From the Sector

According to preliminary figures for H1 2023, SGL Carbon's Group sales increased year-on-year from €549.8 million to €560.5 million, with EBITDApre¹ almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Business Unit Graphite Solutions and the better-than-expected sales and earnings development of the segments Process Technology and Composite Solutions compensated the drop in demand in the Business Unit Carbon Fibers.

Graphite Solutions (GS) increased sales by 15.3% year-on-year to €280.6 million and EBITDApre by 20.6% to €65.1 million. With a 30.9% rise in sales (€64.4 million) and a significant improvement in EBITDApre from €4.1 million to €11.9 million, the business performance of Process Technology (PT) was significantly ahead of the original budget. Composite Solutions (CS) also reported a higher-than-expected sales increase of 14.4% to €79.6 million in H1 2023 and an increase in EBITDApre of 26.8% to €12.3 million compared to H1 last year. By contrast, the business performance of the Carbon Fibers (CF) unit was not in line with expectations, with a 28.9% decline in sales to €125.1 million and an EBITDApre contribution of €6.1 million (-78.4% compared to the 1st half of the previous year).

An important market segment of the Carbon Fibers Business Unit is the wind industry. Demand for carbon fibers for the wind industry has declined sharply since the beginning of the year. According to current estimates, the expected recovery in demand in H2 2023 will not materialize for the time being. SGL Carbon expects customer demand from the wind industry to pick up in 2024.

Based on this, an impairment loss of between €40-50 million will be recognized on the assets of the Carbon Fibers Business Unit as of June 30, 2023. The impairment relates exclusively to Carbon Fibers, the operating business of the other Business Units is not affected.

SGL Carbon's equity ratio after the impairment as of June 30, 2023 is approximately 36% (December 31, 2022: 38.5%).

Further information on the first six months of fiscal year 2023 can be obtained from the half-year report, which will be published on August 3, 2023.

¹The definition of key figures used in this release is aligned to the Annual Report 2022.

In the printing industry, direct-to-film technology is having a transformative impact on the apparel decoration space. It provides a simple and affordable garment printing process that facilitates vibrant, dynamic, full-colour designs with a durable print. It opens up opportunities for digital print service providers (PSPs) to expand their product offerings in the textile industry, their network of potential customers and expand the range of fabrics they can print on.

Direct-to-film vs. Screen Printing
Direct-to-film printing is the process of digitally printing directly onto a special transfer film sheet. The printed film is subsequently sprinkled with a hot-melt powder and heated. Once the transfer sheet is cured and dried, it can be heat-pressed onto a variety of fabrics to create premium transferred designs for customised merchandising, sportswear, and an array of other promotional applications for the textile market. Compared with traditional screen printing, the plate creation required for that process is far too time-consuming. Not only this, but it does not match direct-to-film’s ability to produce vivid colours and quality details such as shapes, lettering, and motifs often sought after in the promotional and merchandising space for bespoke textiles.

The Mimaki TxF150-75
Mimaki’s first direct-to-film inkjet printer is the TxF150-75, a fitting extension to the 150 series, with a maximum printing width of 80cm. Offering a stable printing plotter, the model’s built-in ink circulation system and degassed ink pack are resolutions to common direct-to-film challenges such as poor ink ejection and white ink clogging. The new printer also includes core Mimaki features including NCU (Nozzle Check Unit) and NRS (Nozzle Recovery System) for stable, uninterrupted print production. Operating in harmony with the textile printer itself is Mimaki’s ECO PASSPORT by OEKO-TEX® certified water-based pigment textile inks, formulated especially for the TxF150-75. Coupled with Mimaki’s RasterLink7 RIP software, users are offered end-to-end oversight and efficiency from creative design to final product.

In addition, and in line with Mimaki’s collaborative approach to meeting customer needs, Adkins has developed an 80cm wide powder shaker cure unit to complete this ‘A brand’ direct-to-film printing solution. By offering the printer and post-processing unit at 80cm wide, customers can print larger garments with less waste and quicker production times, making the process much more cost effective.

Following a strong start at the Spring Edition of Intertextile Shanghai Home Textiles early this year, global industry players have turned their sights to the next international event in August. As the first Autumn Edition to be held in the wake of China lifting many of its pandemic-related border restrictions, the three-day fair will gather around 1,000 international and domestic exhibitors. Traders looking to meet market demand will be able to source from an extensive range of trending and specialised home and contract textile products from 16 – 18 August 2023.

According to a recent market report, the global home textile market is expected to show a CAGR of 5.6% from 2023 – 2028 to reach USD 174.1 billion by the end of the forecast period. Asia-Pacific has dominated the global market in recent years, with China one of its most significant contributors.^[1]

As a manufacturing hub for home textiles, China is gradually recovering from social and business disruptions caused by the pandemic. Speaking at the recent Spring Edition, Ms Rosemary Li, Domestic Sales Manager of Zhangjiagang Coolist Life Technology Co Ltd, a long-time exhibitor specialised in bio-based and functional bedding products, said: “Since China relaxed its pandemic-related control and prevention measures, after Chinese New Year we have been flooded with orders. With both domestic and export orders increasing, it has been almost impossible for the production line to fulfil the order demand.”

While the spring show’s promising visitor flow was a positive start to the Chinese home textile industry’s post-pandemic era, a higher participation of overseas exhibitors and buyers is expected at the upcoming Autumn Edition

The return of special zones and international pavilions
Later this year in Shanghai, exhibitors will showcase their most up-to-date home and contract textile products, ranging from bedding & towelling, rugs, table & kitchen linen, upholstery & curtain fabrics, editors, home textile technologies and textile design. With a wealth of choices for buyers, several show highlights are listed below:

• Editor & Designer Zone: located in hall 5.1, the zone will feature international, high-end editor and designer brands brought by leading exhibitors J&C, Julai, Qianbaihui, Prestigious, Shanghai Lotus, SohoCut, Yada, and more.
• Country and region pavilions: premium suppliers from Belgium, Türkiye and Taiwan (China) will exhibit quality products in their designated pavilions in hall 6.1.
• Textile Designs: textile design studios from Japan, Portugal and Taiwan (China), namely Amilia Design Studio, Fine Art Inc and Tela's Design Lda, will also showcase their seasonal designs in hall 6.1.

Adding to buyers’ sourcing options, a multitude of domestic players from different categories will also showcase their respective products. Highlighted exhibitors include top curtain and curtain fabric suppliers Fu-Tex, Hangzhou Aico, Hexin and Xiaoxuanchuang; bedding suppliers Coolist, Huizhou Wah Shing and Yantai North Home; as well as Hightex, Huatex, Maya and Suzhou Roufang from the upholstery and sofa fabric sector.

Fairgoers can also learn more about the upcoming global trends and designs by visiting the ‘2023 – 2024 Intertextile International Lifestyle Trend’ area. In aid of this, Intertextile Shanghai Home Textiles has joined forces with NellyRodi™, the renowned French forecasting agency, to present the design theme for 2023 – 2024: ‘ALIVE’. HUMAN CAPITAL, ROUSING COMMITMENT and UNREAL REALITIES are the theme’s three main trends.

^[1] Globe Newswire: Global Home Textile Market Report 2023-2028: Increase in Consumer Spending on Home Renovation and Decoration Bodes Well for the Sector. https://www.globenewswire.com/en/news-release/2023/03/08/2622718/28124/en/Global-Home-Textile-Market-Report-2023-2028-Increase-in-Consumer-Spending-on-Home-Renovation-and-Decoration-Bodes-Well-for-the-Sector.html

Freudenberg Performance Materials Apparel (Freudenberg) announces the 37xx PES Series – a range of interlinings that offer the classic feel of cotton combined with the modern features of enhanced durability, increased yields, and low-temperature fusing. With a 100% PES base and special finish, these OEKO-TEX® STANDARD 100 Class I certified products open new possibilities for the business and smart casual segments.

Crafted from a 100% PES base with a special finish, these new interlinings boast enhanced durability and better resilience and recovery over traditional cotton interlinings. The 37xx PES Series interlinings offer the added advantages of no visible impurities or foreign fibers, along with low temperature fusing, reducing the risk of yellowing in the finished product. Compared with cotton interlinings, the 37xx PES Series also offers increased yields of up to 150 cm in width and are more cost effective than traditional cotton interlinings, allowing for easier and more efficient manufacturing.

Apart from the material qualities, the 37xx PES Series offers unmatched consumer safety. Produced at its Nantong, China factory, Freudenberg ensures optimal quality control of the 37xx Series. Furthermore, the interlinings are OEKO-TEX® STANDARD 100 Class I certified, making them safe for even the most sensitive skin types, including for babies.

The 37xx PES Series currently includes the 3738 and 3755 products, offered in 115 g/m2 and 165 g/m2 weights, respectively. These can be fused with other fabrics and interlinings to create the precise hand feel for garments.

Sustainable solutions provider Perstorp has turned its ambitious sustainability targets for 2030 into actionable roadmaps on the corporate level as well as for each of its production plants, outlining hands-on activities to lower greenhouse gas emissions, reduce waste, save fresh water and enable sustainable transformation throughout the value chain.

Over the last year, Perstorp has presented ambitious sustainability targets for greenhouse gas emissions (Scope 1, 2 and 3), as well as for water and waste, to be reached by 2030. The company has now supplemented those targets with roadmaps outlining the steps and actions needed to fulfil them and support customers in reducing their carbon footprint as well as lead Perstorp toward its long-term ambition of becoming Finite Material Neutral.

The largest greenhouse gas emissions are found in Scope 3, which includes raw materials and end-of-life treatment of Perstorp’s products. The Scope 3 roadmap includes the steps necessary to drive the transition of the product portfolio from fossil-based to more sustainable, lower carbon footprint alternatives. This, in turn, will help enable Perstorp’s customers to achieve their own sustainable transition. One key project in this roadmap is Project Air, an initiative aiming to replace all the fossil methanol that Perstorp uses in Europe with methanol produced from residue streams such as carbon capture and utilization (CCU) and renewable sources like biogas. This alone is expected to reduce carbon dioxide emissions by 500,000 tons per year.

The corporate Scope 1 & 2 targets (direct greenhouse gas emissions from Perstorp´s production plants and purchased energy), as well as the targets for water and waste, have been broken down into local targets and roadmaps, firmly anchored in the specific prerequisites for each production plant.

Initiatives on reducing energy consumption and shifting to energy from non-fossil or recovered sources can, for example, be found in the local roadmaps, while the steps to reach those targets are tailored specifically to each location. Among the planned local activities are also initiatives to replace fresh water used in the production with purified wastewater and to find different ways to reuse and recycle waste from production.

As a trade fair for safety and occupational health in China, the 104th China International Occupational Safety & Health Goods Expo (CIOSH 2023), organized by China Textile Commerce Association (CTCA) and Messe Düsseldorf (Shanghai) Co., Ltd. (MDS), will be grandly held at the Shanghai New International Expo Centre (SNIEC) Hall E1-E7 from 13-15 April 2023. Following three years of epidemic prevention and control measures, the situation has stabilized in China, allowing the labor protection market to enter a phase of rapid recovery and rebound. CIOSH 2023 will attract over 1,500 exhibitors from 14 countries, showcasing their latest protective equipment and technology in an exhibition area exceeding 80,000 square meters.

Integrating Online and Offline Platforms
CIOSH 2023 encompasses four major sectors: Safety at Work, Security at Work, Health at Work, and Emergency Rescue Management. Renowned domestic and international exhibitors, including 3M, Honeywell, Ansell, SATA, JSP, MSA, DELTAPLUS, Lakeland, Cortina, UVEX, CM Chaomei, Xing Yu Gloves, DS, East Asia Glove, Hanvo, SOMO Zhongmai Safety, SAFETY-INXS, and TELPS, will assemble on site. At the same time, CIOSH 2023 has introduced an innovative online platform - CIOSH VIRTUAL. By offering online displays, live streaming, interactive features, and real-time communications, it breaks time and space constraints, facilitating exhibitors and visitors to continue their business exchanges and cooperations beyond the physical exhibition. So far, nearly 1,300 companies have joined the CIOSH VIRTUAL, showcasing more than 3,000 products online and attracting over 70,000 views.

CIOSH Industry Technical Seminar, Sustainable Development Emerges as the Key Focus
The annual Industry Technical Seminar, held concurrently with CIOSH, serves as a platform for professionals to discuss product solutions, share industry insights, and exchange ideas on relevant policies. In 2021, China integrated climate change mitigation measures into its 14th Five-Year Plan, established a 2030 carbon peaking action plan, and proactively pursued the goal of carbon neutrality by 2060. Under the development objectives of "carbon peaking" and "carbon neutrality," the sustainable development of the personal protective equipment (PPE) industry has become the primary theme of this year's seminar. Experts from China Carbon Low-carbon Certification (Jiangsu) Co., Ltd., China Certification Centre, Inc., and SGS-CSTC Standards Technical Services Co., Ltd., will examine related policies, the effects of "carbon neutrality" on the PPE industry chain and the industries using PPE from different angles. They will also explore the future direction of PPE and offer professional guidance for the transformation of relevant enterprises.

Fall Protection Zone
Falls from height are one of the most common accidents that cause serious injury or death to workers. Effective fall protection requires not only protective equipment, but also professional instructions and training. Therefore, CIOSH set up a new Fall Protection Zone in 2021, which received unanimous acclaim. CIOSH 2023 has continued to invite SKYLOTEC, rothoblaas, JECH, Mode and NTR Safety, five companies that specialize in protection at height, to conduct on-site demonstrations on fall testing, fall protection solutions and aerial rescue, and provide visitors with the most professional fall protection guidance and training.

Occupational Health
CIOSH has always implemented the strategy of expanding the business scope in a diversified way, which devotes itself to providing innovative opportunities and new driving forces for the sustainability of the occupational safety and health industry. This year, focusing on the "occupational health" sector, the exhibition will launch an Ergonomics Zone and an Exoskeleton Technology Zone for the first time.

Major developments FY 2022

• Currency-neutral revenues up 1% reflecting growth in all markets except Greater China
• Double-digit increases in North America and Latin America, EMEA up high single digits
• Gross margin declines to 47.3% due to strong increase in supply chain costs and discounting  
• Operating profit at € 669 million, including one-off costs of € 312 million
• Operating margin decreases to 3.0%  
• Net income (continuing operations) of € 254 million includes € 350 million one-off costs
• Executive and Supervisory Boards propose dividend of € 0.70 per share

Major developments Q4 2022

• Currency-neutral revenues decline 1% impacted by termination of Yeezy partnership
• Gross margin at 39.1% reflecting increased supply chain costs and higher discounting
• Operating loss of € 724 million
• Net loss from continuing operations of € 482 million

Outlook for 2023
Underlying operating profit expected to be around break-even level
In 2023, adidas expects currency-neutral revenues to decline at a high-single-digit rate as macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in Europe and North America as well as uncertainty around the recovery in Greater China continue to exist. The company’s revenue development will also be impacted by the initiatives to significantly reduce high inventory levels. In addition, while the company continues to review future options for the utilization of its Yeezy inventory, the guidance already reflects the revenue loss of around € 1.2 billion from potentially not selling the existing stock. Accounting for the corresponding negative operating profit impact of around € 500 million, the company’s underlying operating profit is projected to be around the break-even level in 2023.

Reported operating loss of € 700 million projected
Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the potential write-off of the existing Yeezy inventory and would lower the company’s operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024. If all these effects were to materialize, the company expects to report an operating loss of € 700 million in 2023.

Purecare, a wellness-focused bedding essentials manufacturer, has launched sheets and pillowcases with CELLIANT® Viscose, the first time the fiber has used been in luxury bedding products in a new offering aptly named the “Recovery Collection.”

Developed by materials science innovator Hologenix®, creators of CELLIANT, and Kelheim Fibres, CELLIANT Viscose is the first in-fiber sustainable infrared viscose. It is lightweighted, soft, highly breathable and has an excellent moisture management. CELLIANT has been clinically demonstrated to promote faster recovery and restful sleep, as it improves local circulation and cell oxygenation, enhancing thermoregulation and comfort.

The collection is available in five colors: dove gray, ivory, clay, moss, and sage in Queen through Split California King sizing and Queen and King pillowcases. The Precision-Fit® corners on the fitted sheets have a one-inch elastic cuff to ensure that they stay securely on the bed. The sheets are also compatible with adjustable base mattresses. The Recovery Collection sheets and pillowcases are also treated with Antimicrobial Silver Product Protection (AgCI).

• Sales of CHF 1 510.9 million,
• Order intake of CHF 1 157.3 million in 2022; order backlog of around CHF 1 540 million as of December 31, 2022
• EBIT margin of 2.1%
• Implementation of action plan to increase profitability ongoing
• Dividend of CHF 1.50 per share proposed

With record sales of CHF 1 510.9 million, Rieter achieved an increase of 56% compared with the previous year (2021: CHF 969.2 million). In the second half of 2022, especially in the fourth quarter, the measures introduced to address material bottlenecks had a positive impact. Consequently, sales increased to CHF 890.3 million compared with the first six months (first half-year 2022: CHF 620.6 million).

Order intake was CHF 1 157.3 million in 2022 (2021: CHF 2 225.7 million) and thus remained at a high level thanks to the company’s technological lead and broad international presence. The market situation, especially in the second half of 2022, was characterized by investment restraint and below-average capacity utilization at spinning mills due to geopolitical uncertainties, rising financing costs, and consumer reticence in important markets.
The company had an order backlog of around CHF 1 540 million at the end of 2022, which thus extends into 2023 and 2024.

The profit at the EBIT level in the 2022 financial year was CHF 32.2 million (2021: CHF 47.6 million). The result was strongly influenced by substantial cost increases, which could only be offset in part through price increases or other remedial measures. In addition, to compensate for material shortages, expenses were incurred in connection with the development of alternative solutions, and in relation to the acquired businesses.

Completion of the Acquisition
Rieter consolidated the acquired automatic winding machine business with effect from April 1, 2022. This acquisition completes Rieter’s system offering in the largest market segment of ring and compact spinning, thus significantly strengthening the company’s market position.

Action Plan to Increase Profitability
Implementation of the action plan to increase profitability is ongoing. With regard to the margins for the order backlog, which remains high, the already implemented price increases in combination with a positive trend in costs, particularly in logistics, are having a favorable impact. In addition, progress was made in eliminating material bottlenecks and reducing expenses for the three acquired businesses.

Dividend
The Board of Directors proposes to the shareholders the distribution of a dividend of CHF 1.50 per share for 2022. This corresponds to a payout ratio of 56%.

Outlook
For the coming months, Rieter expects below-average demand for new equipment at first, with a revival expected in the second half of 2023 after ITMA, the leading trade fair in Milan (Italy). Rieter also believes that demand for consumables, wear & tear and spare parts will recover during 2023.
For the 2023 financial year, due to the high order backlog, Rieter anticipates sales in the order of magnitude of the previous year.
The realization of sales from the order backlog continues to be associated with risks in connection with the ongoing geopolitical uncertainties, rising financing costs, continuing bottlenecks in the supply chains, and possible, currently unforeseeable consequences of the earthquake in Türkiye in February 2023. Despite the price increases already implemented, further global cost increases continue to pose a risk to the growth of profitability. Rieter will specify the outlook in the 2023 semi-annual report.

100 days before ITMA 2023 in Milan, VDMA Textile Machinery launched its “Way2ITMA” webinar series. “Transforming the World of Textiles: efficient – digital – circular”. Under this heading, VDMA technology providers will present their solutions along the value chain.

Speakers of the virtual event were Dr. Janpeter Horn, Chairman of the VDMA Textile Machinery Association and Managing Director of August Herzog Maschinenfabrik, Dirk Vantyghem, Director General, EURATEX, Francis Elias Junker, Area Sales Manager, Andritz Laroche and Tanja Karila, Chief Marketing Officer, Infinited Fiber Company.

With regard to the EU strategy for sustainable and circular textiles, Dr. Horn said: “This topic concerns all of us, consumers and producers. We as machinery builders position ourselves as enablers. We want to be part of the solution of this ambitious project”.

Dirk Vantyghem introduced the core issues of the EU textile strategy launched in 2022, which is the most ambitious plan ever, to push the textile sector towards sustainability and transparency, and promote a new circular business model. If wrongly designed, that new framework may collapse the European textile value chain. But if done rightly, the changes ahead could bring a paradigm shift in the sector, where competitiveness is no longer based on price only, but also on sustainability and innovation, explained Vantyghem.

Francis Elias Junker showed high level of expertise for mechanical textile recycling for both spinning and nonwovens industries that Andritz has. The company has a diversity of solutions to offer and several cooperation partners, covering the value chain from recovery of fiber to the chemical modification and preparation for the production of yarn.

Tanja Karila gave an overview of how Infinited Fiber is turning textile waste into new fibers. Patented technology turns post-consumer textile waste into brand new premium quality fibers for the textile industry. The textile-to-textile recycling technology captures the value in waste that would otherwise be landfilled or burned.