From the Sector

• The Lenzing Group was the first Austrian company to send goods 100 percent “Made in Austria” by train directly to China.
• The train loaded with TENCEL™ fibers reached Xinzhu station in Xi'an on September 05.

Xi’an, China – The Lenzing Group is breaking new ground due to the short-term increase in demand for sustainably produced fibers from Chinese customers. For the first time, the company delivered wood-based cellulosic fibers, which are produced at the Austrian sites in Lenzing and Heiligenkreuz, directly to China by train. Thanks to this new transport route, Lenzing is able to meet the urgent demand of its Chinese customers twice as quickly as by the usual sea freight.

The first complete train with goods 100 percent “Made in Austria” started on August 20 in the presence of Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology, His Excellency Xiaosi Li, Ambassador of the People's Republic of China in Austria, Stefan Doboczky, Chief Executive Officer of the Lenzing Group, Thomas Kargl, Board Member of the ÖBB Rail Cargo Group, Erwin Cootjans, Chief Executive Officer of Nunner Logistics, and Erich Hampel, Chairman of the Board of the B&C Private Foundation, at the Vienna South Terminal and reached his destination on September 05 at the Xinzhu train station in Xi'an, China. The train loaded with 41 containers with TENCEL™ branded lyocell and modal fibers and a total value of EUR 1.8 mn, passed a total of 10,460 km in seven countries: Austria, the Czech Republic, Poland, Belarus, Russia, Kazakhstan and China.

The first Lenzing fiber train was received in a grand ceremony on Tuesday, September 08 at the container terminal in Xi'an. Numerous guests, including the Austrian ambassador to China, Friedrich Stift, representatives of the Xi'an Municipal Government, the China Railway Xi'an Group, the Xi'an International Trade & Logistics Park as well as representatives of the Lenzing Group, the China National Textile and Apparel Council, Lenzing customers and the media attended the ceremony.

In his speech, Friedrich Stift, Austrian ambassador to China, emphasizes the importance of international trade and sustainable development: “The delivery of Austrian-made products through the CHINA RAILWAY Express adheres to the sustainable concept of Lenzing. Since China and Austria signed the bilateral railway cooperation agreement in 1994, the two countries have maintained good cooperation in the railway field and will continue to do so in the future. China is Austria's largest partner in Asia, and it is believed that after the outbreak of the corona crisis bilateral trade will normalize in 2021.”

“This is the first time for the Lenzing Group to deliver Austrian-made TENCEL™ branded fibers directly to Chinese customers. The Silk Road has been a main transport route between Europe and Asia since ancient times. Chinese consumers affectionately call TENCEL™ fibers ‘Silk from Heaven’. The China-Europe Express can reduce the transport time between Europe and China by half, thus meeting Chinese customer’s demand for environmentally friendly fibers more quickly”, states Hu Jian, Senior Vice President of the Lenzing Group for North Asia.

Neumünster – Oerlikon Neumag has successfully commissioned three staple fiber bicomponent systems in China. With capacities of 50 tons per day each, the systems are being used to manufacture coresheath bicomponent fibers made from PP/PE or PET/PE at two long-standing Oerlikon Manmade Fibers customers. These fibers are used to make hygiene products.

Oerlikon Neumag staple fiber technology still in demand

Despite coronavirus-related restrictions, the three new systems were installed within three and five months, all without any problems. They have meanwhile been operating under stable production conditions with optimum fiber quality of the very highest standards for several weeks now.

Many years of experience in bi-component spinning

Oerlikon Neumag looks back on many years of experience in constructing bicomponent staple fiber systems. The first system for this fiber type was commissioned as far back as 1995. Oerlikon Neumag offers solutions for the most varied cross-sections, ranging from sheath/core’, ‘side-by-side’, ‘island in the sea’, ‘orange type’ as well as ‘trilobal’. The applications are diverse: from self-crimping fibers, bonding fibers, super-microfibers all the way through to hollow fibers.

The Oerlikon Neumag bicomponent technology is particularly characterized by the extremely robust spin packs that have no expensive wear parts, which considerably reduces the costs here. The reconditioning costs when cleaning the spin packs are kept to an absolute minimum. Add to this the separate temperature transfer option in the spinning beam for the two polymers. As a result, the quality and the viscosity of the polymers can be accurately adjusted in accordance with the respective process requirements.

• Due to the short-term increase in demand from Chinese customers, Lenzing AG is breaking new ground. For the first time in the history of Austria, a local company is sending goods that are 100 percent produced in Austria directly to China by train.

Vienna – The Lenzing Group stands for the ecologically responsible production of specialty fibers made from the renewable raw material wood. Due to the high demand from Chinese brands and retailers for sustainably produced fibers, Lenzing delivers fibers from the two Austrian production sites Lenzing and Heiligenkreuz directly to customers in China by train for the first time.

Austria's first complete train with goods exclusively “Made in Austria” will leave the Vienna South Terminal towards China on August 20, 2020 at 11 am. The train is loaded with Lenzing fibers and provided by NUNNER Logistics. In strict compliance with the COVID-19 protective measures, Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology, His Excellency Xiaosi Li, Ambassador of the People's Republic of China in Austria, Stefan Doboczky, CEO of the Lenzing Group, Thomas Kargl, Board Member of the ÖBB Rail Cargo Group, Erwin Cootjans, CEO Nunner Logistics and Erich Hampel, Chairman of the Board of the B&C Private Foundation, took part in the departure ceremony.

The train, which started at Vienna, brings 41 containers with TENCEL™ branded Lyocell and Modal fibers with a total value of EUR 1.8 million directly to customers in China. On its 16-day trip to Shanghai, the train covers a total of 10,460 kilometers and passes seven countries: Austria, the Czech Republic, Poland, Belarus, Russia, Kazakhstan and China. “With this new transport route, we can meet the high demand from our customers for sustainably produced fibers more quickly. Thanks to train transport, the urgently needed fibers arrive at our customers in China twice as quickly as by sea freight,” says Stefan Doboczky, CEO of the Lenzing Group. Lenzing has had very good experiences with rail transport for a long time when it comes to delivering the renewable raw material wood to its plants. Almost 70 percent of the wood processed at the Lenzing site is already delivered by rail. “Our declared goal is to shift more freight traffic to rail. Rail is the only way to combine climate goals and economic interests and thus transport growth. That is why we are happy to be part of this unique project for our long-standing customer,” says Thomas Kargl, Board Member of the ÖBB Rail Cargo Group. “Transporting goods by rail to China is possible. And this train from Vienna to China is an integral part of climate protection. Because we want to support the shift from road to rail, especially in freight transport. Today's train is the first step – I am convinced this train will set an example”, says Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology.

• Fiber prices and demand under pressure
• Measures to protect employees, customers and suppliers and to keep plants operational implemented successfully
• Joint venture Hygiene Austria established for industrial production of protective masks in the fight against the COVID-19 pandemic – new distribution channel via shop.hygiene-austria.at
• Strategic investment projects progress according to plan – financing agreements for construction of pulp plant in Brazil concluded as planned
• Revenue and operating result in the remaining quarters of 2020 expected to exceed that of the second quarter

Lenzing – In the first half of 2020, the Lenzing Group faced a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis. To counteract that, Lenzing intensified its cooperation with partners along the value chains and adjusted its production volumes and sales prices to market reality. The disciplined implementation of the sCore TEN corporate strategy and the focus on specialty fibers continued to have a positive impact.*

*Please read the attached document for more information

• Textile yarn manufacturer Fujian Billion kicks off industrial yarn production

Remscheid – from the end of this year, the southern Chinese yarn manufacturer Fujian Billion Polymerization Technology Industrial Co., Ltd. will be producing industrial yarns using systems supplied by Oerlikon Barmag. With this, the company – considered to be the largest polyester yarn manufacturer in southern China – is now also entering the industrial yarn market.

With 124 positions and a capacity of around 250,000 tons per annum, this project is the largest single industrial yarn order placed with Oerlikon Barmag to date. And with this order, the southern Chinese yarn manufacturer instantly positions itself as one of the ten largest Chinese industrial yarn producers. “The systems at Fujian Billion come with our latest draw unit design, which has been optimized for use with Oerlikon Barmag automation solutions”, comments Roy Dolmans, Head of Development for the Industrial Yarn Process. As a result, the newcomer in the industrial yarn sector is now superbly equipped for the future.

The well-known company – located in the Chinese Fujian Province – will be predominantly manufacturing high-tenacity (HT) and low-shrinkage (LS) yarns from the end of this year. These sophisticated yarns are deployed both in the automotive, geotextiles and safety sectors (HT yarns) and in the manufacture of coated industrial textiles such as truck tarpaulins and tents (LS yarns).

Founded in Jinjiang, Quanzhou, in 2003, Fujian Billion Polymerization Technology Industrial Co., Ltd. is one of the top 500 privately-owned enterprises in China. Annually, the yarn manufacturer produces around 2.8 million tons of filament yarn and ethylene-propylene side-by-side (ES) fibers.

• Schleswig-Holstein Minister President visits Neumünster, Germany

Since the outbreak of the coronavirus pandemic, the worldwide demand for protective masks and apparel has resulted in a record number of new orders in the high double-digit millions of euros at the Oerlikon Nonwoven business unit of the Swiss Oerlikon Group. From the manufacturing site in Neumünster, Germany, the high-tech meltblown systems – with their patented ecuTE+ nonwovens electro-charging technology – are meanwhile be exported all over the world. For the very first time, a contract has now been signed with a business in Australia. Today, Schleswig-Holstein’s Minister President Daniel Günther was won over on site by the technology of a ‘global player’. Rainer Straub, Head of Oerlikon Nonwoven, was thrilled, stating: “The machines and systems for manufacturing manmade fiber and nonwovens solutions from Neumünster enjoy an outstanding reputation throughout the world. It is especially in this crisis that the technology from Schleswig-Holstein has proven itself to be absolutely world-class.”

In addition to a tour of the meltblown system and its assembly and production facilities, the visit by Minister President Daniel Günther had one purpose above all: the dialog between politicians and business. Rainer Straub, Head of Oerlikon Nonwoven, and Matthias Pilz, Head of Oerlikon Neumag, jointly expressed their thanks for the support that Oerlikon has repeatedly had the fortune to experience over the past months and years in Schleswig-Holstein and looked to the future full of hope. “As a result of our additional investment at the site here in Neumünster – be this in our new technology center that will be completed by the end of this year or in our new logistics center that is already operating – we, as one of the region’s largest employers, are continuing to move forward, supported by a State Government that is also focusing on both promoting industry and business and on advancing an efficient training and educational system, as innovation is only possible with outstanding engineers”, stated Matthias Pilz. And Rainer Straub directed his appeal specifically at the Minister President: “Treat education and training as a priority. Ultimately, they will secure the future of Schleswig-Holstein as a center of excellence and manufacturing!”

Five-million-euro digitalization program

Daniel Günther, the incumbent Minister President of Schleswig-Holstein since 2017, immediately responded, making reference to one of the Federal State’s current training initiatives: “The State Government is supporting higher education institutions and students in the present coronavirus crisis. With a five-million-euro digitalization program, we are investing on the long-term digitalization of our higher education institutions. With this, we are overall creating a future for young people, particularly also for those who could very well go on to invent the next generation of manmade fiber systems.” And the Minister President was just as impressed by the willingness and readiness with which Oerlikon has been providing high-level support since the beginning of the COVID-19 pandemic to master the present challenges as he was with the company’s meltblown technology itself. Rainer Straub explained: “When, at the beginning of the pandemic in February, demand for protective face masks increased rapidly, we at Oerlikon Nonwoven responded immediately. We ramped up all the available production capacities here in Neumünster in order to quickly manufacture nonwovens for producing face masks using our laboratory systems. As a result, we have been able to make a small, regional contribution to covering demand. In parallel, we have pulled out all the stops in order to systematically further expand our skills as machine and system builders so as to cater to the initially expected, and now also continuing, global demand for meltblown systems as quickly as possible.”

Leading meltblown technology

The Oerlikon Nonwoven meltblown technology – with which nonwovens for protective masks can also be manufactured, among other things – is recognized by the market as being the technically most efficient method for producing highly-separating filter media made from plastic fibers. The capacities for respiratory masks available in Europe to date are predominantly manufactured on Oerlikon Nonwoven systems. “Ever more manufacturers in the most diverse countries are hoping to become independent of imports. Therefore, what we are experiencing in Germany is also happening in both industrialized and emerging countries throughout the world”, commented Rainer Straub. In addition to China, Turkey, the United Kingdom, South Korea, Austria and numerous countries in both North and South America, Australia and not least Germany will for the first time also be among the countries to which Oerlikon Nonwoven will be delivering machines and equipment before the end of 2021.

• ISKO and Bluesign announce their partnership for the creation of a cleaner, safer, and transparent world of denim. ISKO just released its landmark
• Sustainability Report, setting the target of achieving bluesign® APPROVED accreditation by the end of 2020.

Denim is a timeless staple in wardrobes around the world. ISKO, the leading denim ingredient brand, and Bluesign, the architects of a sustainable and responsible textile supply chain, are joining forces in a partnership. Alliances like this are the source of effective improvements.

ISKO has a long-standing commitment to ensure the integrity of its ingredients and the traceability of the fibers and materials used in its denim apparel. By releasing the Sustainability Report, ISKO again demonstrates its commitment to creating and designing denim apparel that has a positive connection with the planet. In this report, a primary target of ISKO is to achieve bluesign® APPROVED accreditation for its denim textiles, attaining the strictest industry standard for consumers and environment alike.

With the goal of completing this process by the end of 2020, the company has already performed bluesign® COMPANY ASSESSMENT at an above-average level. This shows how ISKO anticipates changes rather than simply reacting to legal or stakeholder requirements, pursuing an approach that has a huge potential and includes several actions for further improvements. Through this partnership, ISKO and Bluesign continue the movement of the textile and fashion industry into a future that pays more attention to people and the environment, because only when both are considered can the industry truly make a positive long-lasting impact.

“ISKO, as the soul of jeans, has a vision for denim that is creative in design and innovative in the use of technologies. These distinct qualities in combination with a determined commitment to a sustainable supply chain makes ISKO a true leader in the textile industry. We look forward to the next impactful steps we will take together.” Jill Dumain, CEO, bluesign technologies. “As the leader of this industry, we feel it is our responsibility to be and act as a force for good. We have always prioritized transparency and accountability, highly valuing every improvement that can be achieved by sharing values and goals through partnerships. This one makes us particularly proud, as it raises the bar of our efforts and challenges us to maintain our improvement efforts.” Ebru Ozkucuk Guler, Senior Sustainability & CSR Executive.

The Oerlikon Barmag Huitong Engineering joint venture, part of the Oerlikon Manmade Fibers segment, recently commissioned a polycondensation system which feeds a polyester industrial yarn system. The future operator will be industrial yarn manufacturer Jiangsu Solead New Material Group Co. Ltd., which is placing its trust in the Oerlikon Manmade Fibers ‘From Melt to Yarn’ total solution philosophy.

This successfully concludes the first phase of this major project. Oerlikon Barmag Huitong Engineering installed the polycondensation system, which has a capacity of 600 tons a day, at Jiangsu Solead New Material Group Co. Ltd. in the Chinese Jiangsu Province. This will be connected to an Oerlikon Barmag industrial yarn spinning system with a 350-ton-a-day capacity. The new systems will be deployed to produce predominantly high-tenacity (HT) yarns for use in agricultural, infrastructure, transport, security and outdoor applications. These systems can be used to manufacture yarns with up to 3 x 6,600 dtex of high yarn quality with simultaneously high production efficiency. Furthermore, low-shrinkage yarns for coating textiles and so-called LDI yarns (high-tenacity, low-denier industrial yarns) for industrial sewing yarns, among other things, are also manufactured.

Technologies with an excellent environmental performance throughout the entire product life cycle – that is what “Autoneum Pure.” stands for. In future, components that meet the highest standards in terms of sustainability and eco-friendliness can be identified at a glance under this label. This also includes the innovation “Mono-Liner” for wheelhouse outer liners.

As innovation leader in acoustic and thermal management, Autoneum continuously invests in the development and production of resource-saving components that make cars lighter and thus more climate-friendly. In view of an increasing sustainability awareness and the correspondingly greater information needs on environmentally-friendly vehicle components, the Company has now launched Autoneum Pure. The label determines particularly sustainable technologies, thereby guiding car manufacturers in product selection for future models.

Autoneum Pure is based on a comprehensive set of criteria assessing the sustainability performance of a product in all four phases of its life cycle: material procurement, production, use and end of life. For example, components with a high content of recyclable materials or those that achieve significant weight savings compared to comparable standard components qualify for the “Autoneum Pure.” label. Autoneum already offers various multifunctional technologies that meet the high standards for Autoneum Pure products: Ultra-Silent for underbody systems or battery undercovers, Di-Light for carpet systems, Prime-Light and IFP-R2 for inner dashes and floor insulators as well as Hybrid-Acoustics PET for e-motor encapsulations and engine-mounted parts, which was launched in fall 2019.

With Mono-Liner, the latest innovation for wheelhouse outer liners is also included in the Autoneum Pure portfolio. Among other things, the Mono-Liner-based components convince thanks to their lightweight construction, thereby contributing to lower vehicle weight with correspondingly less fuel consumption and emissions. The excellent life cycle assessment is also based on their particularly resource-saving manufacturing: Production cut offs of the components, which consist to a large extent of recycled PET fibers, can be processed into pellets and completely returned to the manufacturing process as fibers. An SUV and a crossover model from a US vehicle manufacturer already benefit from Mono-Liner wheelhouse outer liners.

Anahid Rickmann, Head of Corporate Communications & Responsibility, explains: “With Autoneum Pure we are the first automotive supplier to establish a sustainability label in the field of acoustic and thermal management. Autoneum Pure is part of the Company's Advance Sustainability  Strategy 2025 and sets industry standards in product communication.”

• Digital processes also speed up the manufacture of meltblown systems

in order to further optimize the material provision for the Oerlikon Neumag and Oerlikon Nonwoven business units and to strengthen internal processes at the German site in Neumünster, the Manmade Fibers segment of the Swiss Oerlikon Group decided last year to invest in a state-of-the-art logistics center with a new lift center. It has already been fully operational for a few weeks. This is tremendously helpful for speeding up the processing of the numerous orders for meltblown systems for manufacturing high-quality nonwovens for protective masks and apparel that Oerlikon Nonwoven has received over the past months alone

Investing in a new Oerlikon Neumag and Oerlikon Nonwoven logistics center is paying dividends: the processing speed when manufacturing new systems – very much to the benefit of customers – considerably improved in the first week after the center started operating, not least as a result of the optimized processes and the material handling. After 25 years, the time had finally come to break new ground and to better equip ourselves for the future requirements of the markets. The paternoster storage facility to date not only needed to have regular repairs carried out due to its age, it was also too small for the projects increasingly being carried out today. The only 90 m² were capable of storing around 12,000 parts. In contrast, the new logistics center now offers more than 250 m² of storage space for in excess of 25,000 parts. As a result, this now also houses all small parts, which used to be stored in the high-rack facility due to lack of space.

New hardware, new software
Coinciding with the opening of the new logistics center, Oerlikon also introduced new digital processes that will also help cope with the increasing production volumes. To this end, consistently maintained master data and photos for all parts ensure safe, paper-free storage and handling of the material from now on. In order to minimize mistakes, a laser pointer now indicates from which or to which space the goods are moved. Furthermore, a photo of the material, sorted to type, is displayed on the screen. The digitalization of the warehousing facilities secures the pick and put-away process so that checking material numbers becomes superfluous when removing items from the warehouse.