From the Sector

Die AZL Aachen GmbH, bekannter Innovationspartner für Industriekooperationen auf dem Gebiet der Leichtbautechnologieforschung, startet eines neuen Projekts mit dem Titel "Trends und Designfaktoren für Wasserstoffdruckbehälter". Das Projekt wird Fragestellungen der Industrie in Bezug auf die Wasserstoffspeicherung adressieren.

AZL Aachen GmbH, a recognized innovator in lightweight technologies research and industry collaboration, announces the initiation of a new project titled "Trends and Design Factors for Hydrogen Pressure Vessels". The project aims to address industry needs surrounding hydrogen storage.

Hydrogen has gained significant attention as a key technological solution for decarbonization, with high pressure storage and transportation emerging as vital components. Its applications extend from stationary storage solutions to mobile pressure vessels employed in sectors such as transportation and energy systems.

The AZL team, renowned for its high reputation in providing market and technology insights as well as developing component and production concepts in the format of Joint Partner Projects seeks for companies along the whole composite value chain interested in further developing their application know how in this economically highly relevant field.

The project will provide an in depth exploration of market insights, regulatory standards, and intellectual property landscapes. Beyond this, there is a dedicated focus on staying updated with state of the art and advancements in design, materials, and man ufacturing techniques.

An integral component of the project involves the creation of reference designs by AZL´s engineering team. The reference designs will encompass a variety of pressure vessel configurations and will consider a diverse range of materials and production concep ts.

With the scheduled project start in October 2023, and a project timeline of approximately nine months, AZL encourages companies active across the composite value chain to participate. Companies interested in participating or seeking further information should reach out directly to the AZL expert team.

On 5th September 2023, the Amsterdam: Best of Bangladesh Europe’ started in the venue of Wastergas in Amsterdam. The 2-day nation branding event was organized by Bangladesh Apparel Exchange (BAE), with support from the Embassy of Bangladesh, Ministry of Commerce, Export Promotion Bureau (EPB) of Bangladesh and in association with PDS.

Tipu Munshi, MP, Commerce Minister, Government of the People’s Republic of Bangladesh; Michiel Sweers, Vice Minister of Foreign Economic Relations, Kingdom of the Netherlands; Shahriar Alam, MP, State Minister for Foreign Affairs, Government of the People’s Republic of Bangladesh; Md Siddiqur Rahman,  Former president of BGMEA; M Riaz Hamidullah, Ambassador of Bangladesh to the Netherlands; Leslie Johnston, Chief Executive Officer, Laudes Foundation; Pallak Seth, Founder & Vice Chairman, PDS Limited; and Mostafiz Uddin, Founder & CEO, Bangladesh Apparel Exchange; attended the inaugural ceremony of the ‘Best of Bangladesh’.

Three MoU were signed in the inaugural for the development of the industries of Bangladesh.
The 1st MoU was signed between Bangladesh Apparel Exchange and Eindhoven International Project Office (EIPO). The 2nd MoU was signed between Bangladesh Apparel Exchange and Apparel Impact Institution. The 3rd MoU was signed between Bangladesh Apparel Exchange and Oxfam.
More than 35 companies from various fields, including apparel, textiles, agriculture, handicrafts, and other sectors, participated in the initiative.

The event held six interactive panel sessions on the topics "Bangladesh – Perspectives from an Emerging Economy", "Sustainable Sourcing Realities: Challenges, Achievements & Next Steps”, “Empowering the Future: Advancing Safety & Well-being for Garments Workforce in Bangladesh", "Bangladesh Agro-Food: A Next Opportunity for Collaboration", "Impact Investing - The Next Frontier", and “Sustainable Synergy: Circular Economy, Climate Action & Bangladesh’s Future".

A Bangladesh Innovation Runway was presented by Pacific Jeans at the event. The Bangladesh Innovation Runway showcased the ability of the country in producing high end, sustainable and innovative apparel products.

Toray Composite Materials America, Inc. headquartered in Tacoma, Washington, has been awarded the "Boeing Supplier of the Year" award, a leadership-nominated award given to supplier companies that support and propel Boeing's strategic objectives through risk-sharing and enduring partnerships. This year, 12 companies were selected from among 11,000 Boeing suppliers worldwide, and CMA was selected as one of them for the Alliance Award. This is Toray's second award from Boeing, receiving the Supplier of the Year Excellence Award in 2019.

Toray began supplying Boeing in 1975 when it first qualified TORAYCA™ T300 carbon fiber for commercial application on the Boeing 737. Since then, Toray has provided high-performance carbon fiber and highly toughened, primary structure carbon fiber composite prepreg on various programs.

The trophy was presented by William A. Ampofo II, Vice President of Parts & Distribution Services and Supply Chain for Boeing Global Services and Chair of the Supply Chain Operations Council to CMA.

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.

SETEX Schermuly textile computer GmbH, a global leader in manufacturing process management software and textile machinery controls, is pleased to announce the transfer of a majority stake to Elvaston Capital Management GmbH.

Private equity partner Elvaston has established the overarching Textile Solutions Holding GmbH. This company will manage a portfolio of technology companies that ensure seamless integration along the textile process chain and introduce unique market functionalities.

The current company owners of SETEX, Christoph and Oliver Schermuly, will continue their roles as managing directors.

SETEX is convinced that this step will further expand SETEX's competitiveness and growth potential.

The Lenzing Group, a leading provider of specialty fibers for the textile and nonwoven industries, has made significant technical improvements to its Purwakarta site (PT. South Pacific Viscose). Lenzing has invested more than EUR 100 million since 2021 to convert existing production capacity to specialty viscose. With the imminent completion of the investment, Lenzing is in a better position to serve the strongly growing demand for specialty fibers.

Lenzing is striving for certification according to the standard of the internationally recognized EU Ecolabel1. The product portfolio would thus include LENZING™ ECOVERO™ branded fibers for textiles and VEOCEL™ branded fibers for nonwoven applications. In the course of these substantial investments, Lenzing has set the goal of significantly reducing emissions at the site. Moreover, the site started to obtain renewable grid electricity and promotes a changeover to biomass in line with Lenzing's goals of reducing carbon emissions per ton of product by 50 percent by 2030 and achieving carbon-neutral production by 2050.

“Demand for specialty fibers with low environmental impacts continues to grow structurally. We see enormous growth potential in Asia in particular. Through our investments in Indonesia and also at other Lenzing sites worldwide, we are in a better position to serve this growing demand. At the same time, we continue working tirelessly to make the industries in which we operate even more sustainable and to drive the transformation of the textile business model from linear to circular,” says Stephan Sielaff, Chief Executive Officer of the Lenzing Group.

Autoneum's consolidated revenue increased by 24.1% from CHF 888.7 million to CHF 1 102.6 million in the first half of 2023. The Group grew significantly both organically, thanks to a market recovery in Europe and North America, and inorganically, through the acquisition of the traditional German company Borgers. All business units improved their profitability compared to the prior-year period. EBIT adjusted for special effects increased by CHF 33.0 million to CHF 45.0 million and the EBIT margin rose from 1.4% to 4.1% compared to the prior-year period. EBIT rose by CHF 78.5 million to CHF 84.9 million in the same period, with an increase in EBIT margin of 7.0 percentage points to 7.7%. Autoneum achieved a solid net result of CHF 57.8 million. Business Group North America nearly reached break-even point before special effects. As planned, the Borgers units, consolidated for the first time in the second quarter, made a positive contribution to the overall result from day one.

Economic conditions in the automotive supply industry improved in the first half of 2023 compared to the prior-year period. There was a slight easing of supply chains and a rise in production volumes among vehicle manufacturers already in the first quarter of 2023. This was especially true in markets that had previously been heavily impacted by supply chain bottlenecks.

Global automobile production climbed by 11.8%* compared with the prior-year period, although consumer demand was somewhat dampened by high vehicle prices in some markets. In this improved market environment and supported by the acquisition of the automotive business from Borgers, a long-standing German company, as of April 1, 2023, Autoneum increased its revenue and net result substantially in the first six months compared with the same period of the previous year.

• Positive revenue development supported by inorganic growth
• Significant improvement of operational profitability and solid net profit
• Equity ratio influenced by the acquisition of Borgers Automotive
• Creation of a capital band
• Business Groups
• Integration of Borgers automotive business
• Working on behalf of electromobility with sustainable noise absorption in underbody
• shields
• Change to the Group Executive Board
• SBTi recognizes Autoneum’s science-based targets

Outlook unchanged
According to the current S&P market forecasts, it is expected that global automobile production will climb by 5.7%* in 2023 compared with 2022. Autoneum anticipates that production volumes in the various regions will develop in line with the forecasts. Customer negotiations are ongoing and Autoneum expects that the increase in costs for raw materials, energy, transportation and staff will be completely offset in the second half of the year. Based on the forecast market development and the renegotiated customer agreements, Autoneum confirms the outlook that it published in March 2023. The Company expects total revenue of CHF 2.4 to 2.5 billion at unchanged exchange rates for the financial year 2023, an EBIT margin of 3.5% to 4.5% excluding one-time effects and a free cash flow in the higher double-digit millions, excluding acquisition-related net cash outflows.

For more information, see attached document.

*Source: S&P market forecast – August 15, 2023

DyStar, a leading specialty chemical company announced the release of its thirteenth annual Integrated Sustainability Report. The report is prepared in accordance with the updated GRI Standards 2021: Core Options. Despite the challenging business landscape and economic situations, DyStar remains committed to delivering tangible values that the Group has strategically created through the six major capitals, using the Integrated Reporting <IR> framework.

DyStar’s business strategies have proven their effectiveness and delivered significant progress toward its 2025 targets. The company has successfully reduced its environmental footprint in Greenhouse Gas Emission intensity and Wastewater production intensity by more than 30%, compared to the baseline year 2011.

More specifically, DyStar’s Scope 1 and Scope 2 Greenhouse Gas (GHG) Emissions intensity was 45% lower (tCO₂e per ton production) than the baseline year 2011, with a totaled GHG emission of 56.91 thousand tCO₂e. This is also 9% lower when compared to FY2021.

Similarly, for Wastewater production intensity, DyStar achieved a 52% reduction compared to baseline year 2011, and a 24% reduction from FY2021.

Some other key highlights and value-adds include (when compared to FY2021):

• Financial Capital: The results of production efficiency and streamlining manufacturing indirectly contributed to the reduction of 5.8% in operating cost
• Manufactured Capital: Apart from ensuring quality suppliers through DyStar’s internal audit, DyStar’s effort on environmental performance and climate impacts with the Institute of Public & Environmental Affairs (IPE) was recognized and ranked second by industry on IPE’s Green Supply Chain Corporate Information Transparency Index (CITI)
• Intellectual Capital: The innovative Cadira® modules continue to support the supply chain with a lower carbon footprint
• Human Capital: The full launch of DyStar University (DSU), a proprietary LMS, supports the learning and development of employees globally
• Social Capital: DyStar’s culturally diverse workforce organized a variety of activities and events in support of its global community and made a total contribution of USD 128,946 to various corporate social responsibility (“CSR”) program.

Despite the harsh economic headwinds, these figures further demonstrated the effectiveness of DyStar’s initiatives that were installed throughout the reporting year.

DyStar maintains a cautious yet optimistic outlook on its global performance.

From mechanical engineering to the construction industry, from logistics to rescue technology – tensioning and clamping systems fulfil important tasks in a number of industries. The possible uses of technical textiles for industrial applications of this kind are manifold.

Patented and precisely configured
The ElasTool system from the elastics expert consists of a connection tool and a rubber rope connected to this tool via integrated locking elements. The stainless steel, aluminium or plastic connection tool and the rubber rope – with a thickness of between 12 and 38 mm – are each configured to fit precisely. The highlight of the patented connection solution: the more tensile force is exerted, the more the rope is jammed. Thanks to the locking system, ElasTool still provides a secure hold even when the diameter of the rubber rope narrows to up to 60 percent due to the tensile load. A crucial advantage over conventional end connections by pressing.

Economical and low maintenance
The system has further advantages: the textile solution runs quietly. Unlike clamping systems with steel cable springs, there is no creaking here. In addition, textiles, plastic and aluminium are particularly lightweight materials. ElasTool therefore saves energy. Another benefit: the connection system works without lubricating oil. While conventional tensioning and clamping solutions in industrial plants and products have to be oiled regularly, the JUMBO textile system works completely maintenance-free.

Versatile and easily interchangeable
Depending on the area of application of the ElasTool, the interchangeable head can be exchanged: Plastic hook instead of aluminium eyelet, stainless steel flange instead of aluminium hook – for example. The interchangeable head can be replaced effortlessly and without special tools.

"A lifting system in a high-bay warehouse, a trolley in a crane, damping for compressors or crash systems – these are just three of the many possible applications. We adapt the dimensions, material, force-stretch behaviour, flame retardancy – like all properties – specifically to the respective project," emphasises Carl Mrusek, Chief Sales Officer of JUMBO-Textil. "Thus, with ElasTool, we offer a safe load connection for a wide variety of applications in industry."

ElasTool from JUMBO-Textil

• Lightweight and flexible alternative to conventional tensioning and clamping systems
• Suitable even in small installation spaces
• With individual specifications and infinitely customisable dimensions
• Connection tool optionally made of plastic, aluminium or stainless steel
• Rubber rope in a thickness of 12 to 38 mm
• Rubber rope made of polyamide, polyester, recycled PES, polypropylene, aramid, Dyneema, monofilament, natural fibres
• Different interchangeable head shapes possible
• As an end connection or for coupling with other machine elements
• Tensile load up to 600 N, in individual cases more than this
• Individually configurable e.g. with hook, eyelet or flange

• Revenue of US$4B, a decline of 1% QoQ and 27% YoY
• Reported EBITDA of US$321M, an increase of 7% QoQ and decrease of 68% YOY
• Operating cash flows of US$491M
• Net Operating Debt to Equity of 0.95x
• Reported EPS of THB 0.04

Indorama Ventures Public Company Limited (IVL) reported marginally improved quarterly earnings as the company’s inherent advantages and continued focus on improving competitiveness helped bolster its business amid a continued weak operating environment.

Indorama Ventures achieved Reported EBITDA of $321 million in 2Q23, an increase of 7% QoQ and a decline of 68% YoY. Sales volumes remained resilient, rising 4% QoQ, amid continued destocking in the global chemicals industry from its peak in 4Q last year. Management is taking steps to conserve cash and safeguard the company’s competitive advantages as the global industry is impacted by increased capacity and lower margins with China boosting exports to offset muted domestic demand. Measures include redoubling efforts to reduce working capital and capex targeting $500 million of cash savings this year, optimizing the company’s European manufacturing footprint, and continued focus on Project Olympus, digitalization, and organizational enhancement.

Volumes are expected to improve in the second half of the year, with all three of Indorama Ventures’ business segments benefiting from the management measures and a gradual improvement in the outlook for the industry. Combined PET, the company’s largest segment, posted Reported EBITDA of $194 million, a 37% increase QoQ as destocking eased in most markets and supported stable volumes. Sales volumes are expected to grow in the second half of the year as manufacturing is optimized in Europe and expansion projects ramp up in India.

Fibers segment achieved Reported EBITDA of $20 million, a decrease of 37% QoQ, impacted by lower margins in the Lifestyle vertical and weak demand for Hygiene products in Europe. Volumes are expected to improve as manufacturing in Europe is optimized and expansion projects come online in the U.S and India. Mobility fibers volumes will see improvement in line with increasing automotive demand. Integrated Oxides and Derivatives (IOD) segment posted a 27% decline in QoQ Reported EBITDA to $94 million amid destocking in Crop Solutions market. Volumes will continue to be supported by reducing levels of destocking in the downstream portfolio.