From the Sector

The viscose speciality fibre manufacturer Kelheim Fibres has joined the ZDHC programme "Roadmap to Zero".

The non-profit organisation with more than 160 contributors worldwide has set itself the goal of completely eliminating harmful substances from the textile value chain. The ZDHC guidelines provide producers of Man-made Cellulosic Fibres (MMCF) with uniform criteria for measuring indicators such as wastewater, air emissions and other process-related parameters. The measured data is independently monitored and published.

Kelheim Fibres sees its ZDHC contributorship as another building block on the road to even more sustainable fibre production:
"We want to develop our industry with our know-how towards a greener future. Sustainability is an integral part of our corporate philosophy and strategy. We fully support ZDHC's vision of a widespread implementation of sustainably chemistry, driving innovations and best practices in textile, apparel and footwear industries to protect consumers workers and the environment," says Craig Barker, CEO at Kelheim Fibres.

"ZDHC provides us with access to a range of best practices in chemical management and gives us the opportunity to network and learn from each other with like-minded industry partners. ZDHC's collaborative approach will accelerate the shift to a more responsible industry and we want to contribute to that."

The machines are quick and reliable, with very little downtime, which is massively important to me as a business owner.”

Kornit Digital (Nasdaq: KRNT), a worldwide market leader in digital textile printing technology, announced United Kingdom-based Kitlocker has implemented two Kornit Avalanche Poly Pro systems for efficient, retail-quality production of branded and customized apparel on demand.

Kitlocker operates within several sectors of the sports and leisurewear market, providing team gear for schools, football clubs, and other sporting organizations, managing e-commerce platforms on behalf of those organizations. Enabling their customers to embellish popular styles on demand, in any quantity, drove them to explore available technologies for speed and versatility, particularly regarding polyester apparel, a cornerstone of sportswear. Kornit’s Poly Pro system is the only single-step digital direct-to-garment (DTG) technology developed specifically for imprinting polyester and poly-blend materials, extending the company’s patented process for waste-free production with durability, precise graphic detail, and the broadest colour gamut to popular sports and athleisure apparel.

“The Kornit Avalanche Poly Pro allows for far superior quality of finish for embellishment compared to traditional print techniques,” says Mike Kent, Co-Owner of Kitlocker. “When we were shopping around for alternatives, it was obvious the sort of single pass, and its ability to print on polyester, was certainly market-leading—there was no alternative that could do that. The machines are quick and reliable, with very little downtime, which is massively important to me as a business owner.”

According to Kent, the technology has enabled Kitlocker to approach new markets that had always been off-limits previously, driving incremental business and building out new product ranges. The process lent itself to simple integration with their workflow and online design tools, empowering customers to visualize their own pieces and receive finished gear, with superior retail quality and precise logo colour matching, in mere days.

“The system allows us bigger print areas, more colours, and more elaborate designs, and our customers to uniquely embellish their garments on a wide range of products from different brands with lots of different kinds of creative outputs,” adds Kent.

“Our systems help brands like Kitlocker sync supply with demand, eliminating waste and making them more reactive to customer needs,” says Chris Govier, KDEU Managing Director. “Kornit Avalanche Poly Pro extends the efficiency, sustainability, quality, and logistical benefits of digitization to the booming sports and athleisure apparel market. Being able to give their customers the widest assortment of gear, customized in any quantity, on demand, is a winning game plan for Kitlocker.”

Paper Converting Machine Company (PCMC) is pleased to announce that Stan Blakney has accepted the position of President of its global operations. In addition to leading the company’s US business, as he has since February 2019, Blakney now will assume leadership of operations in Italy and Serbia as well.

Since Blakney joined PCMC, he has led the company’s expansion in flexographic-printing, bag-converting and hygiene solutions, while also continuing to drive growth in tissue converting and packaging.

The creation of this new role enables PCMC to further unify its operations worldwide and expand into new geographies across all of its markets. It also enhances aftermarket support globally for its customers.

“We’ve seen tremendous growth and opportunity with the introduction of STAX Technologies and Hudson-Sharp to the PCMC family in the last two years,” said Blakney. “As we continue to bring our teams closer together, we are able to build our capacity to provide unified industry-leading service in all regions of the world. This includes enhanced access to parts, aligned Industry 4.0 solutions and around-the-clock care. Our goal is to give our customers a strong global service organization, with the support they need to keep their businesses moving forward.”

• CHIC Shanghai, March 17 to 19, 2021 (due to new regulation to control the infection rate)
• 905 exhibitors are present at CHIC
• Parallel: CHIC ONLINE as a digital platform with upgrade of the CHIC
• APP
• CHIC GARDEN: puts fashion and sustainability in the limelight

The CHIC spring event takes place from March 17th to 19th under strict hygiene guidelines in the National Exhibition & Convention Center in Shanghai parallel to Intertextile Shanghai, Yarn Expo and PH Value.

The Chinese economy has recovered again after the pandemic in China and already reached pre-crisis level with 6.5% growth in the fourth quarter of 2020. McKinsey estimates are a 5 to 10% growth in sales in China in 2021 compared to 2019. Thanks to good sales in China, the fashion luxury brands in particular have been able to improve their sales figures. But also regarding online trade, Chinese ecommerce sales were in first place worldwide for the eighth year in a row. The average per capita income of consumers rose by 3.8% last year.

905 exhibitors and 932 brands will present themselves on site at CHIC. Around 95,000 trade visitors from all retail areas, including all relevant online sales platforms, are expected. The CHIC's online and live streaming events, which run parallel to the trade fairs, have recorded an average of 150,000 clicks on each show since April last year.

CHIC Garden
China is to become climate neutral by 2060, which of course also affects the fashion sector. Overall, the awareness of Chinese consumers has developed even more towards high-quality, sustainable collections. In their "State of Fashion 2021" report, McKinsey & BoF analyze the awareness development in China that consumers and producers are increasingly recognizing the importance of joint efforts by all participants in the value chain to work together in order to achieve sustainability in the fashion industry.

The CHIC flagship event visualizes this topic with the "CHIC Garden" theme. With the help of garden design experts, the fair is transformed into an inspiring garden paradise that reflects closeness to nature and the appreciation of natural resources.

As an exception, the CHIC autumn event, CHIC Shanghai will take place in August this year (25th to 27th August 2021).

• Partner to Enable Sustainable Microbe- and Odor-Resistant Textiles
• Huntsman Now Delivers Complete End-to-End System for Protection Effects

SINGAPORE – Huntsman Textile Effects and Sciessent have entered into a strategic partnership to bring revolutionary antimicrobial and odor-control solutions to textile mills and brands worldwide. As consumers around the world begin paying more attention to health and hygiene, Huntsman Textile Effects and Sciessent will cooperate to help mills and brands deliver active wear, outerwear, home textiles and other products with long-lasting protection against microbial growth and odor. Huntsman Textile Effects will also become the exclusive distribution partner of Sciessent’s Agion® Antimicrobial*, Lava XL® anti-odor solution, and dual-action Active XL®.

“Both Huntsman Textile Effects and Sciessent share a deep commitment to innovation, environmental sustainability and customer service. As partners, our joint goal is to offer the highest level of protection for textiles so that they stay fresher for longer,” said Rohit Aggarwal, President of Huntsman Textile Effects. “Huntsman Textile Effects now has one of the industry’s most complete end-to-end systems for high-performance protection effects, with a full range of innovative and sustainable protection and comfort technologies from pre-treatment to coloration and finishing.”

“Our presence in the global textile and apparel market has been rapidly expanding based on the strength of our solution set and reputation for delivering an exceptional customer experience,” said Sciessent CEO Paul C. Ford. “Through this partnership, we are both extending our reach to manufacturers and enhancing our offerings by coupling them with Huntsman Textile Effects’ broad range of innovative and sustainable protection technologies. It is a great opportunity for manufacturers to differentiate their products through the combined strength of our brands.”

Sciessent is recognized for the proven effectiveness and safety of its antimicrobial and anti-odor technologies throughout the global textile and apparel industry.

Sciessent Agion® Antimicrobial is the industry-leading antimicrobial solution. Designed with smart-release technology, it delivers long-lasting protection by releasing its active antimicrobial agents only when needed. It can be built-in or applied via padding, exhaust or package yarn to any textile alongside other functional finishes, dyes, inks and pre-treatments. Durable up to 100 home washes, Agion® is also customizable to meet brands’ performance and cost goals. Agion® Antimicrobial has been used on FDA-approved medical devices.*

Sciessent Lava XL® is a next-generation non-bioactive odor-control solution, ideal for sportwear and athleisure wear. While other odor-control technologies capture odors and release them during laundering, Lava XL®’s triple action technology utilizes zeolite minerals with a large surface area to capture, absorb and degrade odors as they pass through the fabric.

Sciessent Agion Active XL® combines the advanced dual technologies of Agion® Antimicrobial and Lava XL® to deliver outstanding odor protection. The antimicrobial fights odor-causing bacteria on the garment, while the odor-control solution captures odor generated by sweat on the skin. The result is that garments smell fresher for longer and sustain a high level of performance for more wears.

The Sciessent solutions are easily integrated into the finishing process and can be combined with a range of other finishes, including Huntsman Textile Effects’ durable water repellents and comfort systems to cost-effectively produce high-performance textile products that are safe and sustainable.

Huntsman Textile Effects and Sciessent both champion environmentally responsible products that help the textile industry meet its regulatory obligations and the expectations of the world’s most exacting brands and consumers. The Agion®, Lava XL® and Active XL® products are all bluesign® approved and listed on the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation ZDHC Gateway, complying with ZDHC Level 3 requirements.

*The Agion® Antimicrobial is presently registered by the United States Environmental Protection Agency as a preservative and bacteriostatic agent for use in treated articles under 40 CFR 152.25a. The information presented herein is not intended to support or endorse public health claims for treated articles. The Agion® Antimicrobial is also used in medical devices under the Food and Drug Administration; those medical device claims are based on safety and efficacy testing and are limited to those approved by FDA.

Lectra announces its plan to acquire the entire capital and voting rights of US-based Gerber Technology. A key Industry 4.0 player in the fashion, automotive and furniture industries, Lectra designs smart industrial solutions – software, equipment, data and services – that help brands, manufacturers and retailers develop, produce and market their products.

The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations. After the French work council of Lectra is consulted and the binding documentation is signed, completion of the acquisition shall remain subject to merger control clearance and other customary conditions and shall be submitted to Lectra shareholders for approval.

The proposed combination would occur at an opportune time for both companies and their customers. The current uncertain economic climate and unprecedented challenges that fashion, automotive and furniture companies are facing due to the COVID-19 pandemic make it more important than ever for them to transform, digitalize and optimize their operations.

For over 50 years, Gerber Technology has used its proprietary technologies and deep domain expertise to provide integrated software and automated hardware solutions to companies around the world, including over 100 Fortune 500 companies in 134 countries.

The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions. Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.

Consolidating the two companies’ research and development capabilities will enable the combined company to accelerate development of Industry 4.0 technologies and help its expanded customer base seize the full potential of these innovations.
Integrating the technology of the two companies will endow them with the resources to anticipate and address rapidly changing market conditions.

Key transaction terms

Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of 175 million euros – through a combination of cash and debt – plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder. This would represent a total amount of about 300 million euros based on Lectra’s closing share price on February 5, 2021. No contingent consideration is contemplated.

Gerber Technology’s revenues was 165 million euros in 2020.

Thanks to the strong value creation deriving from significant synergies, Lectra expects the transaction to be accretive for shareholders from 2022.

Upon closing, Daniel Harari would own c. 14.6% of the Lectra shares and AIPCF VI LG would own c. 13.3%.

Lectra’s Board of Directors would welcome a director representing AIPCF VI LG.

Daniel Harari would continue to be the Chairman and Chief Executive Officer of Lectra. Gerber Technology Chief Executive Officer, Mohit Uberoi, would assume special advisor to Daniel Harari role until end-2021.

Lectra’s shareholders would be invited to vote on the issuance of the 5 million new Lectra shares reserved to AIPCF VI LG at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021. A report containing additional information will be made available to the shareholders prior to the Extraordinary Shareholders’ Meeting.

Lazard is acting as exclusive financial advisor to Lectra, and Latham & Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes & Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

2020 results, update on the 2020-2022 strategic roadmap and guidance for the coming years will be disclosed on February 10, 2021.

Lectra management will discuss the transaction, provide forward-looking guidance for the combined company upon closing of the transaction and answer questions from the financial community during the February 11, 2021 webcast Analyst Conference meeting in French starting at 8:30 am (CET - Paris).

Kornit Digital, a worldwide market leader in digital textile printing technology, announced Westerbroek, Groningen-based Reclameland has invested nearly €20 million in a second production hall and state-of-the-art machines, including the Kornit Atlas system for industrial direct-to-garment (DTG) production on demand, in the past year to further accelerate growth. The fastest-growing online printer in the Netherlands, Reclameland achieved a turnover of almost €23 million in 2019 and a profit of more than €1 million.

Now the second-largest business of its type in the Netherlands, Reclameland’s workforce grew by 20% in the past year, enabling them to handle most production operations internally. They attributed increased demand for printed pieces to a strong growth in online buying, for both consumers and businesses.

“2019 marked the definitive breakthrough of online printing, and we have established ourselves as a total print solutions provider for signage, banners, posters, flags, and other digitally printed textiles,” says Wouter Haan, CEO of Reclameland.  "By continuously innovating, we can serve every type of customer. Our investment in Kornit technology has empowered us to imprint more than a thousand garments per day with a single operator, meeting the retail quality, wash and light fastness, and sustainability standards of the world’s largest apparel brands.”

“Reclameland demonstrates the vast opportunities on-demand producers have when they diversify their product offerings and align their operations for a marketplace that increasingly relies on e-commerce,” says Chris Govier, KDEU Managing Director. “Kornit technology offers the perfect foundation for making that business model a success, eliminating slow and costly steps between buyers seeing a brilliantly-designed piece virtually and having it in their hands. We are proud to support Reclameland as they grow to fulfill the promise of digital commerce.”

Reflecting the pandemic-related drop in worldwide vehicle production, Autoneum’s revenue in local currencies fell by –18.7% in 2020, although the second half of the year saw a significant market recovery. Group revenue in Swiss francs fell by –24.2% year-on-year to CHF 1 740.6 million. For the full year 2020, the EBIT margin will be around 1.5% and the free cash flow slightly over CHF 100 million.
At the Annual General Meeting on March 25, 2021, the Board of Directors will propose Liane Hirner and Oliver Streuli for election to the Board of Directors of Autoneum Holding. Peter Spuhler will not stand for re-election.

At 74.5 million, the number of light vehicles produced globally in 2020 was down –16.2% compared to the previous year, where around 89 million vehicles were manufactured. Autoneum’s revenue in local currencies decreased by –18.7% in 2020, pretty much in line with the negative market dynamics. The somewhat stronger decline of revenue compared to the market results from a lower share of Asia in Autoneum's total revenue. Impacted by the appreciation of the Swiss franc against the most important currencies for Autoneum, the consolidated revenue dropped in 2020 by –24.2% to CHF 1 740.6 million. The heterogeneous development of the first and second half of the year was characteristic for the pandemic-driven automotive year 2020. Worldwide lockdowns and production stoppages at vehicle manufacturers led to a market slump in the first six months and a corresponding loss in revenue for Autoneum. Thanks to the subsequent market recovery and catch-up effects in the second half of the year, revenue improved considerably compared to the first half of the year.

Revenue development in Asia and SAMEA region significantly better than market
While revenues in local currencies of the highest-volume Business Groups Europe and North America decreased by –25.6% and –19.3% respectively, reflecting the regional, pandemic-driven market development (Europe: –22.9%; North America: –20.1%), Business Group Asia almost held its prior-year level with an organic decline of only –2.1% in 2020 thanks to the strong upturn in automobile production in China in the second half of the year and despite the fact that the number of vehicles produced in Asia fell by –11.4%.*

Personnel changes to the Board of Directors
At the Annual General Meeting on March 25, 2021, the Board of Directors of Autoneum Holding will propose Liane Hirner and Oliver Streuli for election as new members of the Board of Directors.
Liane Hirner has been CFO and member of the Management Board of Vienna Insurance Group, based in Vienna, Austria, since 2018.*

Oliver Streuli, a Swiss national, has been CEO of PCS Holding, based in Frauenfeld (Canton Thurgau), Switzerland, since 2019.*

Peter Spuhler has been a member of the Board of Directors of Autoneum since 2011 and will not stand for re-election at the Annual General Meeting on March 25, 2021.*

*See attached document for further informationen

• The Bavarian Kelheim Fibres GmbH has become the first viscose fibre manufacturer worldwide to receive EMAS certification.

“Our aspiration is that our fibres offer an eco-friendly and high-performance alternative to synthetic materials”, says Craig Barker, CEO at Kelheim Fibres. “So, it’s not enough that our fibres are made from renewable resources and that they are fully biodegradable – our environmental awareness must include the whole production process and all that goes with it if we want to safeguard our credibility.

The EMAS certification proves that we take this responsibility seriously.” EMAS stands for “Eco Management and Audit Scheme” and is a standardised eco management certification system developed by the European Union. EMAS includes the globally applicable ISO 14001 standard and goes beyond its requirements by demanding more transparency and continuous improvement: Certified companies report in their annual EMAS Environmental Statement on their environmental goals and their progress in meeting them.

During the audit preceding the certification, the independent environmental auditor thoroughly investigated all departments of the company, from the production itself to the company canteen. He found no non-conformances and was impressed by the competence and the high sense of responsibility among Kelheim’s employees. In contrast to the EU Ecolabel and similar certifications, EMAS does not apply to individual products or services, but certifies the complete environmental performance of the company. This benefits not only the protection of the environment and climate, but also the improvement of a company’s ecoefficiency.

Craig Barker: “An efficient environmental management system ensures that economy and ecology go hand in hand – that gives us a decisive competitive edge.”

• The nonwoven and technical textiles industry has become the focus of the whole world during the pandemic process.
• Most countries carried out works for these sectors with their investments, production and innovations.

During the pandemic process, a new one is added every day to the works for the nonwoven and technical textiles sector, whose importance is increasing in line with the needs. Turkey has become a center of  technical textiles by showing that its accumulation in these field and power.

In the Turkish technical textiles sector, which has an export market of 107 billion dollars worldwide and continues to break its own export record every month, R&D and innovation investments continue without slowing down. Technical textile exports, which increased by 77 percent in last November compared to the same month of the previous year, increased by 55 percent in January - November period and reached 2.5 billion dollars. Thus, technical and smart textiles and production technologies both attracted more attention and gained more importance in line with the needs of the pandemic process.

HIGHTEX 2021 International Technical Textiles and Nonwoven Fair, which will be held at Tüyap Fair and Congress Center on 22-26 June 2021, will be the exhibition where the latest technologies and products for nonwoven, technical and smart textiles which have become more important during the pandemic period and have become the focus of the whole world. Especially the products and technologies produced for the pandemic will attract more attention at the exhibition. HIGHTEX 2021 Exhibition, which will gather its exhibitors and visitors under one roof, will also allow new collaborations. At the same time, the exhibition, where developing technologies and products are exhibited, will provide a great advantage in terms of the formation of new business ideas.
HIGHTEX 2021, the first and only exhibition in Turkey in its field are expected to sign a new record in terms of number of exhibitors and visitors. You can visit www.hightexfairs.com website for more information about HIGHTEX 2021, which is preparing to attract more attention and host people than ever before.