From the Sector

• 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.

• Hypetex® to Showcase Coloured Carbon and Flax Fibre Solutions
• Hypetex, London, April 20 2022, Booth R52, Hall 6

Hypetex, the market leaders in colouring carbon and natural fibre materials, will demonstrate both the processing and sustainability benefits of its patented colourisation technology when it exhibits for the first time at JEC World 2022.

Exhibiting as part of the Composites UK stand (Booth R52), Hypetex will display its portfolio of uniquely coloured carbon fibre materials including 3K woven styles, ultra-lightweight spread tow fabrics, UD, and 3D materials. Hypetex will also present details of its latest eco-friendly coloured flax materials  which combine sustainably grown natural flax with sustainable colouring technologies. Hypetex patented colouring technology, available in an extensive palette of standard and bespoke colours and shades, can be applied to traditional woven fabric constructions, non-woven UDs, spread tow and bespoke fabric designs. The technology replaces a traditional coloured painted finish, providing an exceptional depth of colour to any composite part, improving thermal conductivity and reducing heat absorption ,whilst reducing the overall weight and processing time with no compromise to the mechanical performance of the composite structure.

By removing the need for painting, and the associated preparation steps, Hypetex technology provides manufacturers with a repeatable straight out of the mould coloured finish, that is not only easy to integrate into all composite processes, but also takes additional materials, consumables, and process time out of the component cost. As part of its continued commitment to leading the drive for more sustainable composite solutions, and its focus on improvements based on the ESG framework. Hypetex will also display its new range of coloured flax fibre textiles. The advanced colouring technology used protects the natural flax fibres throughout the high temperature processes required for composite production, avoiding burning or any discolouration issues common to natural fibres. In addition, Hypetex colouring solution is an ecofriendly sustainable alternative to traditional dyeing processes which are a significant cause of global water pollution.

The Hypetex team will be on hand throughout the show to provide additional details on Hypetex materials and their integration into the manufacturing process. Visitors to the Hypetex stand will be able see Hypetex carbon and flax products in raw fabric, and how its unique colour palette translates into the most distinctive finished moulded components. Hypetex partners SHD Composites, Textreme, Sigmatex and Angeloni will also have materials and components on display at JEC World 2022, including sporting equipment such as racquets, sticks, and skateboards, which highlight the massive range of processing options and potential applications for this novel technology. One such application, the adidas Kromaskin field hockey stick, with a unique Hypetex coloured Textreme spread tow carbon finish, will also be part of the JEC Innovation Planets feature.

JEC World announces the dates of the show in 2023, taking place from April 25 to 27, and in 2024, from March 5 to 7, in Paris Nord Villepinte in the same halls.
Taking place every year for more than half a century, JEC World gathers the whole value chain of composite materials in Paris. The event brings together not only all major stakeholders of the composites industry but is also the place to be for innovative startups in the field of advanced materials, and for experts, academics, scientists and R&D leaders. For professionals from the various application sectors of composite materials, it is a unique showcase of what composites can offer, and an unlimited source of inspiration. So, with this two-years schedule, professionals can plan their participation while ahead to make the most out the show.

On March 10th, JEC Group and Composites Expert have signed a partnership agreement to promote E-learning Composites Academy, the first 4.0 training platform dedicated to manufacturing processes of composite materials.

This partnership will start with two first steps: an introduction webinar session on March 15th at 4pm CET, and two sessions of training during JEC World 2022, on Tuesday, May 3rd and Wednesday, May 4th, in Paris where Composites Expert will present the E-learning Composites Academy, a new pedagogical approach aimed at appropriating knowledge of polymer transformation specially developed by Composites Expert.

Tools have been designed to combine the theoretical part (E-Learning course platform) and the practical part (BOXs, software, process simulator, exercises through manipulation) to observe complex phenomena, with the aim of mastering and optimising transformation processes. The aim of this presentation is to introduce people to the learning method and the interactivity of the teaching aids used in industry and education.

“One of JEC Group’s objectives is to develop access to education to help the composites industry to attract and train talented professionals. So, we are very proud to announce this partnership and to support Composites Expert initiatives, as joining common efforts and strategies will benefit to the overall industry”, stated Anne-Carole Barbarin, Content and Product development Director.

“The partnership with JEC Group is a major step towards the development of our training platform, while several manufacturers have already supported us, such as Arkema, Chomarat, Daher, Diatex, Pinette PEI, Porcher, Sopara, joining JEC World to officially launch our platform is an amazing opportunity.”, stated Jean-Pierre Cauchois, CEO Composites Expert.

These training sessions are targeting companies’ employees who would like to improve their expertise, to study professional reconversion, the companies who would like to know more or use composite materials, and universities and school for students to go from theory to practical exercises.

• A springboard for entrepreneurs in the composites industry

In a few years, JEC Composites Startup Booster has became a reference for entrepreneurship in the composites industry worldwide. Each year before JEC World, among the startups that submitted their application, 20 of them are selected. 20 finalists from all over the world who will join the leading composites trade show to pitch their project on stage before a panel of expert judges.

This competition is a unique opportunity to network and shine a light on what will be the future of the composites industry so save the date: the two pitches sessions will happen on May 3rd, and the winners will be named on May, 4th at 2.45 pm at JEC World 2022 in Paris as well as online on JEC World Connect platform. This year’s competition is sponsored by Airbus & Mercedes-Benz (Main Innovation Partners) as well as Magna Exteriors (Innovation Partner).

Launched in 2017, Startup Booster has been organized in three different regions (Europe, USA and Asia) and has already fostered the emergence of 500+ innovative projects from 50+ countries, 80 finalists and 30 winners, including Arevo, Continuous Composites, ComPair, Fortify and Vartega…
This challenge not only represents an opportunity to the winners of the trophy but to all the parts involved: participants, jury, official partners and the worldwide audience of JEC World. It brings the entire composites value chain together, creating future business opportunities.

The 20 finalists are divided into two categories:
• Process, Manufacturing & Equipment
• Materials & Products

The jury includes representatives from major manufacturers and investors:
Jelle BLOEMHOF, Head of Manufacturing Technologies of Composite, Airbus
Karl-Heinz FULLER, Head of Future Outside & Materials Mercedes-Benz AG
Florent ILLAT, Head of Safran Corporate Ventures, Safran
Brian KRULL, Global Director of Innovation, Magna Exteriors
Tim VORAGE, Founder and Manager Growth Garage Accelerator , Mitsubishi Chemicals Advanced Materials

Two pitch sessions of 10 presentations each will be held in the Agora stage (Hall 5), on Tuesday, May 3, from 10am to 11.25am (Category: Products & Materials) and from 4.30pm to 5.55pm (Category: Process, Manufacturing & Equipment). Three winners will be chosen by the jury and one winner for the sustainable aspects of the project. The awards ceremony will be held on Wednesday, May, 4th at 2.45 pm.

Category “Products & Materials”
o Blackleaf (France)
o Dongnam Realize (South Korea)
o FibreCoat (Germany)
o FVMat (Israel)
o Ora Graphene Audio (Canada)
o Pangolin Defense (France)
o Phononic Vibes (Italy)
o Revolve (Germany)
o Smart Resilin (Israel)
o Space Walker (Japan)

Category “Process, Manufacturing & Equipment”
o Antefil Composite Tech (Switzerland)
o ANYBRID (Germany)
o Atomic-6 (USA)
o Carbon-Drive (Germany)
o Continuum (Denmark)
o Fibraworks (Germany)
o Herone (Germany)
o RVmagnetics (Slovakia)
o Touch Sensity (France)
o XARION Laser Acoustics (Austria)

• The 16th World Pultrusion Conference will be postponed to 5-6 May 2022

The EPTA – European Pultrusion Technology Association in cooperation with the American Composites Manufacturers Association (ACMA) will postpone the 16th World Pultrusion Conference to 5-6 May 2022 due to the corona situation and the postponement of the JEC World, with which there is a close partnership.

This conference takes place every two years and is the meeting point of the European and worldwide Pultrusion Industry. More than 25 international speakers from Belgium, Germany, France, Spain, The Netherlands, Turkey, UK and the USA will present practical presentations about innovative applications, technologies and processes. Equally current market trends and developments are on the agenda.
This World Pultrusion Conference takes now place on 5-6 May 2022 in Paris, France. The presentation language will be English. The program, further details and registration information is available at www.pultruders.com.

Strict protective measures will make the industry meeting possible at the International Conference on Cellulose Fibres in Cologne on February 2 and 3, 2022. The latest innovations will be shocased: from hygiene and textiles to non-wovens and carbon fibre alternatives to lightweight construction applications. Online participation is also possible.

Cellulose fibres show an increasingly expanding wide range of applications, while at the same time markets are driven by technological developments and political framework conditions, especially bans and restrictions on plastics and increasing sustainability requirements. The conference provides rich information on opportunities for cellulose fibres through policy assessment, a session on sustainability, recycling and alternative feedstocks as well as latest development in pulp, cellulose fibres and yarns. This includes application such as non-wovens, packaging and composites.

Live at the conference, host nova-Institute and sponsor GIG Karasek GmbH will grand the “Cellulose Fibre Innovation of the Year” award to one of six highly interesting products, ranging from cellulose made of orange and wood pulp to a novel technology for cellulose fibre production. The presentations, election of the winner by the conference audience and the award ceremony will take place on the first day of the conference.

The conference sessions reflect the current topics of industry and research. “Strategies and Market Trends” provides an overview of the rapid development of cellulose fibres and their technological progress across the fibre market. An analysis of the key cost components of these fibres to benchmark against current cost levels will highlight future opportunities and challenges for novel textile fibres. The session will conclude with an overview of the industry's recent strategies to defossilize the fibre market.

The session “New Opportunities for Cellulose Fibres in Replacing Plastics”, focusses on questions such as: “What impact does the ban on plastics in single-use products have on the industry?” and “What are the latest regulatory issues and policy opportunities for cellulose fibres?”. This part of the conference presents new opportunities for the replacement of fossil-based insulating materials with cellulose-based technologies suitable for use in a variety of applications, from aerospace to mobility and construction.
Institutefor Ecology and Innovation

“Sustainability and Circular Economy” highlights crucial issues with regard to the overall goal of keeping the environmental impact of cellulose fibres low. A core theme of the session is the responsible use of wood and forests. With this objective, the five speakers discuss the importance of circular concepts for cellulose feedstocks. Exciting insights into the important “Hot Button Report” are offered by Canopy. The “Hot Button” report enables the producers of cellulose fibres to better understand the impact their raw materials have on forests and the climate development worldwide.

The full conference programme is available at www.cellulose-fibres.eu/program.

The AVK – Industrievereinigung Verstärkte Kunststoffe – has once again presented its Innovation Awards to companies, institutes and their partners. Three composites innovations were recognised in each of the three categories – “Innovative Products/Applications”, “Innovative Processes” and “Research and Science” – at the new event JEC Forum DACH on 23 November 2021, the first edition of which was held in Frankfurt.

“As usual, the submissions included a lot of very interesting and promising products and processes this year. The Innovation Awards highlight the outstanding efficiency, cost-effectiveness and sustainability of fibre-reinforced plastics as well as the companies and institutes operating in the sector,” explains Dr. Elmar Witten, Managing Director of the AVK. The jury of leading experts from the industry honoured the following innovations this year:

Category “Research and Science”
First place in the “Research and Science” category was awarded to the German Aerospace Center (DLR) for its Bondline Control Technology (BCT). This innovative process is used for quality control and assurance of bonded joints. The core element is a porous fabric which is applied to a joining surface using an epoxy adhesive or matrix resin. Peeling away the fabric creates a chemically reactive and undercut surface and can also be used as a test to check adhesion to the substrate. BCT has potential in a variety of possible applications. For example, peel ply can be replaced by BCT fabric to produce composite components with an optimised joining surface. The cost-effective BCT peel test is suitable for coupon testing and process control. In addition, the combined adhesion test and surface pre-treatment can be used for quality assurance of bonded repairs on fibre composite structures.

Second place was taken by the Institute of Textile Technology (ITA) at RWTH Aachen University and its partners AEROVIDE GmbH, Altropol Kunststoff GmbH, Basamentwerke Böcke GmbH, TechnoCarbon Technologies GbR with “StoneBlade – Lightweight construction with granite for the wind industry”. This innovation enables manufacturers to reduce the amount of non-recyclable materials used in rotor blade construction. At the same time, it reduces the weight of these components and improves the mechanical properties relating to the stability of wind turbines. The innovative approach replaces glass-fibre reinforced plastic in the blade components with hard rock – a natural, cost-effective and recyclable lightweight material. The slabs of rock are cut and ground to a thickness of just a few millimetres and embedded in a fibre composite laminate with carbon fibre, which stabilises them for alternating load cases. The pre-stressed material is pressure-stable in the composite and can absorb tensile forces in the event of continuously alternating loads without any loss of stiffness.

Third place went to the Dresden University of Technology – Institute for Lightweight Construction and Plastics Technology (ILK) with its partner Mercedes Benz AG for the interdisciplinary development of a highly integrated inductive charging module for electric vehicles. The ultra-thin charging module was designed to make optimum use of space in the vehicle underbody without reducing ground clearance. An interdisciplinary approach was adopted for the development process. This involved the electrical, mechanical and process characterisation of high-frequency Litz wires, ferromagnetic foil and metal wire cloth as well as the creation of a simulation model. The result is a demonstrator for a charging system with a structural height of 15 mm and a total weight of 8 kg. It achieves a transmission efficiency of up to 92 percent at 7.2 kW nominal power and active air cooling. The hardware demonstrator was fabricated in a 3-step process using RTM and VARI techniques.

Overview of all the winners in the three categories:
Category “Innovative Products/Applications”
1st Place: “Traffic signs from Nabasco (N-BMC)” – Nabasco Products BV and Lorenz Kunststofftechnik GmbH, partners: Pol Heteren BV and NPSP BV
2nd Place: “Novel, ultratough vinyl ester resin for the construction of large marine vessels” Evonik Operations GmbH
3rd Place: “Air intake housing with a multi-material design for gas turbines” – MAN Energy Solutions SE, Leichtbau-Zentrum Sachsen GmbH and Leichtbau-Systemtechnologien KORROPOL GmbH.
Category “Innovative Processes”
1st Place: “In-mould wrapping” off-tool, film-coated, fibre composite components for exterior applications – BMW Group, Partner: Renolit SE
2nd Place: “Adaptive automated repair of composite structural components in the aviation sector” – Lufthansa Technik AG, Partner: iSAM AG
3rd Place: “Automated surface pre-treatment using VUV excimer lamps” – CTC GmbH
Category “Research and Science”
1st Place: “Bondline Control Technology (BCT)” – German Aerospace Center (DLR)
2nd Place: “StoneBlade – Lightweight construction with granite for the wind industry” – Institute of Textile Technology at RWTH Aachen University, Partners: AEROVIDE GmbH, Altropol Kunststoff GmbH, Basamentwerke Böcke GmbH, TechnoCarbon Technologies GbR
3rd Place: “Interdisciplinary development of a highly integrated inductive charging module for electric vehicles” – Dresden University of Technology – Institute for Lightweight Construction and Plastics Technology (ILK), Partner: Mercedes Benz AG

Submissions for the next Innovation Award can be made from the end of January 2022.

The EPTA – European Pultrusion Technology Association organizes in cooperation with the ACMA – American Composites Manufacturers Association - the 16th World Pultrusion Conference on 03 – 04 March 2022 in Paris, France (as a “hybrid event”, this conference will also have the option of online access). The conference is one of the leading pultrusion events in the world. The event takes place just before the JEC World 2022 in Paris (08 – 10 March 2022).

The presentations are to document innovations in the following subject areas of pultruded reinforced plastics:

● Market development in Europe, USA, Asia
● Innovative applications
● New Markets: Ideas for potential new applications with pultruded shapes or systems
● Sustainability: Technical possibilities, recycling, etc.
● Raw materials
   ○ Development of fibres
   ○ Development of resins
● Construction / Testing / Calculation
● Processes

The presentation language will be English. Deadline for paper submission (title, short abstract, speaker name and address) until 15th October 2021 to info@pultruders.com.
 
The European Pultrusion Technology Association was created in 1989 by a group of leading European pultruders with the mission of supporting the growth of the pultrusion industry by maximising external communication efforts and encouraging knowledge sharing between members. Since 2006, the association has existed under the umbrella of the AVK – Federation of Reinforced Plastics in Frankfurt, Germany. Membership of EPTA is open to all companies and individuals worldwide wishing to further the application of pultruded profiles. For further information visit http://www.pultruders.com.

The Discover Natural Fibres Initiative (DNFI) will announce the winner of the Innovation in Natural Fibre Research Award soon. The aim of the award is to raise awareness of the achievements of the natural fibers sector by recognizing innovative and progressive work by people and institutions at the level of production and use of natural fibers. The closing date for applications was September 10.

Interest in the award was high again in 2021, indicating that research in fields involving natural fibres is robust. The applications that were received reveal a fascinating array of projects, new topics, and both private and public sector funding for natural fibre research.

There are seven finalists, and final judging is underway. The winner of the 2021 Award will be announced in early October.

The seven finalists for the 2021 Award fall into several broad categories, including traceability and the measurement of environmental impacts of natural fibres, the use of natural fibres in manufacturing biodegradable composites, and new or expanded uses for natural fibre materials. Researchers and institutions located in Australia, India, Republic of Korea, and Switzerland are among the finalists for the 2021 award.