From the Sector

Researchers at the ITA, the University of Bonn and Heimbach GmbH have developed a new method for removing oil spills from water surfaces in an energy-saving, cost-effective way and without the use of toxic substances. The method is made possible by a technical textile that is integrated into a floating container. A single small device can remove up to 4 liters of diesel within an hour. This corresponds to about 100 m2 of oil film on a water surface.
 
Despite the steady expansion of renewable energies, global oil production, oil consumption and the risk of oil pollution have increased steadily over the last two decades. In 2022, global oil production amounted to 4.4 billion tons! Accidents often occur during the extraction, transportation and use of oil, resulting in serious and sometimes irreversible environmental pollution and harm to humans.

There are various methods for removing this oil pollution from water surfaces. However, all methods have various shortcomings that make them difficult to use and, in particular, limit the removal of oil from inland waters.

For many technical applications, unexpected solutions come from the field of biology. Millions of years of evolution led to optimized surfaces of living organisms for their interaction with the environment. Solutions - often rather unfamiliar to materials scientists and difficult to accept. The long-time routine examination of around 20,000 different species showed that there is an almost infinite variety of structures and functionalities. Some species in particular stand out for their excellent oil adsorption properties. It was shown that, e.g., leaves of the floating fern Salvinia molesta, adsorb oil, separate it from water surfaces and transport it on their surfaces (Figure 1, see also the video of the phenomon.).

The observations inspired them to transfer the effect to technical textiles for separating oil and water. The result is a superhydrophobic spacer fabric that can be produced industrially and is therefore easily scalable.

The bio-inspired textile can be integrated into a device for oil-water separation. This entire device is called a Bionic Oil Adsorber (BOA). Figure 2: Cross-section of computer-aided (CAD) model of the Bionic Oil Adsorber. The scheme shows an oil film (red) on a water surface (light blue). In the floating cotainer(gray), the textile (orange) is fixed so that it is in contact with the oil film and the end protrudes into the container. The oil is adsorbed and transported by the BOA textile. As shown in the cross-section, it enters the contain-er, where it is released again and accumulates at the bottom of the container. See also the video regarding the oil absorption on the textile, source ITA).
 
Starting from the contamination in the form of an oil film on the water surface, the separation and collection process works according to the following steps:

• The BOA is introduced into the oil film.
• The oil is adsorbed by the textile and separated from the water at the same time.
• The oil is transported through the textile into the collection container.
• The oil drips from the textile into the collection container.
• The oil is collected until the container is emptied.

The advantage of this novel oil separation device is that no additional energy has to be applied to operate the BOA. The oil is separated from the surrounding water by the surface properties of the textile and transported through the textile driven solely by capillary forces, even against gravity. When it reaches the end of the textile in the collection container, the oil desorbs without any further external influence due to gravitational forces. With the current scale approximately 4 L of diesel can be separated from water by one device of the Bionic Oil Adsorber per hour.

• It seems unlikely that a functionalized knitted spacer textile is cheaper than a conventional nonwoven, like it is commonly used for oil sorbents. However, since it is a functional material, the costs must be related to the amount of oil removed. In this respect, if we compare the sales price of the BOA textile with the sales prices of various oil-binding nonwovens, the former is 5 to 13 times cheaper with 10 ct/L oil removed.
  Overall, the BOA device offers a cost-effective and sustainable method of oil-water separation in contrast to conventional cleaning methods due to the following advantages:
• No additional energy requirements, such as with oil skimmers, are necessary
• No toxic substances are introduced into the water body, such as with oil dispersants
• The textiles and equipment can be reused multiple times
• No waste remains inside the water body
• Inexpensive in terms of the amount of oil removed.
• The team of researchers from the ITA, the University of Bonn and Heimbach GmbH was able to prove that the novel biomimetic BOA technology is surprisingly efficient and sustainable for a self-controlled separation and automatic collection of oil films including their complete removal from the water. BOA can be asapted for open water application but also for the use in inland waters. Furthermore, it is promising, that the textile can be used in various related separation processes. The product is currently being further developed so that it can be launched on the market in 2-3 years.

Syensqo announces the successful listing of its shares on Euronext Brussels and Euronext Paris under ticker SYENS. After the completion of the spin-off from Solvay, the listing marks a historical milestone as the company embarks on a journey focused on delivering superior growth and value creation.

Syensqo’s portfolio of market leading solutions addresses environmental and social challenges, through electrification, lightweighting, connectivity and resource efficiency. In addition, Syensqo is at the heart of the transition towards a net-zero economy, which is expected to drive new sources of value and support the company’s long-term growth.

With more than 13,000 employees and activities spread across the world (with 41% of FY2022 net sales in the Americas, 36% in Asia-Pacific and 23% Europe), Syensqo’s long-term ambition is to be the prime innovation partner for its customers, growing on average at around two times the rate of its main end markets, while further improving its best-in-class margin and returns.

Upon listing, Syensqo has 105,876,417 ordinary shares in issue, each carrying one voting right. The Syensqo share price started its journey at a value of € 90 at market open (9.00 am CET), which corresponds to a market capitalization of € 9.53 billion.

Together with the German circular knitting machine builder Mayer & Cie., Groz-Beckert has developed the optimized Relanit sinker SNK F over the past years. Independently of this, the development of the new LCmax™ energy-saving needles took place. The focus of both developments is on efficiency, energy savings and increased process reliability.

Groz-Beckert offers interested machine builders different cooperation options to jointly develop new products or optimize existing ones. The Groz-Beckert Technology and Development Center (TEZ) provides the appropriate framework for so-called co-development projects. At the ITMA in Milan in June 2023, Groz-Beckert presented some of the successful cooperations under the motto "Innovation through cooperation". Among them were two new developments realized with Mayer & Cie. Groz-Beckert presented the two new products for the first time in Asia at ITMA Asia in November 2023.

Optimized Relanit sinker SNK F
At the end of 2018, circular knitting machine manufacturer Mayer & Cie. approached Groz-Beckert with a request to jointly develop an improved and more efficient sinker for selected machines of their Relanit family that would run more smoothly and reliably in the needle tricks. The innovative sinker has an integral spring with a spring force that is adapted to the sinker thickness. Field tests were consistently successful and confirmed the functionality and advantages of the new sinker.

Thanks to their adapted spring, the newly developed SNK F Relanit sinkers are securely guided while they are running through the cam track, resulting in a quieter operation. This increases process reliability and ensures an improved loop structure. In addition, wear on the swivel butts of the sinkers is reduced. This increases service life and makes the process more sustainable and cost-efficient.

Higher energy efficiency thanks to LCmax™
The objective second recent cooperation with Mayer & Cie. was to develop a cost-effective energy-saving needle. After considering various variants, the common choice of Mayer & Cie. and Groz-Beckert was the LCmax™ knitting machine needle with innovative, wave-shaped shank geometry. The first prototypes were extensively tested on laboratory machines at Groz-Beckert's TEZ.

The wave-shaped shank of the LCmax™ needle ensures a smaller contact area of the needle in the needle trick. This results in less friction, which reduces machine temperature and enables energy savings of up to 20 percent compared to a standard needle. This saves costs and at the same time allows operation of the machine at the maximum possible speed.

In both projects, the cooperation between Mayer & Cie. and Groz-Beckert went far beyond mere product development. In addition to Applications Engineering and Construction, the companies' Sales and Purchasing departments were also involved in a close exchange.

Re:NewCell AB (publ) has created a patented process for 100% textile-to-textile recycling and has invested over SEK 1,300 million to establish an innovative and efficient textile recycling plant. The industrial scale plant in Ortviken currently has a capacity to produce up to 60,000 tonnes on an annual basis.

As communicated on 12 October, the Company has experienced lower than anticipated sales volumes to fiber producers in the third quarter and as communicated on 1 November and 7 November, the Company had low sales volumes in October. In addition, sales volumes in November are now expected to be lower than previously anticipated and in line with October sales volume. Discussions are ongoing with a number of customers to secure orders, but it is uncertain when they will materialise.

Therefore, Re:NewCell hereby announces that its Board of Directors has decided to immediately initiate a strategic review to explore and evaluate various funding alternatives. As part of this process, the Board of Directors will consider all potential alternatives to secure funding and optimise shareholder value. Such alternatives may include additional debt funding, equity injection through the form of a rights issue, equity injection through a directed issue targeted to a financial or strategic investor or other possible strategic transactions.
The Board of Directors has retained ABG Sundal Collier as financial advisor to assist in its review of alternatives. Vinge has been appointed as legal advisor in connection with the review process.

The Board of Directors has not set a timetable for completion of its review, but the process will be initiated immediately. Subject to compliance with its ongoing disclosure obligations pursuant to applicable laws and regulations, Re:NewCell undertakes no obligation to make any further announcements regarding the strategic review until a final decision is made by the Company’s Board of Directors.

From 6 – 8 March 2024, the Spring Edition of Intertextile Shanghai Home Textiles will make its  return to the National Exhibition and Convention Center in Shanghai. Showcasing home textile products, encompassing everything from floor to ceiling, exhibitors will be prepared to capture buyers’ attention during China’s traditional peak sourcing season. Suppliers can further benefit from a wider visitor scope, with many buyers crossing over from the co-located fairs Intertextile Shanghai Apparel Fabrics – Spring Edition, Yarn Expo Spring, CHIC, and PH Value. The comprehensive textile platform provides key opportunities for industry players to connect and explore new possibilities.
 
While the growth rate of the global economy remains slow, the domestic market in China has shown promising figures after the Chinese government implemented measures to encourage household consumption. These include providing support to both the home industry and consumers, to develop sustainable, intelligent and healthy living environments. Loan procedures for home refurnishing and funding for related industry sectors have also been optimised. Against this backdrop, for the first eight months of 2023, China Customs recorded a 7% year-on-year increase in consumables retail sales, reaching a total of RMB 3 billion (around USD 410 million). Homing in on the textile sector, profitability is regaining momentum, driven by both the local market and the success of international trade agreements such as Regional Comprehensive Economic Partnership (RCEP).

Across three days, the 2023 spring edition attracted 26,538 trade visitors and 283 exhibitors from five countries and regions. The upcoming fair in March will showcase a full range of home textiles to meet buyers’ needs, including bedding & towelling, rugs, table & kitchen linen, home textile technologies, textile design, and many more. Exhibitors, meanwhile, are set to benefit from the concurrent textile fairs, with the apparel fabrics, yarns and fibres on offer to attract additional segments of the textile value chain, and facilitate sourcing on a wider scale.

Developments:

• Currency-neutral revenues up 1% driven by growth in all regions except North America
• Top-line development reflects focus on conservative sell-in and full-price business
• Gross margin up 0.2pp to 49.3% driven by reduced freight costs, a more favorable business mix, and lower inventory allowances; discounting levels continue to improve  
• Operating profit of € 409 million includes extraordinary expenses of around € 110 million
• Conservative sell-in strategy paying off as inventory position improves substantially versus Q2 level to € 4.8 billion; now down 23% year-over-year

Outlook
adidas expects revenues to decline at a low-single-digit rate
On October 17, adidas had adjusted its full year financial guidance to reflect both the positive impact of the second drop of some of its Yeezy inventory and the better-than-expected development of the underlying business. At the same time, macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in North America and Europe as well as uncertainty around the recovery in Greater China continue to exist. In addition, the company’s revenue development will continue to be impacted by the initiatives to significantly reduce high inventory levels in North America and the company’s focus on full-price sales across its own channels. As a result, adidas now expects currency-neutral revenues to decline at a low-single-digit rate in 2023 (previously: decline at a mid-single-digit rate).

Underlying operating profit anticipated to reach a level of around € 100 million
The company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is now anticipated to reach a level of around € 100 million in 2023 (previously: around break-even level). Including the positive impact from the two Yeezy drops in Q2 and Q3 of around € 300 million (previously: € 150 million), the potential write-off of the remaining Yeezy inventory of now around € 300 million (previously: € 400 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), adidas now expects a reported operating loss of around € 100 million in 2023 (previously: loss of € 450 million).

Mahlo GmbH + Co. KG will present its systems and solutions for efficient and high-quality textile production and finishing together with Shanghai Kuantex at ITMA Asia (November 19 and 23). The focus will be on the machine manufacturer's new straightening concept, the Orthopac RXVMC.

"In the new straightening concept, special attention was paid to the straightening mechanics and their interaction with the analysis electronics of the probe system," explains Sales Manager Thomas Höpfl. The control concept is also new. A probe group at the leveler infeed detects distortions even before they reach the correction rolls. In this way, the rolls are brought directly into position and the fabric is corrected from the very first centimeter. A scanner group at the outfeed also detects possible residual distortion, which is corrected at the second straightening module. This enables an even more precise and faster response when it comes to reacting to rapidly changing distortions. The Orthopac RXVMC therefore shows its full strength when straightening knitwear and fabrics sensitive to distortion.

Also contributing to high-quality textile production and finishing is the Famacont PMC for controlling weft and stitch course density, which will also be on show at ITMA Asia. The Famacont PMC-15 uses a sensor to measure the yarn or stitch density and compares it with the target value stored in the recipe data management system. The detected deviation of the yarn density from the target value is used to fully automatically regulate the leading during the needling process on the stenter frame. Interested parties can have the mode of operation explained to them at the Mahlo booth with the help of a demo tower and their own or provided fabric samples.

Another major topic remains Industry 4.0, because the best measured data is of no use if it cannot be utilized. Mahlo has continuously developed its digital environment mSmart. "Our systems generate data that the customer can use immediately to regulate goods on-line. At the same time, all measured values are backed up in our data management system mLog enhanced and can be retrieved at any time. With this historical data, processes can be optimized and weak points in the process can be minimized," explains Sales Manager Thomas Höpfl.

Heberlein, founded in 1835, successfully completed the sale of its business on 31^st of October 2023. The new joint ownership comprises the company’s management, alongside industry expert Daniel Lippuner
and the Renaissance investment foundation. From November 1, 2023, the company will operate under the name "Heberlein Technology AG".

The owners are committed to investing in the long-term success of a business that already combines traditional values with innovative power. The brand is known for its high level of expertise, as well as its tailor-made solutions for the textile business. As the world's leading supplier of jets for synthetic yarns, Heberlein develops, produces, and distributes key components for the man-made fibre industry. Around 80 employees and an efficient infrastructure in Wattwil, Switzerland, ensure that international customers can continue to rely on quality and reliability.

The Renaissance investment foundation was established by pension funds, for pension funds, and has been investing in unlisted Swiss SMEs for over 20 years.

Under the new ownership, the Heberlein business will continue unchanged at the current location in Wattwil with the current management and all current employees. The board of directors and management of Heberlein AG welcome this solution and are convinced that the existence of the company and its traditions will now be secured in the long term and that it will continue to develop successfully – positive news also for the business location of Toggenburg and the canton of St. Gallen.

Martin Zuercher, CEO of Heberlein, says of the transaction: "With this sale, we are opening a new, positive chapter in the company's long history. With the Renaissance investment foundation, we found an owner who is focused on long-term success. Together with the energetic management team, I look forward to continuing to make a significant contribution to Heberlein's success in the future."

• Revenue of EUR 1.87 bn and EBITDA of EUR 219.1 mn in the first three quarters of 2023
• Positive free cash flow of EUR 27.3 mn in the third quarter
• Implementation of performance program focusing on positive free cash flow, strengthened sales and margin growth and sustainable cost excellence
• Modernization and conversion of Indonesian site successfully completed – EU Ecolabel received

The anticipated recovery in markets relevant for the Lenzing Group has to date failed to materialize. The continued sharp increase in raw material and energy costs on the one hand and very subdued demand on the other had a negative impact on Lenzing’s business trends as well as on industry as a whole during the reporting period.

Revenue in the first three quarters of 2023 decreased by 5.3 percent year-on-year to EUR 1.87 bn. This reduction was primarily due to lower fiber revenues, while pulp revenues were up. The earnings trend was mainly influenced by the market environment. As a consequence, earnings before interest, tax, depreciation and amortization (EBITDA) in the reporting period decreased by 16.7 percent year-on-year to EUR 219.1 mn. The net result after tax amounted to minus EUR 96.7 mn (compared with EUR 74.9 mn in the first three quarters of 2022), while earnings per share amounted to minus EUR 4.90 (compared with EUR 2.16 in the first three quarters of 2022).

Outlook
According to the IMF, a full return of the global economy to pre-pandemic growth rates appears increasingly out of reach in the coming quarters. In addition to the consequences of the pandemic and the ongoing war in Ukraine, growth is also being influenced by restrictive monetary policy and extreme weather events. The consequences of the renewed military confrontation in the Middle East are not yet foreseeable. Overall, the IMF warns of greater risks to global financial stability, and expects the growth rate to decrease to 3 percent this year and to 2.9 percent next year.

The currency environment is expected to remain volatile in the regions of relevance to Lenzing.

The general market environment is continuing to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing.

In the trend-setting market for cotton, the current 2023/24 crop season is emerging as a further 1.7 mn tonnes of inventory build-up, following 1.8 mn tonnes of inventory build-up in the previous season.

Earnings visibility remains severely limited overall.

Lenzing is fully on track with the implementation of the reorganization and cost reduction program and on this basis is implementing a comprehensive performance program focused on positive free cash flow, strengthened sales and margin growth as well as sustainable cost excellence. The overarching goal is to position Lenzing even more strongly and to further increase its crisis resilience.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the trans-formation from a linear to a circular economy model.

The successful implementation of the key projects in Thailand and Brazil as well as the investment projects in China and Indonesia will further strengthen Lenzing’s positioning in this respect.

Taking the aforementioned factors into consideration, the Lenzing Group continues to expect that EBITDA for the 2023 financial year will lie in a range between EUR 270 mn and EUR 330 mn.

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.