From the Sector

The corona pandemic has a significant impact on the global economy and thus also on the global automotive industry. The temporary plant closures at almost all customers in all regions will result in a revenue decline at Autoneum in the current year, the extent of which cannot yet be estimated.

In addition to the ongoing cost-saving programs, Autoneum has therefore decided on a comprehensive set of measures to further increase the flexibility of personnel and material expenses. This includes staff adjustments, e.g. by reducing the number of temporary employees in plants. In addition, short-time work at the Swiss sites, the Group’s headquarters in Winterthur and at the Sevelen plant (canton of Sankt Gallen), as well as short-time work in some other European countries and temporary closures of production facilities in various regions in line with those of customers are being implemented. With these measures, Autoneum is at the same time making its contribution to protecting the workforce, breaking chains of infection and containing the spread of this pandemic.

Despite the above-mentioned countermeasures and in light of the advancing spread of the coronavirus, Autoneum does not expect to achieve its targets for the business year 2020. Due to the considerable uncertainties regarding the course and duration of the pandemic, no updated outlook is provided for 2020 for the time being.

Net result impacted by operating losses and high impairments in North America

In 2019, Autoneum grew organically by 2.5% and has thereby significantly outperformed the declining market. In Swiss francs, revenue rose slightly to CHF 2 297.4 million. However, as previously communicated, operational inefficiencies in North America and impairments on fixed assets in that region had a particularly strong impact on profitability and led to a net loss of CHF –77.7 million. The Board of Directors therefore proposes that no dividend bedistributed for the 2019 financial year. Based on the new turnaround program launched in North America at the beginning of this year, significant profitability increases are expected for 2020.

2019 was an extremely challenging year for the automobile industry. The continuing weakness of the global economy, ongoing trade disputes and the increasing regulation of mobility impacted vehicle demand negatively. But 2019 was also a year of change for Autoneum internally. An in-depth analysis carried out by the new Group Management in the fall showed a need to reevaluate the Group’s performance over the short- to medium-term. In Business Group North America, the operational and commercial problems have proven more extensive than originally assumed. As a result, the turnaround program launched in spring 2019 was replaced at the beginning of 2020 with a dedicated and far more comprehensive program for the North American sites.

Revenue growth despite a shrinking global market
As a result of weak demand, the number of light vehicles produced worldwide fell again sharply in 2019 compared to the previous year; whereby the decline of almost –6% was much steeper than in 2018. Thanks to numerous production ramp-ups and a favorable model portfolio, Autoneum generated organic revenue growth1 of 2.5%, despite the global market cooling. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Profitability2 impacted by operational inefficiencies and impairments
Operational inefficiencies in North America and impairments on fixed assets in this region were the main reason for the – first-ever – negative net result in 2019. In addition, the sharp drop in automobile production in Europe and China as well as associated lower utilization of production capacities in the affected Business Groups also burdened the Group’s profitability. EBITDA excluding IFRS 16 effects decreased to CHF 126.0 million (2018: CHF 197.2 million), which corresponds to an EBITDA margin of 5.5% (2018: 8.6%). One-time charges from impairments in the amount of CHF –68.0 million had a negative impact on EBIT, reducing it to CHF –32.9 million (2018: CHF 114.1 million). Without these one-time charges, EBIT amounted to CHF 35.0 million. The EBIT margin 1 Change in revenue in local currencies, adjusted for hyperinflation. 2 The figures for the 2019 financial year include IFRS 16 effects. Autoneum Management Ltd . Media Release . March 4, 2020 Page 2/5 excluding impairments was at 1.5% in 2019, and taking those into account the margin decreased to –1.4% (2018: 5.0%).

Lenzing expands its Management Board, naming a new CTO and an additional Management Board member for “Pulp and Wood Raw Materials”

The Supervisory Board of Lenzing AG, the world’s leading producer of botanic cellulose fibers, has appointed two new members to the company’s Management Board. Stephan Sielaff will serve as the new Chief Technology Officer effective March 1, 2020, succeeding Heiko Arnold, who left the Lenzing Group in November 2019. At the same time, Lenzing’s highest management body led by Chairman Stefan Doboczky will be expanded to include a newly created Management Board position for “Pulp and Wood Raw Materials” and will thus consist of five members instead of four. Christian Skilich will assume the position of Member of the Management Board for Pulp and Wood Raw Materials as at June 1, 2020.

“In the coming years our focus will be on achieving the strategic target of strongly increasing our own supply of pulp in line with our corporate strategy sCore TEN. By creating this new division, the composition of the Management Board now also reflects this focus”, says Peter Edelmann, Chairman of the Supervisory Board of Lenzing AG.

Stephan Sielaff is a chemical engineer who gained experience in the chemical industry in the years 1993 to 2014, holding various management positions for Unilever and Symrise. Since 2014, he has worked for the Swiss specialty chemicals company Archroma, an important supplier of the textile and paper industry, as a Member of the Board of Directors and Chief Operating Officer (COO).He has been responsible for forming the integrated operational structure and the strategic development of the company.

Christian Skilich, who will assume management responsibility for the new Pulp and Wood Raw Materials Division in the Lenzing Group, boasts outstanding expertise in the field of paper and pulp technology. With a Master of Science in Paper Technology and Engineering & Economics, he first held various positions in the paper, packaging and glass industries. Since 2004, he has worked in a broad range of management areas on behalf of the internationally operating Mondi Group. Christian Skilich most recently served as Chief Operating Officer on Mondi’s Board of Directors, overseeing projects in the USA and Europe.

Ascend Performance Materials, the largest fully integrated producer of polyamide 66 resin, announced today it signed an agreement to purchase Poliblend and Esseti Plast GD from D’Ottavio Group. The acquisition includes a manufacturing facility in Mozzate, Italy, the masterbatch portfolio of Esseti Plast GD and the engineering plastics portfolio of Poliblend, which consists of virgin and recycled grades of PA66, PA6, PBT and POM.

Poliblend offers compounding and masterbatch services, including color and additive concentrates that enhance the appeal and end-use performance of plastics products, packaging and fibers. Its certifications include ISO 9001, ISO 14001 and ISO TS 16949.

Giancarlo D’Ottavio, Poliblend’s president, will continue to run Poliblend’s operations and join Ascend’s European management team. Terms of the transaction were not disclosed. The acquisition is expected to close in the second quarter.

In the latest technology innovation from members of TMAS (the Swedish textile machinery association), ACG Kinna and ACG Nyström have teamed up with Juki Corporation – the world’s leading sewing machine manufacturer – in the development of a new automated line concept that can considerably speed up the production of finished filter bags.

Woven or nonwoven filter bags employed in a wide range of industrial processes may be under the radar as products, but they represent a pretty significant percentage of technical textiles production.

According to a recent report from BCC research, a leading US analyst covering this sector, industrial filtration represented a $555 million market in 2019 and some of the key areas where such filter bags are employed include:

• Metal fabrication, with effective filtration required for manual and automated welding, thermal cutting, blasting and machining, especially for coolant filtration.
• The process and energy industries, including foundries, smelters, incinerators, asphalt works and energy production plants.
• Other key manufacturing fields – often where dust is generated – including the production of timber, textiles, composites, waste handling and minerals, in addition to chemicals, food production, pharmaceuticals, electronics and agriculture.

Line integration
The new SFL-2000 line is the result of a four-year development project between Juki Central Europe, headquartered in Poland, and the two ACG companies.

It is capable of handling a wide range of different filter media, and as an all-in-one solution, can produce high quality and accurate seams to pre-defined parameters, with optional modules allowing for customised constructions.

Neuer Hybriddrucker der Einstiegsklasse eignet sich sowohl für den Textildirektdruck als auch für den Sublimationstransferdruck und eröffnet somit kleineren Druckdienstleistern potenziell neue Märkte

Wie Mimaki Europe bekannt gab, wird der neue digitale Textil-Hybriddrucker Tx300P-1800 MkII eine der Hauptattraktionen an seinem Stand (7-C20) bei der FESPA 2020 im spanischen Madrid (24. - 27. März) sein. Dank eines einzigartigen, auf Vielseitigkeit ausgelegten Designs ermöglicht der Drucker sowohl Textildirektdruck als auch den Textil-Transferdruck. Mit austauschbaren Auflageflächen und drei verschiedenen Tintenkombinationen bietet er eine bisher unerreichte Flexibilität in einem einzigen System und eröffnet Druckdienstleistern gleichzeitig völlig neue Geschäftsmöglichkeiten.

Bisher war der digitale Textildrucker Tx300P-1800 von Mimaki das Vorzeigemodell hinsichtlich Qualität und Preis-Leistungs-Verhältnis. Der auf diesem Modell aufbauende Mimaki Tx300P-1800 MkII bietet jetzt zusätzlich Sublimationstransferdruck und macht somit den Weg frei für vielzählige neue Materialien und Anwendungen. Die Fähigkeit, vielfältige Anwendungen von Modetextilien bis hin zu Raumtextilien und Tapeten mit einem System bereitzustellen, macht den Drucker zu einer idealen Lösung der Einstiegsklasse. Er bietet sowohl kleineren Druckdienstleistern als auch großen Druckereien alle bekannten Vorteile der Digitaldrucktechnologie, die den in der modernen Textildruckbranche noch immer weit verbreiteten analogen Druckmethoden fehlen. Zu den Vorteilen gehören kostengünstigere Kleinauflagen und kürzere Bearbeitungszeiten, die die Technologie gerade für die Erzeugung von Mustern ideal machen.

Thanks to numerous new ramp-ups and the favorable portfolio of vehicle models supplied, Autoneum grew organically by 2.5% in a declining market. Adjusted for currency effects, Group revenue in Swiss francs amounted to CHF 2 297.4 million, 0.7% higher compared to the previous year.

For the second consecutive year, fewer vehicles were manufactured worldwide in 2019 than in the prior year. In particular, the persistently weak global economy and ongoing trade disputes have had an impact on vehicle demand. With only about 89 million vehicles produced, the market shrank by almost –6% compared to 2018. Despite this negative trend, Autoneum achieved an organic revenue growth of 2.5% through numerous production ramp-ups and a favorable mix of vehicle models supplied. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Revenue growth in North America, Asia and SAMEA region significantly above market The Business Groups North America, Asia and SAMEA (South America, Middle East and Africa) not only outperformed the negative market trend in each case, but also reported higher revenues compared to the previous year. In Europe only, the drop in automobile production caused a decline in revenue of the corresponding Business Group by –5.6% in local currencies. Business Group North America improved its revenue by 7.2% on a currency-adjusted basis, primarily driven by various production ramp-ups of German and Japanese vehicle manufacturers. Despite considerably fewer vehicles being produced in Asia, the Business Group increased its revenue in local currencies by 8.1% thanks to high-volume and new programs of European and Asian automobile manufacturers. Business Group SAMEA continued its growth course. Against the market slump in this region, revenue in local currencies and adjusted for inflation rose by 32.7%. This was mainly due to high-volume export programs in Turkey and South Africa as well as much higher production volumes compared to the previous year in the key SAMEA market of Brazil.

The origins of both Industry 4.0 and an awareness of the need for more sustainable manufacturing methods can arguably be traced back to the year 1971.

It was in 1971 that the first microprocessor was introduced by Intel, and also that the first and perhaps now most well-known environmental campaigner, Greenpeace, was founded.

As such, a direct line can be charted from that year to today’s automated textile manufacturing machinery concepts, as well as the drive to develop more increasingly resource-efficient processes.

All of the recent innovations which have been introduced to the market by A. Monforts Textilmaschinen GmbH & Co. KG, for example, are being powered by the possibilities of Industry 4.0 and developed in response to the market demand for more sustainable production.

They include the new ‘digital twinning’ capability introduced in 2019 for all Monforts machines, with advanced sensor technologies which make it possible to access comprehensive technical machine data from any location using the company’s Smart Support and Smart Check apps. In addition, the digital twin system provides information on individual wear parts, such as, for example, converters or gears.

These latest developments have been very favourably received by Monforts customers, especially in Europe.

50th anniversary
The very first Heimtextil – the leading trade fair for the home textiles market – was also held in Frankfurt in January 1971 and Monforts customers Bierbaum Group and Konrad Hornschuch AG are amongst the German companies who were there from the very start and have attended every annual show since.

Bierbaum Group, based in Borken, is the company behind the well-known Irisette bedding brand and is celebrating its own 125th anniversary in 2020. It has also introduced products bearing the German government’s new Grüner Knopf textile seal of approval for sustainable production.

As a specialist in synthetic leathers for home surfaces, as well as vehicle interiors, Konrad Hornschuch AG, of Weissbach, has been a member of the €44 billion automotive giant Continental AG since 2016.

Representatives from both companies received memorial trophies at a special presentation held on January 7th during the 50th anniversary Heimtextil show.

The home textiles market remains very strong in Germany, with sales amounting to some €9.6 billion in 2019, according to analyst IFH Cologne.

Global growth
The first Heimtextil in 1971 was a significant success, attracting 679 exhibitors from 26 countries.

This year’s show, however, attracted a total of 2,952 exhibitors from 66 countries, reflecting not only the growth of the home textiles industry, but also the globalisation which has taken place over the last half century.

Monforts now has customers for its advanced finishing technologies around the world, with home textile customers from India and Pakistan being particularly well represented at Heimtextil 2020.

Among stand outs from Indian companies at this year’s show was the 2020 collection of Welspun India’s famous Christy England brand, inspired by botanical studies of the gardens of British stately homes. Welspun towels meanwhile benefit from the company’s HygroCotton hollow core yarn technology, produced by a proprietary spinning method which ensures they become softer, fluffier and more absorbent after every wash.

An equally ground-breaking new technology is being introduced by Trident Group, which is one of India’s largest vertically-integrated home textiles manufacturers and two years ago installed five complete Monforts finishing ranges for its new linen department.

Trident’s patented Air Rich yarns feature pores throughout their cross sections for high breathability and absorbency, as well as rapid drying.

Monforts home textile customers from Pakistan stressed the resource efficiency of their processes and products as a result of investments in advanced technology, and during the show the ‘Sustainable Pakistan’ initiative was announced.

Supported by GIZ, the German Society for International Cooperation, the initiative aims to reshape global perceptions of Pakistan’s manufacturers and their innovations. So far, twenty producers have been carefully chosen to be presented on this global platform and will help rebrand Pakistan’s textile industry at the Heimtextil exhibitions going forward.

Heimtextil’s organiser Messe Frankfurt also announced its own new alliance with the United Nations Office for Partnerships, in order to support the UN’s Sustainable Development Goals.

Constancy
Many things have changed since 1971 and home interiors are certainly no longer predominantly orange and brown – and perhaps unlikely to ever become so again.

It’s clear, however, that there has been a constancy in the push to consistently improve textile technologies, processes and products that may have originated in Europe, but have subsequently spread around the world.

And the significance of both microprocessors and sustainability in 2020 could only have been guessed at back in 1971.

Sustainable packaging solutions are a hot topic all over the world. Sappi, market leader in innovative packaging barrier and sealable papers, is already producing such solutions and can point to numerous successful examples. Demand from customers and interested parties from a wide spectrum of industries continues to grow. The world’s leading paper and paperboard manufacturer therefore recently added two new grammages to its Sappi Seal range. In addition to the 67 g/m² version, the new 85 g/m² and 100 g/m² papers enable branded goods manufacturers to package an even more extensive variety of products with this functional paper – either as primary or secondary packaging.

The requirements for packaging papers are becoming increasingly demanding. They need to offer greater functionality, be environmentally friendly, recyclable and provide optimal protection for the packaged products. While many paper manufacturers are still talking about such multi-functional solutions, the innovation leader Sappi has already expanded its portfolio. The 85 g/m² and 100 g/m² grammages are now available in the Sappi Seal product family. Converters and manufacturers of food products, such as sugar, tea and confectionery, as well as non-food items, like children’s toys and DIY products, now have even more possibilities to use this functional paper and move from fossil-based materials to environmentally friendly packaging. The wide range of projects that Sappi has already completed for well-known customers, highlight its relevance for the market.

The Bangladesh international player presents its unique eco-innovation path and a specialhigh-end capsule collection in collaboration with PG DENIM.

GENESIS:M&J Group comes back at the Denim Première Vison London (3-4 December) marking a positive end of the 2019, with new objectives for the future. The leading facility of the Group has affirmed itself as one of the most reliable international garment manufacturer, especially in denim market, and now it is time for another leap forward. The aim is to target more in depth the high fashion denim market in Europe with renowned proposals towards a more authentic, comfortable and sustainable denim offer.

The first output to underline the new approach is the high-end capsule collection realized in collaboration with PG DENIM, that premiered at the show
A collection where the great industrial experience and quality in garment manufacturing of GENESIS meets, in a perfect and inspiring contamination, the 100% Italian artisanal craft and unique interpretation of PG DENIM fabrics. A complete co-branding that has given life to unique garments with dedicated tags and hangtags, to show a fashionable, sustainable and high-quality final output, entirely produced in Bangladesh. The perfect meeting to provide a great example of how this collaborative path with European top-quality player could lead to a new positioning for the company.

The improvements achieved by GENESIS are enhanced also in the s/s 2021 collection with new trends involving eco-conscious fabrics such as organic cotton, recycled fabric and polymer, realizing blends with natural fibers like hemp & linen while working also with a wide variety of biodegradable materials. Technical fibers are also on the spotlight with an increasing importance gained by proofed lightweights such as waterproof. Moods like hyper blue, natural cotton colors, flat bright indigo mid shades or urban grey and reactive layers dominates the feeling of the new collection. In terms of looks and treatments the collection has developed several unique interpretations such as engineered garments, digital laser patterns, wester silhouettes, workwear, soft dyes, contemporary stripes, dirty green cast and eco-acid wash. A kaleidoscopic collection where technology and tradition meet one unique big trend: more sustainable than ever.