From the Sector

The European Alliance for SMC BMC and the AVK expert task force SMC/BMC are announcing they will organize together SMCCreate 2022, a conference about design in SMC and BMC composite materials. This conference will provide valuable insights in the entire product design process from idea to part manufacturing, targeted both at experienced designers and at designers that are new in applying these versatile materials.

SMC and BMC are composite materials ideal for making light and intricate parts that combine structural performance with a smooth surface finish. For that reason, SMC and BMC are increasingly used in a broad range of end-use applications and markets.

Companies that have been using SMC and BMC solutions have a lot of expertise available, which can help designers to be more successful in bringing products to market. Therefore, the European Alliance for SMC BMC and the AVK expert task force SMC/BMC would like to organize together this design conference, allowing designers to learn from the experts, apply gained insights into their own designs, and broaden their horizon for new part developments.

Using SMC BMC in your part design
Within the time of only 1.5 day, the SMCCreate 2022 conference will cover a wide range of subjects, all relevant for designers in their selection of materials solutions that provide performance, cost efficiency, manufacturing ability and sustainability. In particular:

• How can SMC BMC help you to design great parts, bringing a combination of unique shapes and functional performance?
• How can SMC BMC help you to improve sustainability?
• What are the key steps in the design process, starting from initial idea to full production series manufacturing?
• What are the typical design challenges and solutions?
• How to best design for optimal manufacturing?
• Which are the tools available for designing in SMC BMC: design software, material data, tooling considerations?
• Practical examples of designs and components made in SMC BMC
• What’s new in the world of SMC BMC?

Date and Location
The SMCCreate 2022 Conference will be organized on April 6-7, 2022 in Antwerp (Belgium).

DOMOTEX will not take place in January 2022. This was announced by Deutsche Messe AG as organizer of the leading trade show for carpets and floor coverings.

"We have been fighting for DOMOTEX together with the exhibiting companies until the very end, and have been in daily communication with the industry for months," says Sonia Wedell-Castellano, Global Director DOMOTEX, Deutsche Messe AG.

"DOMOTEX is particularly affected by the impact of the Corona pandemic, as the vast majority of DOMOTEX exhibitors and attendees come from abroad. However, given the current pandemic situation, international business travel is not expected to recover in the short term," adds Wedell-Castellano.

Just over a month ago, the organizers wanted to stage DOMOTEX in the southern part of the Hannover exhibition grounds in a compact format as a Re-Start event in three halls, thus giving the industry a chance to meet physically after almost two years of pandemic.

Wedell-Castellano: "What was considered a realistic and promising Re-Start scenario a month ago, and was also well received by the market, has proven to be no longer feasible in recent days."

The organizers are looking into a DOMOTEX date later in the 2022 calendar year. 

The acoustic performance of components for the vehicle interior such as inner dashes or carpets depends on the noise-reducing quality as well as the geometrical adaptability and fill power of their material. With Flexi-Loft, Autoneum offers a new felt-based technology that thanks to a unique blend of recycled cotton and functional fibers reduces product weight and allows for accurate adaptation even to complex shapes. The textile material therefore provides a versatile and more sustainable alternative to foam.

In order to achieve high acoustic performance at minimum weight and maximum sustainability, Autoneum is continuously advancing its textile product portfolio. When it comes to components for the vehicle interior, for example, standard thermoplastic felts excel through their acoustic absorption, robustness and environmental friendliness. However, since felt-based materials are generally less voluminous and moldable as foam components, they require more weight to thoroughly fill the areas of varying thickness between the surface of the component and the vehicle’s body-in-white. In contrast, Autoneum’s Flexi-Loft technology is significantly lighter, more flexible and more adaptable than standard felts. In addition, the fiber-based material is versatile and clearly outperforms current foam products in terms of sustainability.

Thanks to its blend of recycled cotton and polyester fibers, Flexi-Loft substantially reduces component weight while improving geometrical adaptability and acoustic performance, especially in areas of low thickness. Thanks to the specific properties of the fibers, Flexi-Loft enables a precise adaptation to a wide variety of vehicle bodies, thereby improving the noise-insulating qualities of the respective product. Even at low weight, Flexi-Loft covers a wide range of material thicknesses, thus proving to be an ideal decoupling material for interior components with complex shapes such as inner dashes and automotive carpets. As a lightweight, flexible and sustainable alternative to both standard felts and foam, Flexi-Loft distinguishes itself by its versatile application in combination with existing Autoneum technologies such as Hybrid-Acoustics and Prime-Light. Moreover, the material helps to reduce odor and dust inside the vehicle.

Flexi-Loft consists of at least 50% recycled cotton fibers, and cut-offs generated during the manufacturing process are reclaimed, processed and then reused in the production of new felt blanks.

Autoneum is already using Flexi-Loft worldwide as an insulator for various carpets, inner dashes and other acoustic components based on its Prime-Light technology. The application of the material as an effective decoupler in inner dashes made of Hybrid-Acoustics will be launched on the European market in 2023.

In 2021, Berto Industria Tessile embarked on a series of journeys through the denim supply chain, touching both B2B and B2C worlds.

The first journey of this adventure, aimed at discovering and publicizing the world of indigo and, began by talking about the collaboration with the turkish garment maker blue matters creating a green collection to be proposed to the world's top brands, continuing with “su mirura project” in the second chapter.
This project has its objective in supports, with a ready on stock fabrics, (which at this time of difficult availability of product becomes extremely relevant), young emerging talents in the world of fashion that, in our industry, both for problems related to  minimum order quantities and for problems related to financial commitments of startups, would having difficulty in the raw materials research.

In this third chapter of the personal voyage into the world of denim, Berto Industria Tessile talks about two realities that are not only made in Italy, but also made in veneto, for a zero km circularity supports.

Two brands that are part of two different segments of the indigo world of b2c, one operating in the world of clothing and one in the creation of fashion accessories, but who have a common denominator between them, the use of 100% in their collections of denim fabric Berto.*

* See attached document for more information.

• COMPOSITES SUSTAINABILITY REPORT 2021  

JEC Group in collaboration with EuCIA has published the first edition of the Composites Sustainability report 2021. This report seeks to give highlights about the part composite materials are playing in creating the sustainable European economy of the future.   

The contents of the book are comprehensive: starting with discussions around the widely recognised Life  Cycle  Assessment  methodology  for  calculating  the  environmental  impact  of  products,  it then 
moves through a series of analyses and case studies presenting the Circular Economy approach and ranging from raw materials (including bio-based) to industrial components.    

The purpose of the work, rather than results, which quickly become obsolete, is to give examples of approaches contributing to and moving towards sustainability. To do so, JEC Group has arbitrarily split
the value chain into five parts:
• Background, LCA, circular economy ;  
• Concept, design, raw materials ;  
• Production, processes, waste ;  
• Recycling, recovery ;
• Applications. 
 
The book “Composites sustainability Report 2021” is for sale online.

Indorama Ventures Public Company Limited (IVL) reported a strong 3Q 2021 performance amid record production volumes. The company maintained its positive outlook for the rest of the year and 2022, noting caution as headwinds including higher energy prices and supply chain disruptions weigh against resurgent consumer demand.

IVL reported EBITDA of US$478 million in Q3 versus US$552 million in the previous quarter and US$240 million a year earlier. Production volumes reached 3.73 million metric tons, a record, as the global recovery drove consumer demand for IVL’s products.

As the global economy recovers from the pandemic, consumer appetite and increasing Brent crude oil prices are testing supply chains and driving a commodity boom, with manufacturers running at full capacity. This has driven increases in freight prices and a shortage of materials.

Still, IVL posted a solid YTD performance, ending the first nine months of 2021 with EBITDA of US$ 1,512 million, up 123% YoY. The Integrated Oxides & Derivatives (IOD) segment will start to reap the full benefits of the hot commissioning of the Lake Charles gas cracker (IVOL) in Q4 and beyond, as well as continued advantaged shale gas economics.

In Q3, Project Olympus, the company’s cost saving and business transformation project, achieved US$63 million in efficiency gains, and is on track to achieve a total US$610 million of savings by 2023. IVL also implemented enhanced disclosures in governance, strategy, risk management, and metrics and targets, and launched a comprehensive financial policy and governance structure to accelerate environmentally driven projects.

IVL strengthened its Indorama Management Council (IMC) – the company’s highest operational management committee – by rotating experienced executives and adding the COOs of the Fibers and Integrated Oxides & Derivatives (IOD) segments. The appointments will help build the segments into self-sustaining organizations while also rotating expertise across the IMC.

3Q 2021 Performance Summary

• Consolidated Revenue of US$ 3,867M, an increase of 9% QoQ and 50% YoY
• EBITDA of US$ 478M in Q3 versus US$552 million, a decrease of 13% QoQ and an increase of 99% YoY
• Reported annualized EPS of THB 4.53 and core annualized EPS of THB 4.09

Indorama Ventures Public Company Limited issued a THB 10 billion triple-tranche Sustainability-Linked Bond, showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The bond is part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability Linked Loan Principles.

The SLB is linked to IVL’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.

On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.

Under the terms, all tranches must purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets in the event of failure to meet the sustainability performance targets (SPT). The testing dates for tenors with a maturity of 5 and 7 years are 31 December 2025, and 31 December 2030 for the 10.5-year tenor. SPT performance will be independently verified upon the testing dates.Proceeds for the issuance will be used to finance IVL’s corporate working capital and refinance existing debt.

In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.

After its launch on 20 September 2020, the RCI is proud to celebrate its first anniversary this fall. The balance sheet of the first year is impressive: starting from 11 founding members, that number increased to 30 member companies within 12 months. Numerous webinars, press releases, background information, a glossary and a comic allowed to convey the “Renewable Carbon” concept to the public. The RCI is actively working on labelling and policy analysis, and more activities will follow in the next year.

Key for this success: the topic of renewable carbon in chemicals and materials is increasingly becoming a focus of politics and industry. Larger companies will have to report their GHG emissions and also the footprint of their products as part of legislative changes surrounding the European Green Deal. In this context, indirect emissions and the carbon sources of materials will play a much more crucial role. The RCI is actively working on solutions for companies to shift from fossil to renewable carbon, which consists of the use of bio-based feedstock, CO2-based resources and recycling. In the future, reporting on GHG emissions will also include Scope 3 emissions, which are all indirect emissions that occur along the company’s value and supply chain and where the used raw materials account for a large proportion of the footprint. Here is where the carbon source of chemicals and plastics comes into play as an important contributor to the carbon footprint. Without a shift from fossil to renewable carbon feedstocks (combining bio-based, CO2-based and recycled), a sustainable future and the Paris climate targets will be almost impossible to master.

To discuss, promote and realise the shift, 30 innovative companies have already joined forces to support the transition to renewable carbon, considering both technological and economical approaches – and helping to shape the political framework accordingly.

For the second year, RCI plans to focus on a comprehensive understanding of the expected political framework conditions in Europe and across the globe, since they will determine the future of chemistry and materials more than ever. Building on this knowledge, the topic of renewable carbon could then to be systematically integrated into new political directives, which has so far not been effectively managed.

In reality, the political focus lies on the strategy of decarbonising the energy sector, a very central and Herculean task. However, it cannot be applied to the chemical and material world because carbon is usually the central building block that cannot be dispensed with. On the contrary, the demand for carbon in the chemical and materials sectors is expected to more than double by 2050. In order to meet this demand in a sustainable manner, we must move towards quitting fossil carbon. For the first time in industrial history, it is possible to decouple chemistry and materials from petrochemicals and completely cover the demand through the utilisation of biomass, CO2 and recycling.

RadiciGroup is exhibiting at the A+A trade fair, an international event focusing on safety solutions for the workplace, to be held in Dusseldorf, Germany, from 26 to 29 October. This international show gives RadiciGroup the opportunity to present its latest developments in personal protective equipment (PPE) for industrial use, including coveralls, gowns, caps, full hoods, shoe covers and boots.

This international show gives RadiciGroup the opportunity to present its latest developments in  personal protective equipment (PPE) for industrial use, including coveralls, gowns, caps, full hoods, shoe covers and boots. These products are part of a new line, Radipeople, a trade name identifying the new protective workwear sold by RadiciGroup: end products of a traceable supply chain, in which special attention is paid to the choice of raw materials and the quality of the final products offered the market.

At RadiciGroup, care for the health and safety of people is one of the pillars of the Group's sustainability strategy, combined with a strong commitment to safeguarding the environment. Radipeople Eco, the first protective coverall with 100% end-of-life recyclability is proof of such commitment. All parts of Radipeople Eco: the fabric, lamination, zipper and thread are made of the same material, 100% polypropylene. Furthermore, the Group’s offering includes garments made with Respunsible®, a spundbond obtained from recycled polypropylene or materials certified under the ISCC Plus scheme.

Thanks to their versatility and technical characteristics, the nonwoven solutions proposed by RadiciGroup are suitable for many industrial sectors, including oil and gas, utilities, construction, food, automotive painting and shipbuilding, maintenance, agriculture, laboratories, microprocessor manufacturing and the pharmaceutical and chemical industries.

Radipeople personal protective equipment delivers excellent protection against external agents (liquids, splashes, jets, particles and sprays), high protection against biological hazards and infectious agents, and high robustness and lightness to optimize protection, on the one hand, and comfort, on the other. All Radipeople protective equipment is made of fully traceable materials, manufactured by a totally Italian production chain involving hundreds of workers, and sold in packaging designed with an ecodesign approach, that is, fully recyclable minimized packaging.

• Order intake of CHF 698.6 million in third quarter 2021
• Order intake of CHF 1 673.9 million after nine months
• Acquisition of the three Saurer businesses on schedule
• Credit lines renewed early
• Outlook 2021

The positive market dynamics, which Rieter has already reported on several occasions, continued in the third quarter of the current year. Rieter recorded an order intake of CHF 698.6 million in the third quarter of 2021 (2020: CHF 174.4 million).

The order intake of CHF 1 673.9 million after nine months corresponds to an increase of 294% compared to the prior year period (2020: CHF 425.1 million).
 
The market development is broadly supported at the global level and is based on a catch-up effect from 2019 and 2020 in combination with a regional shift in demand. Rieter believes that a major reason for this regional shift in demand is the development of costs in China. This is leading to increased investments outside the Chinese market. The orders came primarily from Turkey, Latin America, India, Pakistan and China. Overall, Rieter is benefitting from its innovative product range and the global positioning of the company.

The Business Group Machines & Systems achieved an order intake totaling CHF 1 281.6 million in the first nine months of 2021 (+447%).*

In the first nine months of 2021, the Business Group Components recorded an increase of 95% to CHF 227.0 million, while the Business Group After Sales posted an order intake of CHF 165.3 million, an increase of 123% compared to the prior year period.*

Acquisition of the three Saurer businesses on schedule
The acquisition of the three businesses from Saurer, which Rieter announced on August 16, 2021, is proceeding according to plan. The incoming orders for these businesses are not taken into account in this trading update.
 
Credit lines renewed early
The Rieter Group arranged the early renewal of the existing committed credit lines (five-year term, totaling CHF 250 million).
 
Outlook 2021*
The first nine months of 2021 were characterized by a rapid market recovery combined with a regional shift in demand. Rieter expects the demand for new systems to gradually return to normal in the coming months.  
 
For the full year 2021, Rieter anticipates sales of around CHF 900 million.

* See attached document for more information.