From the Sector

On the 25th of March ROICA™ by Asahi Kasei invited its strategic European partners to the Triennale Design Museum for the first ROICA™ Summit, with the aim of sharing its global strategy and to consolidate relationships that are key to the Asahi Kasei global vision of its fiber and business.

Among the speakers Senior Executive Manager Mr. Shinichiro Haga and its successor Mr. Takehiro Kamiyama, who will take on the new role after more than thirty years in the Asahi Kasei Corporation and more than three years at ROICA™. Together they opened the floor by explaining the ROICA™ business strategy, which is based on three main steps:

1. Continue to speed up ROICA™ responsible innovation  
2. Continue to speed up ROICA™ international partnerships with a strong focus on responsible innovation
3. Continue to push a new generation of communication where its story making will align with an authentic and consumer driven storytelling based on values.

Then, Mr. Shinohe Hiroaki Chief Marketing Officer Europe, introduced the new production strategy at global level  together with  its program of partnerships, plus the marketing and communication programs for the next year and beyond in synergy with Giusy Bettoni at C.L.A.S.S.

“We are extremely pleased to be here with our European partners, thanking them for the continuous valuable cooperations that made ROICA™ so special, and sharing with them which will be our next steps in order to be leading responsible innovation. This is a very precious moment, during which we are able to talk face to face and install long-lasting relationships, with the aim of supporting the apparel industry by making premium stretch becoming a key player for wellbeing values, which are extremely precious for the contemporary consumer. And this will be part of sport, lingerie, hosiery , fashion and swimwear wardrobes thanks to the ROICA™ special new generation of premium stretch innovations” affirms Shinohe Hiroaki.

Hologenix® announces that its newest innovation has achieved two recognitions. In addition to being a Top Ten winner in the Fibers & Insulation Category of ISPO Textrends Fall/Winter 2023/24, pure white CELLIANT has been shortlisted in the Drapers Sustainable Fashion 2022 Awards. The company is sharing the spotlight with recognized brands such as H&M, Sweaty Betty and Timberland. According to Drapers, the leading authority on fashion retailing in the UK since 1887, which sponsors these awards annually, this year they received the most entries ever, making them very competitive.

To create pure white CELLIANT rPET fiber, Hologenix developed a strategic partnership with the Ireland-based Wellman International Limited, a fully owned subsidiary of Indorama Ventures. Indorama Ventures is investing $1.5 billion on sustainability initiatives, allowing them to recycle 50 billion PET bottles globally by 2025 to support the growth of the circular economy. Wellman International has been a pioneer of recycling technologies for almost 50 years, offering specialist solutions for the medical, hygiene, automotive, home care and apparel sectors.  

Pure white CELLIANT rPET fiber is sustainably manufactured, with a low-impact supply chain. It is achieved by embedding bioceramic materials, that are naturally derived and ethically sourced, into fibers, yarns and fabrics. Wellman International has converted 100% of pure white CELLIANT Polyester production into rPET. This conversion to rPET has been implemented across all CELLIANT product categories, replacing traditional polyester and dramatically enhancing CELLIANT’s sustainability initiatives.

Pure white CELLIANT is recognized as a Class 1 medical device in the European Union and is able to carry the CE mark. Like CELLIANT, pure white CELLIANT captures and converts body heat into infrared energy, powering bio-responsive textiles. This energy is reflected back to the body, resulting in increased local circulation and cellular oxygenation. These advantages have a variety of wellness benefits, including stronger performance, faster recovery and better sleep, as well as many functional properties such as thermoregulation, quick-dry properties and odor inhibition.  

Wellman International distributes pure white CELLIANT fibers across Europe, the Middle East, Africa, Asia and the USA.

• 2021 Annual Results: First IFRS consolidated statements integrating the subsidiary Carbiolice
• Plan to build a first industrial facility with a strong financial support from the French Government and the Grand-Est Region: site selected in France in partnership with Indorama Ventures, world leader in the production recycled PET
• Successful commissioning of a demonstration facility in September 2021 and confirmation of the validity of the scale-up of Carbios’ enzymatic recycling technology
• Takeover of Carbiolice and full integration in the consolidated IFRS statements since June 4th, 2021
• Appointment of Philippe Pouletty as Chairman of the Board of Directors on April 1st, 2022
• Appointment of Emmanuel Ladent as CEO of the Company on December 1st, 2021
• Strengthening of Carbios’ financial structure: capital increase of €114 million with French and International investors and €30 million loan from the European Investment Bank (EIB)
• Group’s cash position of €105 million as of December 31, 2021, which does not include the €30 million EIB loan due to be drawn down in the first half of 2022

Carbios, a pioneer in the development of enzymatic solutions dedicated to the end-of-life of plastic, announced its operating and financial results for the year 2021. The financial statements as of December 31, 2021, were approved by the Company’s Board of Directors at their meeting on March 31, 2022.

“In 2021, Carbios achieved several technical and industrial milestones testifying of the soundness and successful execution of our strategy. The excellent results obtained from our demonstration plant confirms the industrial scale-up potential of our biological technology for the recycling of PET plastics and fibers. Together with our Consortium members, we also produced the world’s first food-grade PET sample bottles produced entirely from enzymatically recycled plastics; a world first. In addition, we have strengthened our financial structure by raising a landmark €114 million in May 2021 and we have taken full control of Carbiolice in June. In line with our objectives and with a strong financial support from the French Government and the Grand-Est Region, we will soon enable France to host the world’s first industrial facility dedicated to the biological recycling of plastics. Carbios’ enzymatic process will make it possible to recycle more than 50,000 tons of PET plastic waste per year,” comments Emmanuel Ladent, CEO of Carbios. “Our priority for 2022 is to finalize the terms of our partnership with Indorama Ventures, which will host the world’s first industrial facility operating our biological recycling process at its French production site in Longlaville. This year will also be about optimizing our commercial strategy, while continuing our innovation efforts on the end-of-life of other polymers.”

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• Innovation begins with creativity
• A pioneer of the manmade fiber industry

When the manmade fiber age began a century ago, a German company was responsible for the pioneering work involved. Barmag, established in 1922, was one of the world’s first companies to construct machines for the large-scale production of synthetic staple fibers. To this day, the leading manufacturer of manmade fiber spinning systems and texturing machines in Remscheid – a brand under the aegis of the Swiss Oerlikon Group since 2007 – has shaped technological progress in this sector; in future, with ever more innovations focusing on sustainability and digitalization.

Barmer Maschinenfabrik Aktiengesellschaft (Barmag) is founded in Barmen, located in the Bergische Land region, on March 27, 1922. The German and Dutch founders enter unchartered technological territory, one created as the result of a groundbreaking invention: in 1884, French chemist Count Hilaire Bernigaud de Chardonnet used nitrocellulose to produce the first so-called artificial silk, later known as rayon. The following decades see rapid development focusing on the search for synthetic textile fibers and their manufacturing technologies. As one of the first machine factories, Barmag battles its way through the eventful early years of the manmade fiber industry, the ‘Roaring Twenties’ and the Great Depression – and suffers the extensive destruction of its factories at the end of World War Two. Rebuilding is successful. With the unstoppable success story of purely synthetic plastic fibers such as polyamide, the company flourishes from the 1950s through to the 1970s, establishing sites in all international, for the textile industry at the time important, industrial regions and garnering prestige across the globe in the process. In the ups and downs of expansion, global competition and crises, Barmag reaches the very pinnacle of the market and becomes the preferred technological development partner for the manmade fiber industries in China, India and Turkey. The company has been a high-impact brand under the umbrella of the Oerlikon Group since 2007.

On the wings of innovation
Today, Oerlikon Barmag is a leading supplier of manmade fiber filament spinning systems and part of the Manmade Fibers Solutions business unit of the Oerlikon Polymer Processing Solutions Division. And our aspirations have not diminished: “The striving towards innovation and technological leadership has been, is and will always be part of our DNA”, emphasizes Georg Stausberg, CEO of Oerlikon Polymer Processing Solutions. In the past, this has been observable in such trailblazing innovations as the revolutionary WINGS generation of winders for POY in 2007 and WINGS for FDY in 2012. Currently, the focus of new and further developments is very much on digitalization and sustainability. Here, Oerlikon Barmag has – as one of the world’s first systems manufacturers – been implementing fully-networked smart factories for globally-leading polyester manufacturers since the end of the last decade. Within this context, digital solutions and automation are also helping to provide greater climate and environmental compatibility. This sustainability commitment is not only evidenced by the e-save label introduced for all products back in 2004: Oerlikon is endeavoring to also make all its sites carbon-neutral by 2030 and to acquire its energy exclusively from renewable sources. An ambitious target, whose achievement could be helped by the Oerlikon Barmag anniversary, states Georg Stausberg: “Innovation begins with creativity. And remembering the past provides plenty of motivation and inspiration for the future.”

For the year 2022 SCOTT Racing Team confirms its partners who kept developing and evolving its uniform in the last three years: the knitwear factory Rosti, known for its technical excellence on product and image, the premium stretch fiber ROICA™ by Asahi Kasei, internationally recognized for stretch innovation and responsibility, and Sitip, a company specializing in the production of stretch and circular fabrics that combines tradition and innovation with a choice of sustainable production. A uniform created starting from the athletes' needs to offer them the best solution in terms of style and ergonomics, high performance, easy maintenance, perfect fit and sustainability.

This year, the evolution of research and development has led to the creation of new responsible shorts, made with NATIVE-THUNDERBIKE POWER fabric by Sitip in recycled polyamide and ROICA™ EF yarn by Asahi Kasei. A fabric designed for high-performance sports, particularly suitable for making cycling pants for its maximum coverage and UV protection - thanks to ECLIPSE Sun Protection technology - breathability, comfort and fit. Also the shirt has been produced with Sitip recycled fabrics - NATIVE-BICIMANIA and NATIVE-PIRATA - made with Asahi Kasei's ROICA™ EF* sustainable, stretch and certified recycled yarns. This composition, together with Sitip MICROSENSE Soft Performance technology, made the shirt breathable, offering maximum comfort on the skin.

The three winners of the Paint the Future global startup challenge are all set to accelerate their innovative solutions for the paints and coatings industry. Following an intense three-day bootcamp, these startups were selected by an international jury to continue working with AkzoNobel on sustainable business opportunities.
 
These are the three winners of the Paint the Future global startup challenge:

• SolCold (Israel) - Sustainable self-cooling coating based on anti-Stokes
• Aerones (Latvia) - Robotics for wind turbine maintenance
• SprayVision (Czech Republic) - Data-driven approach to optimal spray application of paint

“Through Paint the Future, we’re bringing innovation and sustainability together as a key driver of our business,” says Thierry Vanlancker, AkzoNobel CEO. “In our ecosystem, we collaborate with startups, suppliers, customers and academia around exciting solutions that will ensure a more sustainable future.”

Paint the Future startup challenges are designed to connect startups with industry knowledge and expertise to help accelerate their solutions in the paints and coatings industry. This Paint the Future global startup challenge launched May 18, 2021, attracting 245 submissions from 62 countries. Ten finalists were invited to Amsterdam to participate in the bootcamp program.
 
This is AkzoNobel’s second global startup challenge, following its industry-first predecessor in 2019. Regional startup challenges have since been held in Brazil (2020), China (2021), and most recently in India (2022).

• Six Carbon Capture and Utilisation technologies for a sustainable chemical and fuel production nominated for the innovation award “Best CO2 Utilisation 2022”
• Conference on CO2-based Fuels and Chemicals 2022 – Cologne (Germany) and online, hybrid conference, 23-24 March 2022

Carbon Capture and Utilisation (CCU) Innovations of the Year 2022: A lot of technologies are in place and in development to face the challenges of a sustainable chemicals and fuels production based on the utilisation of captured CO2 from industrial off-gases or directly from the atmosphere. To honor these, nova-Institute grants its annual award, “Best CO2 Utilisation”, within the framework of the “Conference on CO2-based Fuels and Chemicals” taking place in Cologne on 23-24 March 2022. Great submissions reached the nova-Institute and six nominees now get the chance to demonstrate their full potential to a wide audience in Cologne (Germany) and online.

Here are the six nominees:

• Acies Bio (SI) – OneCarbonBio
• Air Company (US) – Air Eau de Parfum
• Avecom (BE) – Power To Protein
• CleanO2 Carbon Capture Technologies (CA) – CleanO2 Soap
• Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB (DE) – eBioCO2n Technology
• Nordic Electrofuel (NO) – E-Fuel 1

• Order intake of CHF 2 225.7 million at record level
• Sales of CHF 969.2 million despite bottlenecks in the supply chains
• EBIT margin of 4.9% and net profit of 3.3% of sales
• Milestones achieved in strategy implementation
• Dividend of CHF 4.00 per share proposed
• Outlook

The 2021 financial year was characterized by a rapid market recovery. As market and technology leader, Rieter succeeded in this environment in posting a record order intake, significantly increased sales compared with the previous year despite the bottlenecks in the supply chains, and generated an EBIT margin of 4.9%. This success is based on the investments in innovation and competitiveness of Rieter in recent years. Crisis management in the 2020 pandemic year, which aimed at benefiting from the expected market recovery after the pandemic, was also a contributing factor. With the acquisition of three businesses from the Saurer Group, a further milestone in the implementation of the strategy has been achieved. The acquisition strengthens Rieter’s market position by completing the ring and compact-spinning system. With the laying of the foundation stone for the Rieter CAMPUS in September 2021, an important prerequisite for the expansion of the company’s technology leadership has been created.

Order Intake and Sales
At the end of 2021, the company had an order backlog of around CHF 1 840 million (December 31, 2020: around CHF 560 million). Rieter closed the 2021 financial year with sales of CHF 969.2 million, which corresponds to an increase of 69% compared to the previous year (2020: CHF 573.0 million).

EBIT, Net Profit and Free Cash Flow
The profit at the EBIT level in the 2021 financial year was CHF 47.6 million, which represents 4.9% of sales. At the net profit level, a profit of CHF 31.7 million accrued, which corresponds to 3.3% in relation to sales. Free cash flow at CHF 128.1 million is a result of the positive developments in earnings and net working capital. The acquisition of three businesses from the Saurer Group for a purchase price of CHF 321.4 million resulted in net debt of CHF 161.9 million; as of December 31, 2020, net liquidity amounted to CHF 41.3 million. At December 31, 2021, liquid funds amounted to CHF 249.4 million (2020: CHF 283.2 million). The equity ratio as of December 31, 2021, was 27.6% (previous year’s reporting date: 36.4%).

Sales by Region
Sales increased in all regions, with the exception of Africa. The highest growth of CHF 126.0 million compared to CHF 50.8 million in the previous year was achieved in India, followed by North and South America with CHF 149.9 million in 2021 compared to CHF 66.4 million in the previous period, and the Asian countries excluding China, India and Turkey with CHF 318.7 million (2020: CHF 184.8 million). In Turkey, Rieter increased sales to CHF 182.3 million (2020: CHF 122.0 million), in China to CHF 135.3 million (2020: CHF 92.8 million) and in Europe to 43.3 million (2020: CHF 38.4 million). In Africa, sales were below the prior-year level at CHF 13.7 million (2020: CHF 17.8 million).

Business Groups
Despite the well-known challenges in the supply chain, the Business Group Machines & Systems posted an order intake of CHF 1 708.6 million (2020: CHF 363.9 million) and achieved sales of CHF 590.3 million, double the previous year’s figure (2020: CHF 295.8 million). Ring and compact-spinning systems, on whose customer benefits Rieter has worked intensively in recent years, were particularly in demand.
The order intake of the Business Group Components was CHF 296.0 million, 75% above the previous year’s level (2020: CHF 169.1 million). Against the backdrop of successful strategy implementation and good capacity utilization at spinning mills worldwide, sales increased to CHF 231.5 million (2020: CHF 174.3 million). The Business Group After Sales recorded an order intake of CHF 221.1 million, 106% higher than the previous year (2020: CHF 107.2 million). Sales reached a level of CHF 147.4 million (2020: CHF 102.9 million). The positive evolution of the Business Group After Sales was also significantly influenced by successful strategy implementation and good capacity utilization at spinning mills around the world.

Acquisition of three Saurer businesses
Effective from December 1, 2021, Rieter is consolidating the components businesses acquired from Saurer. With the acquisition of Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines), Rieter is strengthening its market position in the components business. The acquisition of the third business from Saurer (automatic winder) completes and thus considerably increases the attractiveness of Rieter’s ring and compact-spinning system. This acquisition marks an important milestone in the implementation of the company’s strategy as an innovative systems supplier. The transaction is expected to be finalized in the first half of 2022.

Rieter CAMPUS
On September 8, 2021, at the Winterthur location, the foundation stone was laid for the Rieter CAMPUS, which includes a customer and technology center as well as an administration building. With the Rieter CAMPUS, the company is creating a state-of-the-art and creative working environment, ensuring access to cutting-edge European technology and enhancing its ability to attract young talent. Thus, the Rieter CAMPUS will make an important contribution to the implementation of the innovation strategy and to the enhancement of the company’s technology leadership position.

Dividend
In view of the profit of CHF 31.7 million at the net profit level in the 2021 financial year, the Board of Directors proposes to the shareholders for 2021 the distribution of a dividend of CHF 4.00 per share. This corresponds to a payout ratio of 57%.

Changes to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding AG appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.

Board of Directors and Annual General Meeting
At the 130th Annual General Meeting held on April 15, 2021, the shareholders approved all motions proposed by the Board of Directors. The Chairman of the Board Bernhard Jucker and the Directors This E. Schneider, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for a further one-year term of office. Stefaan Haspeslagh was newly elected to the Board of Directors for a one-year term of office. This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Changes to the Board of Directors
The two members of the Board of Directors, Luc Tack and Stefaan Haspeslagh, resigned from Rieter’s Board of Directors with effect from August 30, 2021.

Outlook
Rieter anticipates a gradual normalization of the demand for new systems in the coming months. The company expects demand for wear and spare parts to remain at a good level due to high capacity utilization at spinning mills. For the full year 2022, due to the high order backlog and the consolidation of the businesses acquired from Saurer, Rieter anticipates sales of around CHF 1 500 million. Sales in the second half of 2022 are expected to be higher than in the first half of the year. The realization of sales from the order backlog continues to be associated with risks in relation to the well-known bottlenecks in the supply chains, the ongoing pandemic and the geopolitical uncertainties. Despite the price increases already implemented, the rise in global costs poses a risk to the development of profitability.

• Unveil UK’s first-ever sustainable Fashtech Innovation Centre, displaying mass customization capabilities empowering designers, apparel brands, and other creatives

Kornit Digital Ltd. (NASDAQ: KRNT), a worldwide market leader in sustainable, on-demand digital fashionx and textile production technologies and Fashion-Enter - a social enteprise, which strives to be a centre of excellence for sampling, grading, production, and for learning and development of skills within the fashion and textiles industry – today announced a first-of-its-kind Fashtech Innovation Centre in London. Aimed at bringing on-demand fashion and textile mass customization back to the UK, and unveiled on March 3rd and 4th, 2022 at Fashion-Enter's state-of-the-art training and manufacturing site, the Centre is fully supported by Kornit Digital's revolutionary, direct-to-fabric and direct-to-garment digital production solutions.

According to Kornit Digital’s Impact and Environmental, Social and Governance (ESG) report, 30 percent of textile production is overproduction, while 95 percent of water waste is created as companies globally look towards more sustainable futures with customized, creative, and real-time offerings. Using proprietary streamlined, eco-friendly digital production technologies, Kornit Digital is transforming the fashion industry with more efficient and sustainable processes. According to the same report, by 2026, the Company’s systems will use up to 95 percent less water, 94 percent less energy and produce 83 percent less greenhouse gas emissions.

In addition to highlighting production capabilities that minimize carbon footprint, the Fashtech Innovation Centre serves as a prototype for brands and fulfillers seeking to mitigate logistical complexities, time-to-market, and supply chain risks by bringing production nearer to the end consumer. Eliminating overproduction and producing on demand, this nearshoring model drives profitability even in highly regulated and high-cost markets while contributing to local economies and removing transport-related waste.

Serving as a fulfilment site and academy for training production, the Centre includes both Kornit Presto direct-to-fabric and Kornit Atlas MAX direct-to-garment systems, as well as numerous graphic design and workflow tools and systems to enable cut-and-sew operations for a comprehensive “pixel to parcel to doorstep” cycle. Consolidating the process into a single location helps maintain full visibility and control of operations and products. Taking this one step further for creators and brands, visitors can experience the KornitX Global Fulfilment Network, enabling customers to create both new sales channels and accessibility to enable production on demand. Attendees can see how Kornit’s single-step digital production technology empowers unlimited graphic expression using less floor space, resources, waste, and time—all at higher margins.

“This Innovation Centre makes it possible to capture the full, end-to-end production process in one, single location,” said Jenny Holloway, Chief Executive Officer, Fashion-Enter. “The beauty of having print on demand means there are no minimums, so we can make one garment, or we can make up to 30,000 garments a week from all locations at the same fixed cost. Here, we can also train future generations on the right way of producing garments for today, responsive to demand, with minimal waste—ethical and sustainable. This is the future of fashion and textiles.”