From the Sector

RUDOLF, a global provider of specialty chemicals, sustainable solutions and services for the global textile industry celebrates the beginning of a whole new chapter with a new corporate brand identity.

RUDOLF’s products have always been rooted in science and experience, whereas RUDOLF’s brand has always been a celebration of trust, reliability and inclusiveness. The new brand identity is directly extracted from the historical and cherished company’s heritage mark and it is a very modern interpretation of the same. A very contemporary brand identity for a very contemporary organization that proudly steps into its second centenary of operations – with a global mindset.

Since 1922 RUDOLF has been fueling the textile, construction and other industries with very same innovative energy so necessary to ensure continuous progress and to solve some of our civilization's current and future issues. An agent of positive change for a more sustainable living.

“Turning 100 years old is a very important milestone” says Dr. Wolfgang Anton Schumann, current MD at RUDOLF “However, it isn’t a finish line at all but, rather, the beginning of a whole new chapter. As we change pace, we send out a very important signal and transform what is most precious, intimate and meaningful to us. We change the essence of who we are: our corporate branding. We took inspiration from our heritage mark with the idea of using it as launch pad to the future. Because the future isn’t going to be what it used to be”.

• Exceptional achievement of research work on the use of Nuclear Magnetic Resonance (NMR) spectroscopy for understanding PET depolymerization enzymes

Carbios (Euronext Growth Paris: ALCRB), a pioneer in the development of enzymatic solutions dedicated to the end-of-life of plastic and textile polymers, announces the publication of an article entitled “An NMR look at an engineered PET depolymerase” in the scientific journal Biophysical Journal.

The article describes the use of Nuclear Magnetic Resonance (NMR) spectroscopy to study the thermal stability of PET depolymerization enzymes and the mechanism of adsorption of the enzyme on the polymer. This innovative approach, which required months of development, is a world first and opens up new ways of improving these enzymes. This publication confirms Carbios' international lead in the development of the most efficient enzymes for the depolymerization and recycling of plastics.

Prof. Alain Marty, Chief Scientific Officer of Carbios and co-author of the article, explains: “ Nearly 25 researchers are currently working on our unique enzymatic technology. It is based on academic collaborations with the world's leading experts in their fields..”

Dr. Guy Lippens, CNRS Research Director and co-author of the artcle, adds: “Nuclear Magnetic Resonance (NMR) is an extraordinary biophysical technique for visualizing an enzyme directly in solution. Our study is the first to use NMR as a complementary technique to crystallography and molecular modeling to observe a PETase. This gives new perspectives to better understand the functioning of these enzymes and it makes it possible to imagine new ways of improving these enzymes. ”

The FACHPACK in Nuremberg ranks among the most important packaging industry gatherings. From 27 to 29 September 2022, Sappi will be presenting its latest products and solutions for functional paper packaging, flexible packaging papers, label papers, containerboard and paperboard. The company is focusing its efforts on sustainable, recyclable and innovative solutions.

• Wide range of barrier papers in the market for sustainable and recyclable packaging solutions
• High-impact brand presence in corrugated board packaging thanks to Fusion Nature Plus in combination with Fusion Topliner
• Parade Label Pro wet-glue label paper for an efficient operation and an excellent visual impression

Wide range of barrier papers
Sappi’s ultimate goal as a specialist in barrier papers is to replace non-recyclable aluminium and plastic multi-layer laminates through the introduction of truly sustainable alternatives that meet all market requirements in terms of performance and recycling. Sappi is continuously expanding its portfolio of barrier papers. At the show, Sappi will be showcasing several examples of food and non-food applications using these barrier papers.

A smooth surface and a high degree of whiteness: Parade Label Pro
Sappi will also be presenting its new, non-wet-strength wet-glue label paper Parade Label Pro – featuring samples from all over the world. This glossy, double-coated quality paper offers a smooth surface plus a high degree of whiteness. It’s suitable for numerous label and flexible packaging applications, such as labels for disposable bottles, food and non-food containers as well as wrappers for a variety of products. It can be printed in offset, flexo and gravure, and finished with hot foil and blind embossing, for example.

Brand presentation that appeals to the senses
“For manufacturers of branded goods, it is becoming increasingly important to convey brand values and product characteristics in a way that is emotionally appealing and that really sets the stage,” explains Luis Mata, Sales Director Packaging of Sappi Europe. At the FACHPACK, Sappi will also be presenting its containerboard products for corrugated board applications, which, with their brilliant colour reproduction, enhance on-shelf product impact and ensure real brand differentiation.

Sappi’s popular Algro Design paperboard portfolio also allows the design scope and leeway to communicate brand values in an emotionally appealing way.

• China Penalty Tariffs on Finished Textiles & Apparel Give U.S. Companies a Chance to Compete and are a Powerful Trade-Negotiation Tool, NCTO Tells U.S. International Trade Commission

Section 301 penalty tariffs on finished Chinese textile and apparel imports give American manufacturers a chance to compete and provide trade officials with an essential trade negotiation tool, the National Council of Textile Organizations (NCTO) told a key government panel today in a formal written submission. Removing them, the association said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.

Those were among the key points outlined by NCTO President and CEO Kim Glas in a written testimony submitted to the U.S. International Trade Commission during three days of hearings on the economic impact of Section 301 China tariffs and Section 232 steel tariffs on U.S. industries.

The 301 penalty tariffs should be maintained “absent substantive improvements in China’s pervasive, predatory trade practices,” Glas said in her testimony.  China’s illegal actions “have put U.S. companies at a serious disadvantage, and tariffs give American manufacturers a chance to compete.” Glas noted that U.S. trade officials have “stressed that the penalty tariffs also create leverage and are a ‘significant tool’ in ongoing negotiations with China.”
 
While some advocates for lifting the tariffs point to concerns about inflation, Glas said, “canceling these penalty duties would do little to ease Americans’ inflationary pains.” She also noted that “apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs in place. As detailed in an economic study recently released by Werner International, U.S. import prices for apparel from China have dropped 25 percent since 2019 and 50 percent since 2011.”

Glas also warned that lifting the tariffs would have “a substantial negative ripple effect” on U.S. free-trade agreements, including undermining those with Western Hemisphere partners that have established shorter coproduction supply chains and serve other U.S. and regional interests.

The Section 301 tariffs were first imposed in 2018 in response to China’s persistent violations of intellectual property rules. By law, they are now under review.

The partnership will aim at eliminating hazardous Potassium Permanganate Spray and most manual processes in denim finishing, while reducing Greenhouse Gas emissions, water and chemical use in the process

Hong Kong based Epic Group, a leading garment manufacturer for global brands today announced its strategic partnership with CleanKore, a denim innovation and patent licensing company. This partnership aims at scaling the CleanKore patented yarn dyeing technology that provides numerous sustainability benefits for both the denim mill and garment manufacturer.

CleanKore patented technology changes the chemistry and the process used to dyeing yarns at the denim mills by keeping intact the white core of the yarn and only dyeing the surface. This technology significantly reduces water, chemicals and process time in the denim garment finishing stage.

Denim garment finishing often involves onerous manual processes such as handsanding and hand whiskering, spraying of harmful Potassium Permanganate (PP) (done by heavily protective equipment donned personnel), and multiple washing cycles. CleanKore technology coupled with lasers enable elimination of the PP spray process, significantly improving health and wellbeing of apparel workers, as well as emissions of harmful chemicals. Manual processes are eliminated in most styles and significantly reduced in others.

CleanKore technology also enables the reduction of wash cycles – reducing water, chemical use and process time, adding to the sustainability credentials of the end products. The products currently tested by Epic Group and CleanKore demonstrate up to 44% of water savings in garment finishing and up to 60% of energy savings in the fabric dyeing stage, along with the elimination of PP spray.

Through their partnership, Epic Group and CleanKore are planning to rapidly scale up the adoption of this technology in partnership with Epic Group’s customer base. In the first year, the partnership plans to reach over 4 million pairs of denim and working towards a scale of 15 - 20 million pairs of denim per annum in the next 3 years, converting a large portion of Epic Group’s denim production to CleanKore technology.

Archroma, a leader in specialty chemicals towards sustainable solutions, announced that the 5’760 color references of its Color Atlas library will be available in ASE file format for open access to the users of most design software for fashion, apparel, and textiles. With this, designers and stylists are given open access to the largest library of colors for cotton and polyester.

ASE or .ase (for Adobe Swatch Exchange) files are used to upload, share and access colors through the swatch palette of design software such as Photoshop, Illustrator and most CAD (Computer-aided design) systems.

The Color Atlas by Archroma® was launched in 2016 to provide fashion designers and stylists with off-the-shelf color inspiration that can be implemented in production with just a few clicks.

The Color Atlas continues to evolve in line with Archroma’s commitment to sustainability through innovation. The company describes its approach as “The Archroma Way to a sustainable world: safe, efficient, enhanced, it’s our nature”.

All color references available in the Color Atlas have been formulated with products that comply with leading international eco-standards, and can be selected based on the desired sustainability profile.

Each color from the Color Atlas by Archroma® is available for purchase from Archroma as a physical color standard that includes precise digital data and access to global dyeing technical support.

adidas Basketball in collaboration with basketball GOAT and legend, Candace Parker , unveils the new Candace Parker Collection Part II with retail partner DICK’S Sporting Goods. Rooted in a shared commitment to empower aspiring women athletes and hoopers – who like Parker set out to create their own legacy, the encore collection is the embodiment of Parker’s evolution on-and-off the court melding Ace’s style and performance insights for the next generation player.

The Candace Parker Collection Part II launches with the all-new Exhibit B, arriving in three custom colorways employing Lightstrike cushioning for fluid and dynamic handling. Each iteration of Parker's Exhibit Bs are inspired by her personal journey beginning with the “For Lailaa Nicole” receiving emerald green with silver accents in honor of her daughter. As for Parker, it’s not about “wearing the crown,” but about “sharing it” resulting in “Game Royalty”, a purple and gold colorway representing African queens followed by an ash blue and shadow navy for “Windy City” version signifying the hometown hero’s 2022 league title and rounded out by three unique Exhibit B “Elevated Team” colorways emphasizing the magic of teamwork.

The Candace Parker Collection Part II is an elevation for the new generation of athletes completed with a vibrant combination of pre to post-game apparel offerings including signature Ace sweatsuits, cropped jackets and hoodies, all paired with an assortment of tees and shorts that harken back to pivotal moments in Parker’s career. The return of inclusive sizing is paramount and purposeful, allowing Parker’s vision for expanded access to female and non-binary athletes who’ve traditionally had to size down to access men’s basketball apparel and footwear.

The 50th INNATEX fair opens its gates to a Green Fashion trade audience from 29 to 31 July 2022 in Hofheim-Wallau, near Frankfurt. At this anniversary fair, over 200 labels will be exhibiting, a wide range of experts and organisations will be gathering, and elaborate features and facilities are planned for the Rhein-Main exhibition centre.

According to INNATEX project manager Alexander Hitzel, one highlight is the Community Area, which brings together a range of experts. In short lounge talks, they reveal insights into what they are currently working on and a dialogue format encourages personal discussion. Mirjam Smend, whom we know well from Greenstyle Munich, introduces her recently launched sustainability magazine, Pureviu, and facilitates the morning talks.

Alongside standard bodies such as IVN and GOTS, which have taken part in INNATEX for many years, younger projects such as Fairmodel and the digital platform Retraced will be part of this special area. Fairtrade Germany, Femnet and the VDMD are to be found there too. Almost all of them are joining in with the Ask Me Anything dialouge format. Interested attendees can pre-book a slot of up to ten minutes for a personal discussion with the expert of their choice.

The supportive activities that had to be suspended during the pandemic are enjoying a comeback at this year’s summer fair: five newcomers to INNATEX designated DesignDiscoveries will be presenting their projects in another special area. Vegtus, from Barcelona, produces sneakers and other products from cactus leather. Natural textiles such as organic cotton are used by Lounge Cherie, a yoga fashion label.

Products for kids through to seniors, classics and streetwear, footwear and accessories
Nordlicht similarly relies on recyclable, renewable natural fibres for its outerwear, bags and accessories. The field of circular fashion is also served by the remaining two Design Discoveries. Both Nature is Future, with its handmade sneakers, and Freibeutler, with its functional rucksacks, make extensive use of recycled materials, while also paying due attention to broader sustainability aspects.

Regular INNATEX exhibitors include Lana, Chapati and Didymos, all of whom are also celebrating anniversaries. Labels such as Anokho with their colourful accessories in jacquard fabrics and Danish label Angel Circle with its plus-size fashion are exhibiting for the first time.

ISKO teams up with Paolo Gnutti, to break new ground in the world of premium, luxury denim. Combining ISKO’s advanced denim technologies with PG’s creative vision, the result is a special ISKO™ Luxury collection by PG, characterized by a unique high-end appeal.

The collection embodies ISKO’s most revolutionary technological innovations combined with the long-standing expertise of Paolo Gnutti, who explored aesthetics highly profiled to the unique needs of the luxury segment through 7 main moods:

1. Denim addicted, celebrating total denim looks, offering classic silhouettes mixed up with revised volumes and details;
2. Y2k, bringing back the 2000s typical style featuring exposed skin, low waist pants, micro tops, mini skirts, shrunken garments, butterfly decorations and embellishments;
3. Fanaticism, featuring bright, bold colors, intricate prints and logos combined with details that meet ample volume styles;
4. Bounder glam, all about glammed-up leather effects inspired by bikers' unapologetic style and applied to oversize fits, cutouts and lace-ups styles;
5. Moto’roll, where the iconic 60s and 70s biker style is back with a modern twist and a vast range of treatments and fabrics, offering men and women true crowdpleasers;
6. Gingham mania, an in-depth exploration of the gingham trend which finds expression through various dimensions and techniques that cater to any silhouette;
7. Rugged re-made, which celebrates workwear and historical garments creating a style that combines history with technologies, solutions and treatments to recreate that vintage look dear to the heart of lovers of denim heritage

• Order intake of CHF 869.4 million, order backlog of more than CHF 2 100 million
• Sales of CHF 620.6 million, preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022
• EBIT of CHF -10.2 million, net result of CHF -25.2 million due to significant cost increases, additional costs, and acquisition-related expenses
• Action plan to increase sales and profitability
• Rieter site Winterthur
• Outlook

Rieter continued to be successful in the market in the first half of 2022. Based on the company’s technology leadership, innovative product portfolio and the completion of the ring- and compact-spinning system, a high order intake and a significant increase in sales were generated. The increase in sales was achieved even though preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022. The order backlog is at a record level. Despite higher sales, the significant increase in material and logistics costs, additional costs for compensation of the material shortages and the expenditure incurred for the acquisition in the years 2021/2022 resulted in a loss. Rieter is implementing an action plan to increase sales and profitability. The sales process for the remaining land owned by Rieter was initiated.

Order Intake and Order Backlog
Rieter posted an order intake of CHF 869.4 million, which included CHF 176.6 million from the businesses acquired in the years 2021/2022. As expected, demand has thus returned to normal compared with the exceptionally high figure for the prior-year period, but remains well above the average figure for the last five years of around CHF 570 million (first half 2021: CHF 975.3 million, first half 2022 excluding acquisition effect CHF 692.8 million).

The regional shift in demand with investments in additional spinning capacity outside China along with investments in the competitiveness of Chinese spinning mills continues. Rieter benefits from its technology leadership, the innovative product portfolio and the completion of the ring- and compact-spinning system through the acquisition of the automatic winding machine business. The largest order intakes came from India, Turkey, China, Uzbekistan, and Pakistan.

On June 30, 2022, the company had an order backlog of more than CHF 2 100 million (June 30, 2021: CHF 1 135 million). Cancellations in the reporting period amounted to around 5% of the order backlog.

Sales
The Rieter Group posted sales of CHF 620.6 million, which included CHF 68.9 million from the businesses acquired in the years 2021/2022 (first half 2021: CHF 400.5 million).

As a result, sales were significantly higher than in the prior-year period, although preproduced deliveries, which mainly affected the Business Group Machines & Systems, in the three-digit million range had to be postponed until the second half of 2022. The reasons for the postponements were the COVID lockdown in China and supply chain bottlenecks.

EBIT, Net Result and Free Cash Flow
Rieter posted a loss of CHF -10.2 million at the EBIT level in the first half of 2022.

Earnings were impacted by significantly higher material and logistics costs. The price increases already implemented are having a delayed effect, mainly in the Business Group Machines & Systems, and were therefore unable to compensate for the high increase in costs. In addition, costs in connection with material shortages negatively impacted profitability. The result also includes acquisition-related expenses of CHF -11.2 million.

The loss at the net result level was CHF -25.2 million, of which CHF -17.6 million was due to the acquisition.

Free cash flow was CHF -57.1 million, attributable to the build-up of inventories in connection with the high order backlog and postponed deliveries.

Action Plan to Increase Sales and Profitability
Rieter is implementing a comprehensive package of measures with the aim of increasing sales and profitability in the second half of 2022.

The package focuses on two main priorities: Firstly, Rieter is continuing to systematically implement price increases while working to improve the quality of margins of the order backlog, so as to compensate for cost increases in materials and logistics.
Secondly, Rieter is working closely with key suppliers and is developing alternative solutions to eliminate material bottlenecks, as far as possible, in order to safeguard deliveries.

Rieter Site Winterthur
The Board of Directors has decided to begin the process for the sale of the remaining land at the Rieter site in Winterthur (Switzerland). In total, around 75 000 m2 of land will be sold.

Outlook
As already reported, Rieter expects demand for new systems to normalize further in the coming months. Due to the capacity utilization at spinning mills, the company anticipates that demand for consumables, wear & tear and spare parts will remain at a good level.

For the full year 2022, due to the high order backlog and the consolidation of the businesses acquired from Saurer, Rieter expects sales of around CHF 1 400 million (2021: CHF 969.2 million). The reduced sales forecast compared to early 2022 (March 2022: CHF 1 500 million) reflects the impact of global supply bottlenecks. The realization of sales revenue from the order backlog continues to be associated with risks in relation to the well-known challenges.

Despite significantly higher sales, Rieter expects EBIT and net result for 2022 to be below the previous year’s level. This is due to the considerable increases in the cost of materials and logistics, additional costs for compensation of material shortages as well expenses in connection with the acquisition in the years 2021/2022. Despite the price increases already implemented, global cost increases continue to pose a risk to the growth of profitability.