From the Sector

Solid net profit and further strengthening of the balance sheet thanks to significant revenue and profitability increases

The automobile industry recovered significantly in the first half of 2021 compared to the prior-year period, which had been impacted by the effects of the coronavirus pandemic. Autoneum benefited from the market dynamics and managed to increase its revenue in local currencies by 24.3% in the first semester. EBIT rose to CHF 44.7 million thanks to higher revenues and further progress in the turnaround in North America, corresponding to an EBIT margin of 5.0%. The strong free cash flow of CHF 67.2 million has allowed for a further reduction in net debt.

In the first half of 2021, 29.2% more light vehicles were produced worldwide than in the coronavirus-hit first half of 2020. The market recovery, though significant, was hampered by the global semiconductor shortage, which led to temporary production stoppages and manufacturers producing lower vehicle volumes. Autoneum increased revenue in local currencies by 24.3% in the first six months. In Swiss francs, revenue climbed by 21.9% to CHF 890.3 million. Business Group SAMEA (South America, Middle East and Africa) grew clearly above market, while the shortage of semiconductors in North America in particular impacted the production of models supplied by Autoneum and the revenue development of Business Group North America.

Autoneum managed to improve its operating result (EBIT) considerably by CHF 76.5 million in the first six months compared to the prior-year period. In addition to higher revenues, this was mainly due to the immediate and sustainable adjustment of the cost structure in all Business Groups to the new market reality in 2020 as well as the improved earnings achieved in the turnaround program in North America. Higher material costs, however, had a negative impact on the operating result. EBIT in the amount of CHF 44.7 million (prior-year period: CHF –31.8 million) corresponds to an EBIT margin of 5.0% (prior-year period: –4.4%).

The development of global light vehicle production in the second half of 2021 remains uncertain due to the semiconductor shortage. Although there is a high demand from end customers in all regions, it can be assumed that the shortage of chips will continue to impact automobile production in the second half of the year, but not as severely as in the second quarter of the first half-year.

Revenue in the second half-year 2021 is expected to be higher than in the first semester. Based on the unfavorable allocation of semiconductors to vehicle models supplied by Autoneum in the first half of 2021, revenue development is likely to be slightly below market for the full year 2021. With an easing of the semiconductor shortage, this will normalize.

The 11^th edition of RISE®, Research, Innovation & Science for Engineered Fabrics Conference will be presented virtually on Sept. 28-30 with more than 150 professionals in product development, materials science, and new technologies.

The conference will culminate on Sept. 30 with the presentation of the 2021 RISE® Innovation Award recognizing problem-solving innovations that advance the nonwovens industry.

The program includes presentations from industry leaders, round-table discussions and question-and-answer sessions on the key themes of material science developments for sustainable nonwovens, sustainability, increasing circularity in nonwovens, and promising innovations in nonwovens, processes and materials:

• Promising Materials Development Using PLA
  presented by Behnam Pourdeyhimi, Ph.D., William A. Klopman Distinguished Professor and Executive Director, North Carolina State University, The Nonwovens Institute
• Phantom Platform: The Polyolefin-cellulose Coformed Substrates Technology at Its Best, featuring insights from Fabio Zampollo, CEO, Teknoweb Materials S.r.l.
• Biotransformation Technology in Polyolefin Fibers and Nonwoven Fabrics, Focus on Fugitive Used Articles
  with speakers, DeeAnn Nelson, Ph.D., Development Program Manager, and Nick Carter, Vice-President of Marketing and Business Intelligence, both from Avgol Nonwovens
• High-Loft, Ultra-Soft Hygiene Solutions,
  presented by Paul Rollin, Ph.D., Global Team Lead – Nonwovens, ExxonMobil Chemical Company
• Innovating a Sustainable Future for Nonwovens; A European Perspective
  given by Matthew Tipper, Ph.D., Operations Director, Nonwovens Innovation & Research Institute Ltd., (NIRI), UK
• Filtration Media Functionalized with Zinc Oxide
  by Wai-shing Yung, Ph.D., Technical Director, Ascend Performance Materials

Dibella's long-standing forwarding partner Hamacher was taken over by the sustainably committed logistics specialist Heppner at the end of 2018. The new constellation takes Dibella another step further in terms of climate-neutral transport: the logistics company, which originates from France, focuses on the environmentally friendly transport of goods and is investing heavily in a carbon dioxide-neutral vehicle fleet.

"With our first sustainability report, we introduced the monitoring of our carbon dioxide emissions. It turned out that the transport of our textiles produces the most climate gases. We have therefore consistently switched to sea freight and almost without exception do not ship goods by air. However, we still see a need for optimisation from the port of Rotterdam to the customer or to our warehouse. After the takeover of our long-standing forwarding partner Hamacher by the logistics specialist Heppner, there is now a breath of fresh air in our climate-friendly delivery initiative. The company is committed to environmentally friendly transports and a low-emission vehicle fleet. Together we now want to look for solutions to make the "last miles" of our deliveries climate gas neutral," says Ralf Hellmann, Managing Director of Dibella.

Departure into a clean future
Spedition Heppner, with its origins in Alsace, is a family-owned company with worldwide operations and 3,320 employees handling more than 72 million freight items annually. More than a decade ago, the logistics specialist began recording the carbon dioxide emissions released by its fleet of vehicles and steadily reducing them by switching to environmentally friendly energy sources. With a mix of gas, bio-fuel and electric drive, the discharge of greenhouse gases caused by the company's trucks is to be reduced by twenty percent by the year 2025. By 2050, the entire fleet should be diesel-free. To achieve a carbon dioxide-neutral footprint, Heppner is also testing hybrid forms of transport (rail, inland waterways, truck) as well as alternative delivery options (cargo bike).

TCV, Teijin’s carbon fiber business base in Vietnam, was established in May 2019. Teijin Limited announced that Teijin Carbon Vietnam Co., Ltd. (TCV) in Ha Nam, Vietnam, has started operating commercially to manufacture carbon fiber products including prepreg, a fiber sheet pre-impregnated with matrix resin as an intermediate material for composites. TCV initially will produce carbon fiber materials for sports and outdoor activities, including fishing, golf, bicycle and ice hockey goods, for markets in Southeast and South Asia and Asia-Pacific. Sales will be handled by TCV as well as carbon　fiber sales affiliates of Teijin operating in these markets.

Teijin’s sales affiliates in Singapore, Shanghai and Taipei work to identify demand opportunities as well as provide customer services in Asia. Internal collaborations between these companies and TCV shall strengthen Teijin’s presence in the upstream and downstream sectors of Asia’s fast-growing markets.

Increasingly strict environmental measures and the upgrading of environmental frameworks, such as sustainable development goals (SDGs) and the Paris Agreement, are expected to stimulate greater use of lightweight and highly rigid carbon fiber. Demands are growing in Asia, especially in the fields of sports and outdoor activities, industry and aerospace. COVID-19, for example, has led to new trends in sports and　outdoor activities, such as renewed interest in fishing due its compatibility with social-distancing protocols.

Circular fashion and textile technology group Infinited Fiber Company has secured investments totaling 30 million euros in its latest financing round completed on June 30. The round also brought Infinited Fiber Company new investors, including sportswear company adidas, Invest FWD A/S, which is BESTSELLER’s investment arm for sustainable fashion, and investment company Security Trading Oy. Among the existing investors contributing to this round of financing were fashion retailer H&M Group, who was the lead investor, investment company Nidoco AB, and Sateri, the world’s largest viscose producer and a member of the RGE group of companies.

This securement of new funding follows Infinited Fiber Company’s April announcement of plans to build a flagship factory in Finland in response to the strong growth in demand from global fashion and textile brands for its regenerated textile fiber Infinna™. The factory, which will use household textile waste as raw material, is expected to be operational in 2024 and to have an annual production capacity of 30,000 metric tons. The new funding enables Infinited Fiber Company to carry out the work needed to prepare for the flagship factory investment and to increase production at its pilot facilities in the years leading to 2024.

“We are really happy to welcome our new investors and grateful for the continued support from our older investors,” said Infinited Fiber Company co-founder and CEO Petri Alava. “These new investments enable us to proceed at full speed with the pre-engineering, environmental permits, and the recruitment of the skilled professionals needed to take our flagship project forward. We can now also boost production at our pilot facilities so that we can better serve our existing customers and grow our customer-base in preparation for both our flagship factory and for the future licensees of our technology.”

H&M Group is one of Infinited Fiber Company’s earliest investors. They first invested in Infinited Fiber Company in 2019.

H&M Group has also signed a multiyear sales deal with Infinited Fiber Company to secure its access to agreed amounts of Infinna from the planned flagship factory.

New investor BESTSELLER has struck a similar sales deal with Infinited Fiber Company.

In addition to strong interest by global fashion leaders, the technology has significant promise for major textile fiber producers. Allen Zhang, President of Sateri, said: “Sateri is excited to continue to invest in and collaborate with Infinited Fiber Company as part of our long-term commitment towards closed-loop, circular and climate-positive cellulosic fibers. This financing round marks a major milestone for our collaboration in scaling up next-generation fiber solutions.”

Infinited Fiber Company’s flagship plant preparations are also proceeding on other fronts. Several Nordic and international investment banks have given Infinited Fiber Company proposals on the financing options for the investment.

Infinited Fiber Company’s technology turns cellulose-based raw materials, like cotton-rich textile waste, into Infinna, a unique, premium-quality regenerated textile fiber with the natural, soft look and feel of cotton. Infinna is biodegradable and contains no microplastics, and at the end of their life, garments made with it can be recycled in the same process together with other textile waste.

Marabu is one of the first ink manufacturers to achieve climate neutrality. All Marabu Business Units will, where possible, make a specific contribution to achieve the 17 United Nations Sustainable Development Goals (SDGs) with PROJECT GREEN and therefore participate in the Green Deal.

"We are safeguarding the future of the next generations and are proud that we have managed to be a climate neutral company from July 2021 with the Tamm and Bietigheim sites. All our products, whether printing inks or creative colours, are climate neutral, too," explains York Boeder, CEO Executive Committee. "Our so-called PROJECT GREEN combines all measures that are taking us on our journey to climate neutrality. Climate protection is a particular concern for us, to which we have made a binding commitment within the scope of an extensive sustainability strategy. In accordance with our Marabu Green Deal, we avoid and reduce emissions wherever possible, e. g. by using green electricity, energy-saving schemes, mobility concepts or environmentally friendly materials. We offset all unavoidable CO2 emissions by supporting internationally certified climate protection projects. We are continually implementing measures to improve our carbon footprint and update them annually to make their success measurable. We have therefore set ourselves the active goal of reducing our CO2 emissions by another 25 % by 2030."

For decades, Marabu has invested in the research and development of safe production processes, environmentally friendly products, and clean technologies with the aim of preserving the natural environment. Marabu has worked with Climate Partner to analyse all the CO2 emissions from the sites in Tamm and Bietigheim and determine its carbon footprint. Including all product-related factors such as raw materials and logistics, Marabu currently generates approx. 18,500 tons of unavoidable CO2 emissions. This value is the positive result of a number of climate-friendly measures pursued by Marabu, such as the early switch to green electricity in 2007.

Marabu's main activities to avoid and reduce CO2 emissions:

• Energy - Switching to green electricity from hydropower
• Mobility - Migration of the company's vehicles to electric and hybrid cars as well as in e-charging stations
• Production - Use of renewable energies and resource-efficient production processes
• Raw materials - Replacing critical substances with environmentally friendly alternatives for new and existing products
• Transporting - Climate-neutral freight carriers and lower-emission transport methods like shipping or road transport replace air freight wherever possible
• Product technology - Modern, low-emission products

For the fourth time, the international start-up competition "Plan B - Biobased.Business.Bavaria." organised by BioCampus Straubing honoured the best new business ideas in the field of biobased solutions.

Dr Crnoja-Cosic, Director New Business Development, and Matthew North, Commercial Director, represented Kelheim Fibres at the award ceremony. The manufacturer of special viscose fibres has been working with the BioCampus Straubing for many years and is a supporter of the competition, this year as prize sponsors. In this capacity, Dr. Crnoja-Cosic congratulated the newly founded team of Microbify GmbH on their third place and presented them with a cheque for 3,000 Euros. As a spin-off from the University of Regensburg, Microbify works, among other things, on the use of old natural gas storage facilities for the production of green natural gas using extremophilic microorganisms.

Driving the change from a fossil-based to a bio-based economy is a declared goal of Kelheim Fibres - their speciality fibres replacing fossil materials in more and more applications. To this end, the fibre manufacturer seeks inspiration and exchange within its own industry as well as with innovation partners from outside the industry, start-ups and science in an open innovation approach.

• A coalition of 13 European business associations, representing different European sectors calls for the swift ratification of the EU-Mercosur association agreement.
• With the political agreement reached already 2 years ago (June 2019), now is the time to move forward and unlock the manifold mutual benefits that this agreement will deliver.

The EU-MERCOSUR agreement is the largest and most ambitious trade agreement ever negotiated by both sides, provides regulatory certainty for both trade in goods and services, and establishes better trade links between countries of respectively 440 and 260 million citizens. It also includes the most advanced sustainable development provisions that will foster partnership, help mitigate climate change and bind both sides to effectively implement the Paris Agreement. Moreover, it includes enforceable commitments on workers' rights and environmental protection through a dedicated dispute settlement mechanism.

Failure to ratify the agreement would leave the EU and Mercosur with fewer instruments to build mutual trust and cooperate to face the biggest challenge of our time. Moreover, non-ratification will lead to Mercosur countries continuing to trade, or even expanding their trade, with other trading partners that have substantially lower environmental and labour standards. Please find attached the full joint statement.

• Experienced leader will work with customers to develop controls obsolescence strategies

Paper Converting Machine Company (PCMC)—a division of Barry-Wehmiller and a leading supplier of high-performance converting machinery for the tissue, nonwovens, package-printing and bagconverting industries worldwide—is pleased to announce that Steven Charapata has accepted the position of Aftermarket Sales Executive, specializing in controls obsolescence upgrades.

In his new role, Charapata will work with customers to develop a controls obsolescence strategy by identifying and prioritizing equipment, developing a plan, and proposing solutions that can provide a phased approach to manage risk, downtime and capital expenditures. Charapata has more than 20 years of experience updating obsolete controls systems on PCMC machines and other converting equipment. He joins PCMC from Zepnick Solutions Inc., where he was a controls obsolescence Project Leader.

“Steve’s expertise and extensive controls experience will be assets for our customers,” said Joe Schuh, Aftermarket Sales Director. “Complete controls upgrades can be overwhelming. Steve will work with our customers to create a comprehensive, effective and well thought-out plan that will minimize their risks and downtime. He brings a unique understanding of controls systems, hardware and software design, and capital equipment. We’re thrilled to have him join our team.”

• World of Wipes® International Conference Expected to Draw More than 400 Attendees July 12-15 in Atlanta

As business activity emerges with renewed enthusiasm post-pandemic, more than 400 attendees are expected to attend the World of Wipes® International Conference July 12-15 at the Atlanta Marriott Marquis with over 50 tabletop exhibits at the two evening receptions.

In a sign of the industry’s strong desire to return to business in-person, INDA is anticipating a full show for a dynamic interactive experience with wipes industry professionals at WOW 2021. With less than a month to go, over 350 wipes professionals have already registered and registration remains open.

“We are pleased to open our doors for WOW 2021 and have our wipes professionals gather once again for face-to-face business, educational program content and social interactions,” said Dave Rousse, INDA President. “INDA is looking forward to welcoming industry friends to re-engage and bringing attendees together to forge new relationships.”

The three-day conference will deliver the latest insights and material science developments in key areas for business growth in this vital market with themes focused on sustainability issues, the impact of COVID-19 on consumer wipes, regulatory trends, flushability and more.

WOW 2021 Highlights

July 12 – The learning gets started with the separate one-and-a-half-day WIPES Academy led by Chris Plotz, INDA Director of Education and Technical Affairs, providing critical training on research, development and manufacturing of wipes. WOW 2021 will officially kick off with an evening welcome reception in the Marriott’s Imperial Foyer.

July 13 – WOW attendees are greeted by INDA’s President, Dave Rousse. The compelling conference program gets underway with the following sessions:

• Wipes and the Growing Plastics Debate
• Government Affairs Update 
• The Confusing World of Regulations Impacting the Disinfecting and Sanitizing Wipes
• Presentations by the three finalists for the World of Wipes Innovation Award® – Kimberly-Clark Scott Sanitizing Wipes, Lenzing™ Lyocell Skin fibers and Shark

July 14 – Industry-leading experts will present on thought-provoking topics related to wipes trends, innovations, sustainable packaging and the impact of COVID-19 during this packed second day. Among the not-to-be-missed sessions are:

• Trends in the Wipes Market and Among Consumers
• Innovation in Wet Wipe Preservatives
• COVID-19 Impact on Wipes Consumption and Cleaning Habits
• Sustainable Packaging and Dispensing for Wipes 

July 15 – Sustainability will be a headliner for this third day as well as the presentation of INDA’s prestigious award for innovation.

• Nonwoven Substrates for More Sustainable Wipes
• Flushable Wipes: Loved by Consumers, Wrongly Accused by Utilities

In addition to the strong conference content, at least 50 companies will exhibit their products and services during two evenings of one-and-a-half-hour tabletop exhibitions with networking receptions.

WOW 2021 will conclude with the exciting announcement of the World of Wipes Innovation Award® by Dave Rousse.

In addition to the live component, a conference recording will be available on demand two weeks after the event. INDA maintains its commitment to adhering to all CDC protocols and guidelines for a safe event. For the full event details, visit the WOW website.