From the Sector

EFI™ Reggiani, the industrial textile printing business of printing technology company Electronics For Imaging, Inc. (EFI), has broken ground on a new textile campus to accommodate ongoing growth. The new 20,000-square-metre campus in Comun Nuovo, Bergamo, Italy, is expected to be completed midyear in 2023.

Sustainability and employee well-being at the centre
The new facility was designed with environmental sustainability and employee well-being in mind. That focus includes plans to install 400 kilowatts of solar panels supplying 60% of the facility’s total energy requirements. Moreover, the building will benefit from superior thermal insulation that will ensure a reduction in heating and cooling costs. Numerous skylights in the facility will provide better natural lighting and a reduction in artificial lighting usage.
 
Green space on the campus was a priority in the design process, covering an estimated 20% of the total area. For a more welcoming work environment, the campus will also feature a canteen and gymnasium for employee use.
 
A 3,000-square-metre demo centre in the new facility will be nearly twice as large as the current EFI Reggiani demo centre in Grassobbio, Italy, offering a high-end, high-tech showcase for state-of-the-art EFI Reggiani printers, as well as Mezzera pre- and post-treatment and Jaeggli yarn treatment products. The demo centre will also feature EFI Reggiani’s recently acquired portfolio of Inèdit raster image processing (RIP) and workflow software solutions.
 
Transforming the textile industry through innovation in green
Since the launch of its first analogue printer, to its newest digital solutions, EFI Reggiani has at its core a heritage and expertise that have contributed to the transformation of the textile industry worldwide. With its total commitment to providing “Innovation in Green,” EFI Reggiani’s leadership is the result of extensive research targeted at improving productivity, quality and sustainability in its customers’ operations. The company is focused on optimising the textile manufacturing process – and reducing energy use, water consumption and overall environmental impact – to ensure customers’ business growth and profitability.
 
Over the years, EFI Reggiani’s product portfolio has continued to expand, ranging from rotary and flatbed printing machines, to scanning/multi-pass digital printers, to fast digital textile printers.

• 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.

International technology group ANDRITZ will be presenting its nonwovens production solutions at CINTE 2022 in Shanghai, China – one of the main trade fairs for technical textile and nonwoven products in Asia. ANDRITZ will show its product portfolio covering state-of-the-art nonwovens and textile production technologies such as air-through bonding, airlay, needlepunch, spunlace, spunbond, wetlaid/WetlaceTM, converting, textile finishing, recycling, and natural fiber processing.

ANDRITZ supports nonwovens producers in the move to sustainability with the aim of reducing or eliminating plastic components while maintaining the high quality of the desired product properties. This applies to all types of sustainable wipes, such as flushable, biodegradable, bio-sourced, carded pulp or standard carded wipes. The latest development in this field is the ANDRITZ neXline wetlace CP line, which integrates the carded-pulp (CP) process. This is a fully engineered production line combining the benefits of drylaid and wetlaid technologies to produce a new generation of biodegradable wipes.

The neXline wetlaid aXcess targets smaller and medium production volumes and has been devised for new and existing lines. The line is easy and fast to ship due to the compact design, which also fits perfectly into containers. An operator-friendly configuration and versatile design ensure efficient production at affordable investment costs.

The aXcess range was specially developed at ANDRITZ (China) Ltd. Wuxi Branch to handle medium capacities. The facility in Wuxi has an experienced platform for production and service specially geared to serve the Asian nonwovens industry. With the aXcess range, ANDRITZ has developed a hybrid line combining European and Chinese machines, which is the ideal combination to obtain the best added value from each component in the line and be very flexible to accommodate different business cases.

• Sustainability Report 2021 combines financial and non-financial performance indicators
• 2011-2021: 60% reduction in greenhouse gas emissions per metric ton produced. 51.7% renewable source energy achieved
• ESG criteria (environmental impact (E), social values (S), organizational governance (G)) determine sustainability strategy

The new RadiciGroup Sustainability Report has been published. With the goal of continuous improvement, the 2021 report has a broader reporting boundary compared to prior years and takes into consideration all the Group companies, including sales and service companies. Over 30 sites located across Asia, North America, South America and Europe have provided their 2021 data on economic, social and environmental performance.

Not only indicators of a financial nature but also measures of environmental impact (E), social values (S) and good organizational governance (G): the latter so-called ESG criteria have become a priority for RadiciGroup, which is preparing for the new European Union non-financial reporting directive in order to contribute to the transition towards a fully sustainable economic system and increase the value of its companies.

On the environmental front, the themes of climate change and decarbonization are RadiciGroup priorities and part of a policy aimed at the uncoupling of growth and resource usage. The Group undertakes to lower emissions from production and choose limited-impact energy sources. This commitment is confirmed by the numbers: in the 2011-2021 period, total emissions per metric ton produced were reduced by 60%, while renewable source energy used by the Group reached 51.7%. Specific investments to decrease environmental impact are ongoing: in 2021, EUR 3.1 million were allocated to introduce best available techniques and improve emissions abatement and energy efficiency.

RadiciGroup promotes professional growth by valuing competence and investment in training: Group training hours once again rose after the pandemic period from 36,000 hours in 2020 to 46,000 hours in 2021. The training method was often a hybrid, taking advantage of aspects experimented with during the pandemic, that is, less traveling and use of facilities in favour of higher groupwide attendance, without the need for participation limits. Fifty-five percent of total training hours was dedicated to health and safety, which has yielded positive results based on the related indicators.

Angelo Radici, president of RadiciGroup: “Today, the United Nations 2030 Agenda for Sustainable Development is our main guideline on sustainability issues. It shows us an ambitious scenario and urges us to confront a multitude of challenges that affect our enterprise from every point of view. We try to be quick to react and tenacious, staying faithful to our roots and our style, but expanding our perspective to become increasingly more competitive and proactive in the businesses we are engaged in. From the viewpoint of achieving less environmental impact in the future, we propose to be an enabler and facilitator for our stakeholders on themes such as the circular economy, where we see ourselves as protagonists in ecodesign and recycling, as well as innovation, which we put at the service of anyone who is processing and using our products, so as to offer real sustainability solutions together.”

• Commitment for a sustainable fashion industry

RadiciGroup participated in the third edition of PHYGITAL SUSTAINABILITY EXPO, which took place on 11 and 12 July in Rome. The event was focused on the ecological transition of fashion and design brands through technological innovation.

During the “narrated fashion show”, at the archaeological site of the Museo Dei Fori Imperiali, two sustainable garments by RadiciGroup were shown: the first completely recyclable ski suit made with recycled nylon and the Yamamay swimsuit made with polyester yarn obtained from recycling of plastic bottles.

Yamamay chose the sustainable polyester yarn Repetable® by RadiciGroup, for its new green beachwear proposal, with the aim of combining beauty and sustainability. Repetable is an innovative polyester yarn obtained through a process of recycling plastic bottles. Compared to virgin polyester, Repetable allows lower CO₂ emissions (-45%), lower water consumption (-90%) and lower energy consumption (-60%), while guaranteeing high performance. The new line “Edit” by Yamamay, which includes the swimsuit made with Repetable, has already been on the market since the end of last May.

The participation of RadiciGroup in the PHYGITAL SUSTAINABILITY EXPO represents further confirmation of the Group commitment to creating a fashion industry that is increasingly respectful of the environment, thanks to the involvement of all the players in the supply chain, which are most sensitive to sustainability.

A €20 million investment has been announced by AkzoNobel to increase and improve production at two of its sites in France. Around 30 new jobs will be created.

A total of €15 million will be spent on the company’s aerospace coatings facility in Pamiers, which was taken over following the Mapaero acquisition in 2019. Production capacity is being boosted by 50%, while the funds will also be used to reduce environmental impact and improve safety processes and working conditions.

The other €5 million will be spent on improving production flexibility at the decorative paints site in Montataire, which is one of the company’s most important manufacturing locations for wall paints in Europe.

The plans for Pamiers include the construction of two extensions, one for storage and one for cleaning and waste treatment. The project will also enable the company to relocate the production of exterior polyurethane paints for aircraft widely used in Europe from its Waukegan plant in the US.

Building work is expected to start by the end of 2023, with the new installations at both locations due to be operational in early 2025.

AkzoNobel employs nearly 1,500 people in France and operates four production facilities, in Montataire (decorative paints), Dourdan (powder coatings), Limoges (adhesive markings) and Pamiers (aerospace coatings).

• Goal: to further reduce the textile value chain’s impact on people and planet      

As the textile industry continues to grapple with evolving regulations, increased consumer and stakeholder pressure to meet sustainability goals, and the lack of verified data, bluesign® has updated its service offerings to help brands, manufacturers and chemical companies to better understand and manage their value chains.

The new initiatives expand Bluesign’s core competencies of reducing impact across the supply chain, providing reliable, third-party verified data, mitigating the use of hazardous chemicals through input stream management and replacing substances with bluesign® APPROVED chemistry (a positive list of chemical products with less impact on people and planet). Bluesign’s high value services are available for all companies willing to reduce the impact of their value chain without compromising on quality.     

Bluesign is extending its System Partnership services and launching DATA SERVICES and IMPACT SERVICES for brands and manufacturers. These tiered service packages provide expanded capabilities that enable brands to actively monitor and manage their supply chain through Bluesign verified impact data, covering the critical measures of water consumption, energy consumption, greenhouse gas emissions, chemical consumption, and waste.

DATA SERVICES allow brands and manufacturers to access data from its unique supply chain and give a snapshot of their impact. Through the IMPACT SERVICE package, companies are provided this data plus a foundational assessment of its overall performance and detailed analysis of its suppliers.

The new IMPACT SERVICE enables manufacturers to present their achievements in impact reduction and their excellence in resource management.  The new tiered packages will allow companies to incrementally implement Bluesign’s services with the ultimate goal of attaining full SYSTEM PARTNERSHIP which includes company-specific action plans. At all service levels, a yearly impact report or dashboard is provided; access to this data enables accurate analysis for decision-making and reporting both internally and externally.

Lectra, whose connected industrial equipment and software facilitate the digital transformation and Industry 4.0 transition of fashion, automotive and furniture companies, announces that it has been named one of the 11 French companies selected for the 2022 edition of Deloitte France’s Best Managed Companies program.
 
Established 30 years ago by Deloitte Canada and launched in France at the end of 2021, this program recognizes excellence in companies that stand out for the quality of their management and their performance, through a rigorous and independent selection process. Companies are assessed on their long-term strategy, talent management, innovation capacity and CSR policy, as well as their governance and financial management. On one hand, these criteria assess the company's distinguishing features and, on the other hand, its capacity to address current and future challenges.
 
Lectra is one of 11 French companies recognized as the Best Managed Companies for 2022. “For this first edition, I am delighted to announce that Lectra is one of the companies to have obtained our Best Managed Companies mark of excellence,” says Eric Forest, Deloitte Private Associate and Head of the Best Managed Companies program. “Throughout the selection process, Lectra shone through with its extensive strategic vision, solid financial and innovative culture, and its ability to decrypt trends in order to adapt its solutions to changes and the needs of its different markets. This enables Lectra to be a strategic partner to guide its customers in their digital transformation.” Thanks to its capacity to develop innovations, be that with equipment, software or services, and its mastery of technologies such as IoT, the cloud, artificial intelligence and big data, Lectra plays a key role in helping fashion, automotive and furniture industry players evolve towards Industry 4.0.
 
“Obtaining the Best Managed Companies mark of excellence is great recognition for all of our teams at Lectra. I would like to thank all Lectra employees for this collective achievement,” says Daniel Harari, Lectra’s Chairman and CEO. “The work we have carried out together has enabled Lectra to become a global technological leader. This recognition inspires us to continue with our commitment to the Industry 4.0 revolution and to the success of our customers.”

The electrolyser producer Enapter has set itself the goal of developing its entire production process to run without negative impacts on the environment. As an important step on this journey, it is building the Enapter Campus production facility, which will be powered entirely from renewable energy produced on-site and in the neighbouring Bioenergiepark. The site in in Saerbeck, North Rhine-Westphalia combines electrolyser production, an R&D building, administration and office space, as well as a cantine over 82,000 square metres. Now the company wants to investigate what other measures can be implemented to achieve its “Life Cycle Impact Zero” aspirations – together with researchers from Fraunhofer UMSICHT, the Wuppertal Institute and the Institute of Sustainable Nutrition (iSuN) of FH Münster.

With the Life Cycle Impact Zero project, started on April 15, 2022, the parties want to develop and apply an especially comprehensive and holistic approach to environmental assessment. This includes chemical manufacturing and electrolyser production, as well as matters like the use of energy and water resources, the generation of waste or the human factor in general. This is intended to cover all interactions between business and people. That includes, in particular, Enapter’s employees, but also people in upstream and downstream value chains, users of the technology or residents close to the production site. A concept for sustainable employee catering is also being developed.

The basis for all environmental assessment that will be carried out is ISO 14040. The recognised international standard divides the research into four phases: Aim and scope of the study, inventory analaysis, impact assessment, as well as interpretation. Sensitivity analyses and scenario techniques are also used as further methods.

On the basis of these analyses, the 18-month project should derive concrete measures to avoid negative environmental impacts completely, if possible, for example in production, employee mobility or in energy supply. Furthermore, it will examine whether these measures are transferable to Enapter’s other locations – such as in Italy. Following on from the project, the steps defined should be implemented by Enapter in the next phase. In the subsequent Phase 3, a renewed analysis is planned. This will determine if the technological innovations achieved by then in the production and use of Enapter’s electrolysers can enable additional ecological improvements.

The Life Cycle Impact Zero project is supported by the State of NRW.

ROICA™ strengthens its presence in the apparel segment thanks to its established network of partners, who will present their latest innovations at the upcoming Première Vision.

ROICA™ partners are the “artists” and “heartists” of premium stretch in fabrics: because they have at heart all the values for which ROICA™ stands for. These partners presenting at Première Vision are:

• Iluna Group, whose journey into the new dimension of responsibility continues with developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in looks, performance and hands. Brand new for this edition of Première Vision is the inclusion of GOTS-certified organic cotton in GRS-certified galloons and allover lace containing ROICA™ EF, so as to meet market demands for natural comfort in the underwear sphere.
• Innova Fabrics, which recently enhanced its smart offering by launching the RF (Residual Free) line, with the goal of reducing the impact of microplastics derived from the fashion industry. This is made possible by mixing two responsible ingredients, SENSIL® BioCare by Nilit and ROICA™ V550 by Asahi Kasei, which give birth to both sporty and casual fabrics.
• Inplet, which enriched its production of smart elastic and rigid knitted fabrics with three new products: a powernet fabric in 77% polyamide RECO and 23% ROICA™ EF with good recovery; a net fabric in 55% polyamide RECO and 45% ROICA™ EF characterized by a soft hand and good elasticity; and a 79% polyamide and 21% ROICA™ V550 good power, good recovery and a soft touch.
• Penn Textile Solutions/Penn Italia, whose highlights of the new collection are on one side fabrics developed with the use of Neride eco yarns by Nurel with ROICA™ V550, characterized by restraining lace effect, soft touch and breathable, in combination with tulle as a sustainable basic, and on the other side charmeuses with soft hand, raw cut in combination with a band fabric from the dreamshape family with reinforced gripping edge, made again in Neride eco yarns by Nurel with ROICA™ V550
• Tessitura Colombo Antonio, which in its new A/W 23-24 collection expands its proposal of regenerated lace from the ECO-LACE line: new designs inspired by fashion trends using ROICA™ EF. Also, in its BIODEGRADABLE line it uses ROICA™ V550 for the realization of new designs. The new MICROMODAL line uses ROICA™ V550; the effect of this lace range is softness, elegance and relief effect.