From the Sector

The Supervisory Board of SGL Carbon SE today appointed Dr. Torsten Derr as Chief Executive Officer of SGL Carbon SE for the duration of five years effective July 1, 2020. With this appointment, Dr. Derr is succeeding Dr. Jürgen Köhler, who resigned from his mandate as Chief Executive Officer of SGL Carbon SE effective August 31, 2019.  

Since 2016, Dr. Torsten Derr is holding the position of Managing Director of SALTIGO GmbH, a subsidiary of LANXESS AG. Following his master degree and attainment of his PhD in chemistry at the University of Bremen, Dr. Derr began his professional career 1997 at Bayer AG, and since 2003 at LANXESS AG, where he was Vice President for Plastic Intermediates, Head of the Business Units Material Protection Products and EDPM-Elastomers, as well as holding various other management functions, amongst others as Head of Commercial & Supply Chain Excellence & Chief Commercial Officer of LANXESS AG.

At this year’s JEC World, the largest trade fair for composites held from March 3-5, 2020 in Paris, SGL Carbon will focus on the topic of serial production for the automotive, aerospace and industrial sectors. The key is customized solutions with individual component designs combined with tailored materials and production processes ready for large scale production. Under the motto “The Solution Provider,” the company will present selective innovative component solutions from all three areas in Hall 6, Booth D25. Furthermore, as an example for industrial applications, SGL Carbon will showcase at the JEC world a crossbeam made of carbon fiber reinforced plastics (CFRP) used in automated Schuler press lines.

•    Composite battery enclosures for e-mobility
•    Flexible new leaf spring generation for rear axles
•    Innovative component designs for passenger airplanes, helicopters and air taxis
•    Extremely lightweight and stable transfer beam for mechanical engineering

Selective applications with focus on serial production
In the field of automotive applications, SGL Carbon will present at the JEC World composite battery enclosures as a promising new application driven by increasing demand for electric vehicles and the resulting new flexible chassis platforms. The company demonstrates a prototype of a battery enclosure based on carbon fibers. However, hybrid composites with a mixture of glass and carbon fibers are also possible.

In the aerospace sector, SGL Carbon is also expanding its portfolio of realized projects and expertise relying on the trend to use more efficient materials and processes in this industry too.
In the area of primary structure components, the company will present a demo exhibit for the door frame of a passenger airplane realized in collaboration with external partners and based on 50k carbon fiber from the SGL Carbon, which is suitable for serial production.

Live simulations and intense exchange at the booth
Visitors can experience live how their ideas can be implemented both sustainably and cost-effectively in composites thanks to simulations. Experts from the company’s own Lightweight and Application Center demonstrate the path from the concept to virtual prototypes using simulation software, with the result visible either to the entire audience or just individual visitors. To prepare, interested parties can contact the team now at the following link: https://www.sglcarbon.com/anmeldung-jec.

On March 4, 2020, the SGL Carbon stand will host its traditional get-together for customers and friends starting at 4 p.m. – no registration necessary.
 

Fashion giant H&M Group and Danish retailer Coop are joining chemical expert NGO ChemSec’s call to action to end the use of harmful PFAS chemicals in products and supply chains.
This commitment comes on the same day as award-winning actor Mark Ruffalo and director Todd Haynes address the EU Parliament to speak about the true story that inspired the duo’s latest film Dark Waters, in which an environmental attorney takes on chemical giant DuPont and exposes decades of PFAS pollution.
ChemSec’s corporate PFAS initiative includes:

• A call on policy makers to regulate PFAS efficiently, without the possibility for manufacturers to simply swap one PFAS chemical for an unregulated “cousin”.
• A call on the chemical industry to put money into innovation and develop safer alternatives to PFAS for all kinds of products.
• A recognition that PFAS are a major health and environmental problem.
• A serious commitment to end all non-essential PFAS uses in products and supply chains.
• A call on all other brands to join this commitment and work towards a phase-out of PFAS in all kinds of consumer products.

The single biggest problem with PFAS is that, with very few exceptions, they are perfectly legal to use. This means that the brands and retailers who want to stop it from being used as ingredients in their products have very limited ways of communicating this in the global supply chain. As long as there is not a restriction in place, suppliers will continue to use these very effective chemicals in manufacturing.  

PFAS, short for per- and polyfluoroalkyl substances, is a chemical family consisting of almost 5,000 industrially produced chemicals. In manufacturing, PFAS are favoured for their durability and well-functioning properties; they provide properties such as non-stick, water repellence and anti-grease to many types of products, including cosmetics, food packaging, frying pans, outdoor gear and firefighting foam.
The industrial use of PFAS has been so prevalent in the last decades that today 99% of every human, including foetuses, have measurable levels of PFAS in their bloodstreams.   
What is worrying is that human epidemiological studies have found associations between PFAS exposure and a number of health disorders, including various cancers, lowered birth weights and negative effects on the immune system.

The Lenzing Group completed the second pilot production plant announced in May 2018 for its innovative filament yarn TENCEL™ Luxe. Construction of the facility at the Lenzing site involving investments of EUR 30 mn could be concluded on schedule and within budget after 20 months of intensive work. The new pilot production line, which was put into operation in the middle of December 2019, gives Lenzing sufficient capacity for commercial programs and further application development.

Innovation in the eco-couture segment
Thanks to TENCEL™ Luxe, Lenzing is able to embed the issue of sustainability in the premium luxury market in combination with superior aesthetics. The properties of the fine filament yarn can be compared to those of silk due to its airy feeling on the skin and the matte finish. At the same time, TENCEL™ Luxe also stands out because of its extensive strength and high level of environmental compatibility. It is perfectly suited for very fine fabrics and as a blending partner for silk, cashmere and wool. “TENCEL™ Luxe opens up new markets for Lenzing and thus contributes to the successful implementation of their sCore TEN corporate strategy.

At the Swiss-Egyptian Investment Forum which took place on February 3 in Cairo (Egypt), the Cotton & Textiles Holding Company and Rieter signed additional contracts related to the modernization program for the Egyptian textile industry.

Further Orders from Egypt:

• Contracts for additional projects signed in Cairo
• Order volume is around 30 million Swiss francs
• Order intake in the first half year of 2020 expected

The total volume of the contracts sums up to around 210 million Swiss Francs, including the contracts which had been signed at ITMA 2019 in Barcelona and which represent a volume of around 180 million Swiss Francs.

Rieter expects the full amount of orders to be booked as order intake in the first half year of 2020. So far, 165 million Swiss Francs have been booked.

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

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

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

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

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

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

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

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

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

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

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

Bemberg™ gears up for Première Vision - February 11th-13th, Paris, France; with a great deal of novelties and a key statement on sustainability: Let’s Make it Circular! That’s why the Japanese brand of regenerated cellulose fibers joins the fair with two booths, one in the yarn-focused sector – Hall 6 C52 6D53 – the other one in the Smart Creation area, the curated district showcasing cutting-edge sustainable innovation for the textile and fashion business. Hall3 S14.

“We simply could not miss out on the Smart Creation Area as sustainability is the founding pillar of our company,” says SHUNSUKE SATO, sales manager of Bemberg™ by Asahi Kasei. “Indeed, the smart fiber is made from a cotton linter which is pre-consumer material, a natural derived source, that doesn’t deplete forestry resources. The strategy beyond our double presence is to highlight our deep commitment to responsible innovation to a larger target of professionals.”

Let’s take it circular! is the motto at the Smart Creation booth. The lifespan of Bemberg™’s regenerated cellulose fiber derived from cotton is fully circular: from the source to manufacturing. The whole sustainable closed-loop process is supported by the LCA study, signed by ICEA and validated by Paolo Masoni. Recyclability is granted by the Global Recycle Standard - GRS certification by the renown Textile Exchange. An influential guarantee that involves the whole production process and supply chain behind the company’s smart yarns. Bemberg™ yarns are entirely biodegradable and ecotoxicity-free – meaning that at the end of their life circle they break down into the environment leaving no trace in terms of toxic substances as attested by the Innovhub-SSI report.

On show at Première Vision some of the most recent collaborations with GRS-certified partners such as FIVEOL, SMI TESSUTI, TESSITURA UBOLDI, INFINITY, SIDONIOS, MATIAS & ARAUJO, TINTEX, IPEKER, EKOTEN, for fashion fabrics as well as PEZZETTI and BRUNELLO & G.CRESPI from lining partners.

The first Bemberg™ partner to present a commercial collection enriched by Velutine™ Evo is the Portuguese Matias & Araújo. With an innovative spirit, dynamism and a determined entrepreneurial spirit, the company is a leading knitwear producer for the textile industry.

In the Hall 6 Bemberg™ displays key commercial items developed by premium brands such as CAALO that is making its mark in the outerwear market with its Sustainably produced Functional-Luxury proposal. For SS20, CAALO utilized Bemberg™ lining because of the sustainability properties and it's unique colour.

CAALO looks to utilize as much eco-friendly and sustainable materials as possible without compromising on design or quality. This Bemberg™ lining was a perfect fit.

• Sales were significantly down on the previous year, falling by 29% to CHF 760 million
• EBIT margin of around 11% and net profit of around 7% of sales anticipated, non-recurring profit contribution from sale of real estate in Ingolstadt (Germany)
• Order intake up 7% on previous year; order intake amounting to CHF 401.6 million booked in fourth quarter 2019 (4th quarter 2018: CHF 119.0 million)
• First half of 2020 expected to be significantly lower than previous year in terms of sales and earnings
• Further capacity adjustment measures introduced
• Start of construction of Rieter CAMPUS expected during 2020, subject to granting of building permit

The Rieter Group closed the 2019 financial year, as expected, with considerably lower sales than in the previous year. According to the first, unaudited figures, total sales of CHF 760.0 million were achieved, which is 29% down on the previous year (2018: CHF 1 075.2 million). At CHF 926.1 million, order intake was 7% higher than in the prior year period (2018: CHF 868.8 million). Rieter will publish the full annual financial statements and the 2019 Annual Report on March 10, 2020.

So far, ROICA™ has become a global success in the market reaching in the end consumer’s wardrobe. At Première Vision, the company takes place at the Smart Creation Area, the fair’s centre of sustainability. On show in Paris premium collaborations for the wardrobe of tomorrow starting from G-Star Raw smart jeans and Licia Florio’s soft sports apparel.

“A true pioneer cannot only be the first one of the leading one. It must commit to raise the bar.” Says Shinohe Hiroaki, ROICA™ Chief Marketing Officer based in Germany. “That’s why we are working to evolve and empower the smart yarns of the certified ROICA Eco-Smart™ family with additional performances.”