From the Sector

The sustainable collaboration and innovation between Indorama Ventures (IVL), Auping and TWE Group presented a certified cradle to cradle process for mattress components across nonwoven applications, at Techtextil, Frankfurt, 21st to 24th June 2022.

Using circular research and design, the industry partnership between IVL Mullagh (Ireland), Auping and TWE Group has resulted in a perpetual, sustainable economic business model, for manufacturers globally. The inclusion of safe raw materials within mattress manufacturing allows the materials to be easily disassembled at the product’s end of use in order to be further reused as same components or recycled into new raw material at the same quality level, to enable versatile textile applications.

Designed for disassembly to optimize the use of existing resources, reduce carbon footprint and support customer objectives all along their customers’ supply chain. This circular industry collaboration begins with design, where the mattress is constructed using only two different base materials, 100% PET polyester textiles and steel wire pocket springs connected with Niaga®️, a non toxic reversible adhesive, making the mattress easy to disassemble and recover.

IVL, Auping and TWE’s shared vision for a better world is demonstrated through their connected and innovative circularity that helps to close the loop. Auping collects, sorts and separates the collected fabrics, which then go to IVL Mullagh for processing, melting and extrusion to form polyester staple fiber. These staple fibers are then converted by TWE Group into nonwovens for use in Auping’s Evolve mattress, a fully circular mattress. Following the end of mattress use, the material recovery process simply starts again.

Auping estimates that annually more than 40 million mattresses are disposed of in Europe alone, the majority of which are incinerated. Their take back system in the Netherlands ensures that when their new mattress is delivered, the old mattress is retrieved and recycled, irrespective of the brand, ensuring existing materials are continually optimized, diverted from landfill and kept in use to achieve a circular economy.

Due to the impact of the war in Ukraine on the automotive industry and vehicle production as well as of rising inflation, Autoneum is adjusting its corporate outlook for the 2022 financial year. The market recovery will be delayed by current developments.

Since the outbreak of war in Ukraine, new bottlenecks in global supply and logistics chains have been impacting vehicle manufacturer production volumes and thus slowing the revenue and earnings development of the automotive supply industry, especially in Europe. Current developments are accompanied by accelerated inflation and significant price increases on the commodities markets, which have been further exacerbated by the war. These are felt at Autoneum through rising material, energy and transport costs. With regard to the rising costs, automotive manufacturers and suppliers are now required to ensure a fair burden sharing as partners.

In addition, renewed coronavirus-related lockdowns in China are delaying growth in Asia. According to the revised market forecasts1), global automobile production is expected to reach 80.4 million units in 2022, which represents an increase of 4.1% compared to 2021. Growth will thus be significantly lower than was still expected in mid-February.

Autoneum will do its utmost to minimize the impact on the Group. Despite the present challenges, the strategy will continue to be consistently implemented with a focus on innovative and sustainable technologies for growing markets of the future.

Based on current developments and knowledge, Autoneum has updated the forecasts that it presented at the Media Conference, which had not yet included the impacts of the war as outlined above. Autoneum continues to expect revenue to develop in line with the market. For the first half of the year, the Company expects an EBIT margin at break-even level. On the basis of the ongoing collaborative discussions with customers to participate in the sharing of the sharply increased energy and material costs, Autoneum anticipates an improvement in the EBIT margin to 2.0 to 3.0% (previously: 4.0 to 5.0%) for the full year 2022. Free cash flow for 2022 is expected to be in the mid to high double-digit million range.

Autoneum is very well positioned for the transformation of the automotive industry towards e-mobility and sustainability. Our product portfolio is suitable for all drive types, whether internal combustion, hybrid or pure electric vehicles. The medium-term forecasts that Autoneum published in November 2021 remain unchanged positive. The timing of the market recovery will be delayed by current events and will also depend on further geopolitical developments.

The German machinery producer BRÜCKNER used exactly these chances and repositioned itself during the pandemic period. For more than 70 years, the family-run company has been specialized in individual finishing concepts for textiles, technical textiles, nonwovens and floor coverings. The current challenges in the textile industry are serious. The clear increase of the energy costs and the general uncertainty of the energy supply as well as political requirements make a profitable textile production more and more demanding for many companies.

The company responds to this with a newly developed stenter concept with double heating system. Depending on availability, the lines can be operated with gas or oil, but also other combinations with steam or renewable energies are possible. This means that production delays and machine downtimes can be avoided as far as possible. In addition, developed intelligent assistance systems for its machines have been developed that support the machine operator in using the best possible process to operate the line as energy-efficiently as possible. Further energy savings are possible with new energy-efficient motors or heat-recovery and exhaust air cleaning systems. This also helps to avoid harmful emissions.

But many textile producers are also focusing on reducing chemicals. For this purpose, BRÜCKNER's further developed ECO-COAT minimum application unit can make a decisive contribution. Knitted and woven fabrics, but also nonwovens can be finished on one or both sides via different fabric paths. With the minimum application via an engraved roller, a single-sided application of up to 100 g/m² can be achieved. A double-sided and higher application quantity is achieved, for example, by impregnation in the nip. Irrespective of the selected fabric path, a very small liquor reservoir means that only minimal quantities of waste water are produced when changing batches or liquors, and the use of chemicals can also be significantly reduced. In addition, less water has to be evaporated in the subsequent drying process than, for example, in the case of impregnation in a water bath, so the energy requirement is significantly reduced.

On the two upcoming trade fairs ITM in Istanbul and TECHTEXTIL in Frankfurt in June, interested customers can personally get an idea of BRÜCKNER's new developments.

• Hexcel Composite Innovations for Aerospace Applications on Display at JEC World 2022: Hall 5, Stand J41

In late 2021, Hexcel announced an agreement with Fairmat, a deep technology startup, to build the capability to recycle carbon fiber prepreg from Hexcel European operations for reuse in composite panels sold into commercial markets, giving a second life to recovered carbon fiber. To do so, Fairmat has developed a virtuous recycling process, and a sample of its newly recycled material will be available to view at JEC World 2022. Hexcel will present an array of product innovations for aerospace and urban air mobility customer applications during JEC World 2022 in Paris on May3-5. These latest innovations demonstrate the company’s leadership in developing advanced composites technology for the aerospace market.

• Sustainability Focus on Recycling and Reuse
• HiTape® and HiMax® Reinforcements for OoA Processing
• Innovative HiFlow™ Resins for Continuous and Shorter Cycle Injection Processes
• HexPly® Prepregs for Primary Structure and Engine Applications
• HexTow® High Modulus Fibers HM63 and HM54
• Thermoplastics and Processing Innovations for Primary and Secondary Structures
• Lightweight PrimeTex® Reinforcements Solutions for Urban Air Mobility (UAM)

• Low impact of Ukraine war on business performance in 1st quarter
• 12.2% increase in sales to €270.9 million based on growth in all four business units
• Adjusted EBITDA improves by 11.5% to €36.8 million

SGL Carbon generated consolidated sales of €270.9 million in Q1 2022 (Q1 2021: €241.5 million). This corresponds to an increase of €29.4 million or 12.2% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to €36.8 million in the reporting period.

Sales development
In the first three months of fiscal 2022, the sales increase of €29.4 million was driven by all four operating business units: Graphite Solutions (+€11.3 million), Carbon Fibers (+€6.6 million), Composite Solutions (+€7.2 million) and Process Technology (+€6.0 million).
In particular, sales to customers in the automotive and semiconductor industries and a significant recovery in the industrial applications segment were key factors in the increase in sales. Sales of the Process Technology business unit to customers in the chemical industry also developed pleasingly. The effects of the war in Ukraine, which has been ongoing since the end of February 2022, had only a little impact on SGL Carbon's sales performance in the 1st quarter.

Earnings development
Despite the increasingly difficult market environment in the course of Q1 2022, associated with temporary supply and production bottlenecks at their customers, temporarily interrupted transport routes, and significantly higher energy prices, SGL Carbon was able to keep the adjusted EBITDA margin almost stable year-on-year at 13.6%.  
Adjusted EBITDA increased by 11.5% to €36.8 million in the reporting period. Higher capacity utilization in the business units and product mix effects contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation. By contrast, higher raw material, energy and logistics costs as of end of February 2022 had a negative impact on earnings. The Carbon Fibers business unit was particularly affected by the energy price increases. One-time expenses of €9.2 million in conjunction with energy transactions burdened the Carbon Fibers business unit in the 1st quarter of 2022.  
To secure our production and delivery capabilities, around 85% of the energy requirements of the entire SGL Carbon for 2022 are price-hedged.
Adjusted EBITDA and EBIT do not include in total positive one-time effects and special items of €8.5 million, among other things from the termination of a heritable building right to a site no longer in use. Taking into account the one-time effects and special items presented as well as depreciation and amortization of €14.1 million, reported EBIT increased by 83.5% to €31.2 million (Q1 2021: €17.0 million). The net profit for the period developed correspondingly and more than tripled from €6.1 million to €21.4 million in a quarter-on-quarter comparison.

Outlook
The sales and earnings figures for the 1st quarter 2022 confirm the stable demand from different market segments. Price increases and volatility in the availability of raw materials, transportation services and energy were largely offset by savings from the transformation program and pricing initiatives at the customers.
For 2022, SGL Carbon continues to expect volatile raw material and energy prices, which were included in their forecast for 2022 at the time of planning. However, there are uncertainties about the extent and duration to which SGL Carbon and the customers will be affected by the impact of the war in Ukraine or temporary supply chain disruptions due to the lockdowns in China. Therefore, SGL Carbon's outlook for fiscal 2022 does not include supply and/or production interruptions at customers or the impact of a possible energy embargo that cannot be estimated at this time.  
SGL Carbon's forecast also implies that factor cost increases can be at least partially passed on to the customers through pricing initiatives. SGL Carbon has also included the revenue and earnings impact from the expiry of a supply contract with a major automobile manufacturer at the end of June 2022 in our forecast.

ITM 2022: Rieter Further Improves Attractiveness of Ring and Compact-Spinning System

• Autoconer X6 is the key machine for highest efficiency
• Roving frame F 40 sets industry standard at 90 seconds only for doffing
• New top and bottom aprons NO-79201 offer greater durability
• i-Bearing enables 24/7 visibility for fast and smart decisions
• Berkolizer pro introduces easily adjustable UV treatment as industry-first
• European roll out of precision winder NEO-YW to launch in Turkey

Rieter is presenting the Autoconer X6 at the upcoming ITM 2022 in Istanbul (Turkey), taking place from June 14 to June 18, 2022, which further improves the attractiveness of the company’s ring and compact-spinning offering by completing the system. In addition, Rieter is showing the roving frame F 40 which doffs at 90 seconds only. SSM’s NEO-YW precision winder is launching into the European market while three key innovations in components are being introduced.

Opportunities and Challenges to the Spinning Industry

2021 was an unprecedented year for the global spinning industry. Driven by the market recovery after the pandemic and the regional shift of the industry, customers invested in new spinning systems at levels never experienced before. And despite the current uncertainties, customers continue to invest.

As market and technology leader, Rieter succeeded in this environment in posting a record order intake for 2021. This is clear evidence of the high level of trust customers have in Rieter. Dr. Norbert Klapper, CEO of Rieter, says: “Systems, machines, components, parts and services from Rieter have ensured competitiveness and success for customers over many years in the past and will continue to do so in the future.”

Dr. Klapper also comments on the challenges that lie ahead for the industry as it takes advantage of market opportunities: “The pandemic is not over yet, and business is exposed to dramatic cost increases as well as shortages in material supplies and logistics. In difficult times, it is important to work together even more closely than under normal circumstances. It’s all about true partnership and trust – the basis of Rieter’s business for 226 years.”

DFND, a compression and apparel brand designed for the military, firefighters, first responders and pro athletes, now available to athletes everywhere, has partnered with Hologenix®, creators of CELLIANT® to introduce a line of unisex sleepwear: DFND REST. Designed for the “warrior athlete,” the sleepwear is powered by DFND X CELLIANT®, the trailblazer in bio-responsive infrared textiles.
 
Both DFND and Hologenix are focused on increasing recovery and enhancing performance for the human body, so the partnership couldn’t be more ideal. CELLIANT’s science-backed infrared (IR) technology is a natural blend of bioceramics that allows textiles to capture and convert body heat into infrared energy. DFND REST powered by CELLIANT notes that it is “clinically proven to enhance tissue oxygen levels to help your body be at its best.”

DFND REST powered by CELLIANT includes three unisex designs in two colors each, Tan and Heather Grey: IR Short Sleeve V-Neck Shirt; IR Long Sleeve V-Neck Shirt and IR Sleepwear Long John; and two designs in Black: IR Recover RX Hood; IR Recover RX Jogger.

DFND REST, like all DFND products, is designed, tested and made in the USA. CELLIANT’s proprietary mineral formula is processed and manufactured in the USA.

DFND REST will be featured at the following upcoming shows: the Holistic Health and Fitness (H2F) Exposition and Industry Day, April 26 to 27 at Fort Eustis; Warrior West, April 27 to 28 at the San Diego Convention Center; Modern Day Marine, May 10 to 12, Washington, D.C.; The Human Performance & Biosystems Summit, June 29 to 30 at National Harbor, Maryland; National Guard Conference & Exhibition, August 26 to 29, Columbus, Ohio; and AUSA, October 10 to 12, Washington, D.C.

Monforts and its Turkish representative Neotek are looking forward to the forthcoming ITM 22 international textile machinery show taking place from June 14-18 at the Tüyap Fair and Congress Centre in Istanbul, after a three-year break.

With the TwinAir heating chamber system within a Montex stenter, top and bottom airflows can be regulated completely independently of each other, ensuring heat is only applied when and where it is required. The Optiscan balancing system ensures continuous automatic evaluation of the distance between the nozzles and the fabric for highly economical and contact-free drying. The resulting constant evaporation rate within the stenter ensures optimum energy utilisation and also avoids markings on the fabric.

With the latest Montex stenters, overall energy savings of up to 40% can now be achieved compared to a conventional stenter with no heat recovery or energy optimisation measures like high-quality chamber insulation.

The Montex stenter also benefits from full digital control, with the Qualitex 800 PLC control system providing ease of operation and rapid access to line and management data, including full operating cost overviews, as well as maintenance monitoring.

Advances in digital technology mean that there are also now significant gains to be made in the retrofitting of existing Monforts machines with the latest automatic drives and control systems, going far beyond the basic replacement of spare parts.

“We will be emphasising the robustness and versatility of the Montex stenter for essential processes such as drying, stretching, heatsetting and coating at the Istanbul show,” said Monforts Area Sales Manager Thomas Päffgen.

“With energy prices rising steeply everywhere, features such as the MonforClean system, or the EcoBooster, in which waste heat from the drying process is used to pre-heat the drying air, are proving more invaluable than ever,” added Ahmet Kilic of Neotek. “Monforts can provide a range of further resource-saving and energy recovery options tailored to each individual line installation.”

Today, March 30, the European Commission released its long-awaited Strategy for Sustainable Textile, with the ambition to move the sector towards the path of sustainability. EURATEX welcomes the EU ambitions to act on sustainable textiles and investments, in order to change how textiles are made, chosen and recovered, but calls for a smart and realistic implementation. Many European companies have already chosen this path, therefore the strategy should support them in this process, especially considering today’s energy crisis.

The strategy recognises the strategic importance of textiles, which are not only used as apparel or furniture, but applied in cars, medical equipment, agriculture, etc. It acknowledges the European Industry pro-active initiatives to tackle microplastics, to solve challenges of market surveillance and the skills needs. More cooperation is needed for re-use and recycling of textiles and to set up an EU market for secondary raw materials. On this last point, EURATEX ReHubs initiative is developing proposals to size EPR potential, to transform waste into value, and create a new capacity and jobs.

The proposed “transition pathways”, which will translate the strategy into action, will be critical in this respect: how will these sustainability targets be reached, what will the cost for SMEs be, how can companies be supported in that green transition, what about the impact on global competitiveness? These are essential questions to be addressed in the coming months.
The Textile strategy is part of much broader package, including as many as 16 new legislative actions and other policies which will directly impact on textile value chain. In particular the Sustainable Product Initiative Regulation released on March, 30 includes game-changing provisions on Digital Product Passport, Eco-Design, SMEs and Green Public Procurement.  The Regulation has an overwhelming ambition and, to be realistic, it would require a new way of joint working between institutions and business, and which builds on lessons learned on data flow across value chains, interoperability, conformity assessment and effective measures to support SMEs.

If wrongly implemented, such an unprecedented wave may cause a complete collapse of the European textile value chain under the burden of restrictions, requirements, costs and unlevel playing field. On the contrary, the changes ahead can boom the entire textile ecosystem and create a model of successful green and digital transition in manufacturing, which starts in Europe and expands globally.

Already in 2019, EURATEX asked policy makers to work together and remove barriers to circular economy, solve the market surveillance paradox in which laws are made but not checked, and to help create scale economies to make sustainable textiles affordable, hence the norm.

For example, there are 28 billion products circulating per year in EU, which is an impressive task for market surveillance authorities including customs. EURATEX has been stressing non-sufficient market surveillance and it is actively working on solutions for a fair and effective market surveillance of textile products through Reach4Textiles. EURATEX very much welcomes that the European Commission recognizes our work and the need for market surveillance by establishing more harmonised efforts in the EU.

EURATEX also welcomes the establishment of the Digital Product Passport. It has a high potential to improve every step in the textile value chain, from design and manufacturing to recycling and purchasing. At the same time, EURATEX calls the co-legislators to take into account the role of SME’s in this transition and to put forward pragmatic initiatives, supporting SME’s across the EU in a systematic approach.

Alberto Paccanelli, EURATEX President, concludes: EURATEX calls for true cooperation with all policy makers and other stakeholders across the value chains to advise, pressure-test and use this opportunity for a successful transition. Our ambition must be to reconcile sustainability, resilience and competitiveness; we know it can be done”.

Looking back, 2021 was a positive year for the Albstadt-based circular knitting machine and braiding machine manufacturer Mayer & Cie. After two tough years, sales exceeded Euro 100 million again last year, and the outlook for this year is promising, with production working at long-term full capacity in the circular knitting machine sector.

In order to maintain its market edge Mayer & Cie. continues to rely on digitisation of both its processes and its products. Substantial investment at its headquarters location, especially in machinery, is on the Mayer & Cie. agenda for 2022. In the years ahead a range of production machinery – lathes, gear cutting and grinding machines – is to be replaced at a scheduled cost running into low double-digit millions. Last year saw an investment in a robot-controlled laser hardening system for heat-treating machine components. The company passes an energy upgrade milestone these days with launching its new CHP cogeneration units.  
 
“Compared with 2020, our Group sales were up by about 40 per cent in 2021,” said Mayer & Cie. Managing Director Benjamin Mayer. After two difficult years in 2019 and 2020 the circular knitting machine manufacturer was able last year to restore sales to a stable level of about 103 million Euro. And it could have achieved an even better result. “Supply chain problems hampered production perceptibly,” the company’s managing director said. “In view of the order situation up to five per cent more might have been possible.” The Albstadt textile machinery manufacturer’s order position has stayed at a sound, high level since the fourth quarter of 2020, and orders in hand will already keep the circular knitting machine division busy until the end of the year, with orders coming in from all over the world, but especially, and with no change, from the company’s core markets Turkey, China and India.

The Management views with concern, however, the conflict in the Ukraine, which at first glance may not affect the sales market directly but might lead to general purchasing restraint in the capital goods sector that like the trade war between the United States and China, which began in 2018, would also affect Mayer & Cie. In addition, effects of the conflict such as high energy prices and interruptions in material supplies and logistics pose a genuine challenge in the further course of the year.

In the braiding machine division, the order position recovered in 2021. Sales of new machines and, especially, spare parts exceeded the 2020 figures significantly. Mayer & Cie. has once more won an award for its in-house and external digitisation measures as one of the most innovative German SMEs. The textile machinery manufacturer won a 2022 Top 100 award for its innovative processes in particular.