and thus approximately on the level of depreciation.

As usual, SGL Carbon will communicate further details on the guidance for 2020, particularly relating to the guidance on the level of the reporting segments, with the publication of the annual report 2019 on March 12, 2020.

The Company will also publish statements on the new mid-term plan on this date.

The Trevira CS joint booth at Heimtextil 2020 was once again a success.

Trevira looks back on a successful trade fair appearance at Heimtexil 2020. The concept of a joint booth together with customers along with the presentation of product innovations and a special exhibition dedicated to the contract sector has once again proved its worth. Trevira hosted 31 co-exhibitors thus increasing the number of participants again compared to last year. Members of the entire textile value chain were present at the Trevira stand: from the fibre production and yarn manufacture, to the colouring, weaving and warp and weft knitting stages, to the textile editor.

Klaus Holz, CEO Trevira GmbH: „We are pleased about the very positive feedback we got on our joint booth at Heimtextil 2020 from our customers and the visitors to our stand. It shows that our concept is successful and that the booth works well as a market place for Trevira CS.”

Product novelties were presented in an Innovation Park. Under the headline “Recycling at Trevira” the fibre producer presented its sustainable product range and diversified approaches to recycling: flame retardant fibres are produced from residual materials, which are reprocessed in an agglomeration plant. The recyclates are then deployed in the spinning facility to make new, high-quality products consisting of 100 % pre-consumer recycled material. Recycled, flame retardant filaments are produced from PET bottles and have a recycled content of 50 %. Standard polyester spun-dyed filament yarns are also available in a recycled version. Produced from PET bottles these yarns have a recycled content of 100 %.

In order to produce flame retardant fabrics which are also high-performing  in outdoor applications, Trevira now offers six more colours in addition to the existing colour range of 24 UV-stable, spun-dyed filament yarns. Trevira had been awarded the „Brandenburger Innovationspreis Kunststoffe und Chemie 2019“ for this innovation.

Cationic dyeable fibres and filament yarns enhance the Trevira portfolio of flame retardant specialties. They are used to create melange designs in fabrics, which still represents a strong trend in the home textile sector.

To meet the ever more complex demands of the market for more flexibility in design and additional functions as well as for sustainable products Trevira has introduced an enhanced Trevira CS branding concept, consisting of the three brands Trevira CS, Trevira CS flex und Trevira CS eco. Assigned according to product features, all of them stand for tested safety.