From the Sector

Rieter’s cumulative sales in the first nine months of 2023 amounted to CHF 1 092.9 million (2022: CHF 987.4 million), an increase of 11% compared to the prior-year period. In particular, supply bottlenecks eased slightly, which allowed more machines to be delivered than in the same period last year. Sales in the third quarter of 2023
were CHF 334.7 million (Q3 2022: CHF 366.8 million).

The Business Group Machines & Systems generated total sales of CHF 749.6 million in the first nine months of 2023 (+18%). The Business Group Components posted sales of CHF 206.8 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded growth of 13% to CHF 136.5 million in the first nine months of 2023.

Order intake in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts continued to weaken due to the slowdown in spinning mill capacity utilization. Rising interest rates and high energy and raw material prices also had a dampening effect.

In this market environment, the Rieter Group received orders totaling CHF 452.2 million in the first nine months of 2023 (2022: CHF 1 095.8 million). In the third quarter of 2023, orders decreased by 44% year-on-year to CHF 127.2 million (2022: CHF 226.4 million).

Rieter expects the market to have bottomed out in the year 2023 and anticipates a gradual market recovery in the course of the 2024 financial year.

As of September 30, 2023, Rieter has an order backlog of around CHF 900 million (September 30, 2022: CHF 2 000 million). The current order backlog will allow good capacity utilization at the production facilities into the coming year. The cancellation rate in the reporting period was within the usual range, averaging around 5% of the order backlog, with a slight downward trend.

In July 2023, the Group launched the “Next Level” performance program aimed at strengthening sales excellence, sharpening customer focus, improving cost efficiency in production and optimizing fixed cost structures. By taking these measures, Rieter intends to create the basis for providing an even more agile response to the cyclical nature of the machinery business. The objective of the planned initiatives is to ensure the profitable and sustainable development of the group.

The performance program includes provisions for the net reduction of approximately 300 positions in overhead functions across the group, primarily in Germany and Switzerland. The consultation processes initiated with the employee representatives in Ingolstadt (Germany) and Winterthur (Switzerland) were completed in the third quarter of 2023. The majority of these workforce reductions are expected to be implemented by the end of December 2023.

Due to the current market situation, further market- and volume-related adjustments in the range of 400 to 600 positions will be necessary, mainly in production. However, the actual number of positions to be reduced depends on the order intake in the coming months.

Rieter continues to expect that the strategic and operational measures initiated will result in one-off restructuring costs of around CHF 45 to 50 million, which will impact earnings in the 2023 financial year.

Outlook for the full year 2023 confirmed
As announced on July 20, 2023, in view of the economic situation and the ongoing cyclical market weakness, Rieter continues to expect below-average demand for new equipment in the coming months. A revival is not anticipated until the end of 2023 at the earliest. Likewise, Rieter believes that demand for consumables, wear & tear and spare parts will not recover until towards the end of 2023.

For the full year 2023, Rieter expects an EBIT margin of around 5 to 7% (including positive special effects of less than 2%) and sales at the previous year’s level of around CHF 1.5 billion.

As a leading company in the collecting, sorting, reselling and recycling of post-consumer textile waste, TEXAID has enabled the recycling of post-consumer textile waste into new textiles and clothing. Working together with brands and retailers, TEXAID and our partners are continuing to take action to shift from a linear to a circular system.

Since 2022, TEXAID has partnered with Triumph International, operating their in-store collection program, “Together We Grow”, for 160 stores across Austria, Denmark, France, Germany, the Netherlands and Switzerland. Given the success of the program, starting April 2023, in-store take back has been expanded to an additional 108 stores across Belgium, Czech Republic, Hungary, Luxembourg, Poland, Portugal, Sweden and Spain. Customers bring in their worn garments and TEXAID manages the collected clothing in alignment with the EU waste hierarchy, sending each item to its next most sustainable lifecycle. TEXAID is pleased to be partnering with Triumph International to offer in-store take back, at scale, across Europe. For every 5 kg collected, Triumph plants a tree in partnership with Treedom.

To move away from the linear system and enable products to be made out of post-consumer textile waste, TEXAID continues to expand its offering for in-store collection programs throughout Europe and the USA.

More than 4 400 organisations, companies and individuals submitted comments and information on the proposal to restrict per- and polyfluoroalkyl substances (PFAS) in the European Economic Area.

At the end of the consultation on 25 September, ECHA had received more than 5 600 comments from more than 4 400 organisations, companies and individuals.

The comments will be checked by ECHA's scientific committees for Risk Assessment (RAC) and Socio-Economic Analysis (SEAC), and those providing relevant evidence-based information will be considered in the opinion making process.

The five countries who prepared the initial proposal will also review the consultation input and may update their initial proposal based on it.

Many comments submitted during the consultation are already published on ECHA’s website. Information indicated as confidential by the consultee is not made public. Comments received very close to the deadline are currently being processed and will be published shortly.

Next steps
RAC and SEAC are evaluating the proposed restriction and considering the relevant information received through the consultation. The committees develop their independent, scientific opinions over a series of meetings, where draft opinions are discussed. Attention is given to all aspects and impacted sectors.

ECHA will deliver the final opinions to the European Commission in the shortest possible timeframe, while ensuring proper scrutiny by the scientific committees. Once the committees adopt their opinions, they will be communicated to the public.

The Commission, together with the EU Member States, will decide on the restriction.

Background
The restriction proposal was prepared by authorities in Denmark, Germany, the Netherlands, Norway and Sweden. It was submitted to ECHA on 13 January 2023. It aims to reduce PFAS emissions into the environment and make products and processes safer for people. The six-month consultation ran from 22 March to 25 September 2023.

Further information
•    Consultation comments
•    Restriction on the manufacture, placing on the market and use of PFAS
•    Topical page on PFAS
•    REACH restriction process

Technological progress often results from close collaboration, and industries that rely on continual improvement stand to benefit from the return to in-person business. Cinte Techtextil China’s first edition since eased pandemic measures is set to reflect a 27.9% increase in exhibitor numbers, with a rejuvenated international contingent further supplemented by the return of the European Zone. Taking place from 19 – 21 September across 40,000 sqm at the Shanghai New International Expo Centre, the platform is expected to welcome buyers from across Asia, Europe, and beyond. Pre-registrations have doubled compared to the previous edition, and international buyers account for over 20% of the total.

The new zone, Marine Textile Zone, will be comprised of multiple Chinese green marine and nautical rope netting exhibitors, while also hosting the Technology Exchange Forum, and the awards ceremony of the Top 10 Suppliers in the China Rope Net Industry. Prominent exhibitors in this zone include Ropenet Group, Hunan Xinhai, and Zhejiang Four Brothers Rope.

Other domestic exhibitors, such as Shanghai Shenda Kebao New Materials, SIJIA New Material (Shanghai), Zhejiang Hailide New Material, and Zhejiang Jinda New Materials, will showcase products for applications in outdoor advertising, tents, boats, vehicles, environmental engineering, and much more.

Supplementing the fairground’s wide variety of domestic suppliers will be a much-increased showing of international exhibitors, with many to be found within hall E1’s European Zone. Several global industry leaders are featured in their categories below:

Nonwovens equipment

• Autefa Solutions, Germany: solutions provider for nonwovens lines and machines for carded-crosslapped needlepunching lines, spunlace lines and thermobonding lines.
• Dilo, Germany: in addition to offering general services, Dilo supplies opening and blending equipment, carding and airlay machines, and crosslapping and needling machines.
• Groz-Beckert, Germany: provider of industrial machine needles, precision parts and fine tools, as well as systems and services for the production and joining of textile fabrics.
• Reifenhäuser Reicofil, Germany: provider of innovative technologies and components for plastics extrusion, producing blown films, cast films, sheets as well as nonwovens.

Weaving equipment

• Itema, Italy: provider of advanced weaving machines, spare parts, and integrated services, specifically for rapier, air jet and projectile weft insertion technologies.
• Lindauer DORNIER, Germany: the company manufactures weaving machines, film stretching lines, and composite systems, also offering technical support and spare parts supply.
• Picanol, Belgium: producer and servicer of high-tech air jet and rapier weaving machines, with around 2,600 weaving mills utilising their systems worldwide.

Coating and lamination

• BRÜCKNER Textile Technologies, Germany: manufacturer of machines and lines for the coating and finishing of apparel fabric, technical textiles, nonwovens, glass fabrics and floor coverings.
• ROWA Lack, Germany: developer of high-quality materials and product solutions for the polymer industry, with applications including automotive, electrical engineering, construction, technical textiles, and medical technology.
• Stahl, the Netherlands: the Dutch company provides high quality coatings, dyes and process chemicals for leather, flexible coated substrates, textiles, films and foils, paper, and related products.

Fibre

• Monosuisse, Switzerland: with production sites in Switzerland, Poland, Romania, Mexico, and Germany, Monosuisse manufactures various precise, high-quality polymer monofilaments from 19µm to 3.00 mm in diameter.
• Perlon, Germany: specialised in the manufacture of synthetic filaments in diverse application areas, including paper machine clothing, dental care, and advanced technical textiles for agriculture, 3D printing, sports and leisure, home, and more.

Meanwhile, first-time exhibitors include Rökona (Germany), showcasing RE:SPACE, their range of recycled technical textiles; Testex AG (Switzerland), the official OEKO-TEX® representative in multiple countries including China; Hohenstein (Germany), the renowned testing laboratory and research institute; and zwissTEX (Germany), the knitted fabrics and lamination specialists. In addition, the returning Taiwan Pavilion is set to feature the debut of Shinih Enterprise Co Ltd (Taiwan China).

Beyond the innovation displayed at the booths, the fair’s programme is set to welcome global experts from various technical textile and nonwoven sub-sectors to offer specific insights and unveil innovations. Highlighted events include:

The 11th China International Nonwovens Conference
14 sessions cover topics such as the quality control of medical supplies; green development in technology and applications in the nonwovens industry; and the development and application of flashspun nonwovens in China.

Marine textiles and rope netting events
Events specific to this zone include the Top 10 Suppliers in the China Rope Net Industry; Conference on Textile Applications for Marine Engineering and Fisheries; and the China Nonwovens & Industrial Textiles Association (CNITA) Rope Net Branch Council Meeting

"Nonwovens, Creating a Better Life” Innovation Showcase
Product display area showcasing around 100 nonwovens products with applications in five areas: medical and health, quality of life, human habitat, sustainable development, and innovative design.

Advanced Technical Textiles Industry Chain Synergistic Innovation Development Forum
Includes presentations from multiple key players in the technical textile industry, including Mr Steven Liu, Commercial Manager of Polymer Additives Business of Sanitized (China) Ltd.

SGL Carbon and Brembo agreed to expand production capacities for the joint venture Brembo SGL Carbon Ceramic Brakes (BSCCB). Both companies have been working together with BSCCB on the conditions and implementation plans for this in the preceding months. BSCCB will invest around €150 million until 2027 to expand by more than 70% production capacities at the sites in Meitingen (Germany) and Stezzano (Italy).

The capacity enlargement includes the construction of two new production facilities at the SGL Carbon Meitingen site with a total area of around 8,500 m² and the installation of new production machinery. The groundbreaking in Meitingen will take place this fall.

At the Stezzano site, production areas will be extended by around 4.000 m² to existing buildings and investments will be made in new production machinery.

The extensive expansion of production capacities will enable Brembo SGL Carbon Ceramic Brakes (BSCCB) to meet the high market demand and to cover the increasing customer requests in the future. The need for carbon ceramic brake discs from BSCCB increased worldwide. This is mainly due to the high product quality and performance of carbon ceramic brake discs, which meet the specific requirements of automotive manufacturers, especially in the premium and luxury segments, where high braking performance is needed.

Source Home & Gift came to a successful conclusion after four days of innovation, networking, and collaboration. The global showcase provided a hub for manufacturers, designers, buyers, and distributors to engage in meaningful conversations, explore emerging trends, establish invaluable business connections, and foster global trade relationships.

From the 3rd - 6th September, the second edition of Source Home & Gift which has tripled in size since its inaugural show in February, brought together brands and retailers including Oh Deer, Sainsburys, Dunelm, Haskins Garden Centre, Indico, Blue Diamond, Funky Pigeon, M&M, Matalan, Disney, Morrisons, M&S, Next, Costcutter, AIS, Alzheimers Society, Amazon, B&Q, Card Factory, Ridleys Games, and more.

Hundreds of accredited manufacturers, producers, and artisans from 14 countries including Bangladesh, China, Germany, Ghana, Hong Kong, India, Nepal, Pakistan, Palestine, Philippines, Sri Lanka, Uganda, UK, Uzbekistan, and the first dedicated Egyptian Pavilion organised by Egypt Expo & Convention Authority (EECA) told their stories and showcased their products and manufacturing capabilities across product categories including homewares, furniture, gifts, stationery and greetings, toys, textiles, household and pet supplies, and packaging.

The next show takes place on the 4th – 7th February 2024.

Albany International Corp. has completed its acquisition of Heimbach Group (Heimbach). Headquartered in Düren, Germany, Heimbach is a global supplier of paper machine clothing for the production of all grades of paper and cardboard on all machine types as well as high-tech textile products used in a variety of sectors, such as the food processing, chemicals, construction materials and automotive industries.

Daniel Halftermeyer, President of Machine Clothing, said, “We are excited about the opportunities to create additional value for our shareholders and customers through the increased scale, complementary technologies and broader geographic footprint this transaction provides. Together we will effectively combine the strengths of each company to set a new standard in customer value delivery as the industry’s partner-of-choice.”

Albany acquired Heimbach for €132 million in cash, and assumed net debt of approximately €22 million. The transaction was funded with cash held in Europe.

The Global Organic Textile Standard (GOTS) officially started the Organisation for Economic Co-operation and Development (OECD) Alignment Assessment process for GOTS' version 7.0. This involvement illustrates GOTS' ongoing efforts to align with the international framework for responsible garment and footwear supply chain due diligence.

An Assessment for Greater Impact
The OECD Alignment Assessment is a three-stage process that includes a Standards Assessment, an Implementation Assessment as well as a Credibility Assessment. As GOTS enters the Standard Assessment phase, it effectively showcases its dedication to sustainable practices, in line with the OECD Due Diligence Guidance. This process, supported by the German Federal Ministry for Economic Cooperation and Development, began in July 2023 and is expected to complete in January 2024.

The Role of the Due Diligence Criteria
The GOTS Due Diligence Criteria provide a framework for companies to proactively address potential or existing risks to human rights and the environment. This initiative lies at the core of GOTS' role as a trendsetter, paving the way for responsible business practices that will shape the future. Ruslan Alyamkin, Responsible for Standard Development and Implementation (Social Responsibility) at GOTS, emphasised the transformative power of these criteria: "The Due Diligence Criteria are not just guidelines, they are a powerful tool for real change. They empower companies to make informed and ethical decisions, helping to shape a textile industry that respects human rights and cares for our planet".

Emerging Regulatory Requirements: Navigating Human Rights and Environmental Due Diligence Obligations
As global legislation increasingly emphasises respect for human rights in business operations, GOTS remains a support tool for companies navigating this evolving landscape. Legislation such as Germany's Supply Chain Act (LkSG), France's Vigilance Act, Norway's Transparency Act, the Dutch Child Labour Due Diligence Act, and the UK Modern Slavery Act underscores the crucial need for rigorous due diligence in assessing business impacts on human rights and the environment. Moreover, the European Commission adopted a proposal for a Directive on corporate sustainability due diligence (CSDDD), which signals the imminent consideration of mandatory human rights and environmental due diligence.

With the recent version of GOTS Version 7.0, textile companies gain access to a six-step due diligence process, enabling them to identify, assess, and mitigate adverse impacts throughout their supply chains. This positions GOTS as a tool in showcasing compliance with due diligence obligations outlined in the draft EU CSDDD as well as in national laws.

Freudenberg Performance Materials (Freudenberg), a global supplier of high-performance technical textiles has begun operating a new 3D entangled mat production line in Changzhou (China). It enables Freudenberg to supply customers in the APAC region with Enka®Solutions made in China for building, industrial and civil engineering applications. Freudenberg now is also able to serve customers in diverse technical markets with finished and semi-finished products.

This investment in China will significantly increase Enka®Solutions production capacity and will play a fundamental role in the development of Enka business with customers in the APAC region. Freudenberg inaugurated the new line in Changzhou at an opening ceremony on July 13th.

The new production line in Changzhou complements the manufacturing operations in Obernburg (Germany) and Asheville (North Carolina, USA). With a global manufacturing presence on the three different continents Europe, Asia and America, Freudenberg can now serve markets locally and deliver Enka®Solutions products faster and efficiently. This will not only help to better meet customer needs, but also reducing the company's environmental footprint by increasing local production.

The PREMIUM and SEEK teams around Anita Tillmann and Jörg Arntz prove their skills with the success of the new Trend and Event Platform. The format, newly shortened to just two days, showed a total of 450 curated, international brands of the new generation, with 250 brands at PREMIUM and 200 brands at SEEK. The motto was quality over quantity. In addition to the brands, the focus was clearly on the know-how of experts from sustainability, tech, and business. If you didn't discover or learn anything new in the last two days you missed out. Visitors from all over the world came to Station Berlin to see what the Premium Group had come up with for this edition - and it did not disappoint.

PREMIUM reinvents itself
The newly curated brand portfolio with many international and unexposed brands were very well received by the community and invited buyers and visitors to explore a diverse, exciting, and coherent brand landscape. The atmosphere was characterised by lightness, lots of sunshine, and good conversations.

For the first time, PREMIUM and the Fashion Council Germany joined forces to present the showroom "CURATED by Fashion Council Germany" with avant-garde designers from Germany and Ukraine. The tech format Yonnaverse addressed the most important innovations for profitability and sustainable growth through digital progress. The event took place physically, digitally, and in the Metaverse.

Iranian artist and milliner Maryam Keyhani showed what surrealism marketing and tangible art can look like with her oversized hat, which floated happily over the grounds and caused surprised faces. The installation by the Italian designer Innerrraum from Berlin was dedicated to Anita Tillmann in gratitude for her international success. Artists such as Sophie Douala from France, Claudia Gillies from New Zealand, and Grycja Erde from Ukraine were a welcome addition in making the PREMIUM visit an experience.

The diverse portfolio also included a range of beauty brands and the beauty lounge offered much-loved make-up, hair and nail touch ups. There were also many new things to discover in the retail sphere. Vintage & Rags presented a new retail concept for second-hand fashion and SPSR showed how to take retail entertainment to the next level through unique live consumer engagement. On the Content Cube stage, Daniel Steindorf, the former owner of Überfahrt, spoke with Inga Klaassen from J'N'C about hospitality fusion, community, and retail, next to other speakers.

SEEK put a stronger focus on sustainability
As in previous editions, a relaxed and positive mood prevailed at SEEK. The community was happy to finally fall into each other's arms again. SEEK convinced with high-quality and original brands and an even stronger focus on sustainability. For the first time, SEEK's brand portfolio consisted of 50% sustainable brands, further strengthening the Conscious Club and allowing it to flourish. The Conscious Club was supported by the sustainability experts from studio MM04, whose 202030 - The Berlin Fashion Summit Denim Pop-up ensured a full Content Cube.

Decision-makers and fashion professionals discussed the learnings of the denim transformation, the new green claims of the EU textile strategy as well as pragmatic solutions on how to remain and act more sustainable and competitive as an industry and individual brand. As a counterpart to Black Friday, Cold Friday, initiated by Dojo Cares, was presented as the "biggest awareness campaign since sales days have existed". Fair fashion and fair working conditions were the focus of the final conference of the "Good Clothes Fair Pay" press conference by Fashion Revolution, which was also part of the Conscious Club. On top of a lot of sustainability inspiration, for the first time there was a space for D2C brands such as VGB and ADR Atelier Roupa, who were involved both as brands and as speakers in the content programme. For two days, two stages were filled with talks and panels with the most relevant themes from fashion, lifestyle, culture and business. Gen Z, Gen Y and Gen Alpha met for espresso martinis and club culture vibes at "Platte raves the Ground" to discover and stage the coolest styles of the scene.