From the Sector

• At Kingpins Show Amsterdam (24-25 October) the new “Committed Accessories” dedicated to denim take centre stage.

For the appointment with the exhibition dedicated to denim Metalbottoni focuses on its new range of increasingly green accessories which have captured the attention of the northern European brands most attentive to sustainability in the world of jeans and elsewhere. A range of proposals which, in recent months, has progressed remarkably, following the rules established by the corporate responsibility protocol called NO IMPACT.

This is a responsible approach underlined by the promise “Committed Accessories”, but also a strategic choice with a view to approaching those markets which so far have appeared to be most keen on the subject, for example northern Europe, Benelux and the United States, California in particular. This means that Metalbottoni is acting with increasing assertiveness on those scenarios where it has been present for a long time, in order to increase the segments depth, intercepting new ones, thanks to its wide-ranging eco-compatible proposal.

NO IMPACT: “Committed Accessories” expanded

It is the constant search for sustainable innovation that reveals the extent of the progress made over the past few months by Metalbottoni. For the Kingpins Show exhibition, there are many novelties in store from the company, extending its range in terms of sustainability. Firstly, there is the new MONSTER line eco-processing, special for pure denim, which – apart from metal – includes new material solutions developed through high-profile collaborations.

Also the LEATHER ACCESSORIES line is extending its range of sustainable materials. The line of tags and rear waistband labels is enhanced through interpretations based on two new eco-friendly materials: recycled jacron and cork. For denim designed to be 100% green, also in accessories. Sustainable proposals are increasingly integrated throughout the Metalbottoni range, for example the new glossy and satin finishing developed for the line LABORA on exclusive metal accessories.

Partnerships with brands from northern Europe: Bik Bok and Kings of Indigo

One of the most important collaboration in sustainable fashion is the one with the Norwegian brand Bik Bok. The brand that was founded in 1973 dedicated to young women, today offer accessible trend driven fashion through a network of over 200 single-brand stores in Norway, Sweden, Finland and Austria. The brand has since 2017 chosen to use only BCI (Better Cotton Initiative) certified cotton for their in house premium denim brand Never Denim. For Never Denim Metalbottoni has realized a series of jeans buttons and personalized rivets, all entirely produced according to the NO IMPACT protocol; which means recycled raw materials, no use of chemical agents, through processing and machinery that minimize the use of water and electricity, resulting 100% from photovoltaic panels. All these features are part of a capsule developed for the new AW 2018 collection for Never Denim entirely made with Fair Trade certified cotton. Thanks to this project, the No Impact becomes an integral part of a collection that is aimed at a very large, young and aware public.

Another important brand which has chosen the new NO IMPACT metal accessories is Kings Of Indigo, the Dutch denim mill which is presenting top-quality jeans, inspired by traditional American style, combined with Japanese attention to detail, which today has as many 250 authorised dealers in 12 countries, with a very strong focus on northern Europe.

More and more sportswear for the new Monster SS 2020 collection

The great Metalbottoni classic dedicated to denim confirms the trend of strongly merging with the world of sportswear. The MONSTER line introduces the style developments of the SS 2020 season, with the range being more and more influenced by technical and sports interpretations, alongside sustainable production processes based on the NO IMPACT protocol. The new MONSTER proposals include items made of non-metal material, using sustainable processes, of natural origin and 100% biodegradable; these accessories are similar in appearance to traditional polyester, interpreted in a responsible way, developed through a series of special and unique effects. Also the button, rivet and small plate range has been restyled, having always been the core of the MONSTER line. Today the number of solutions available increases  hanks to new vintage finishing, developed on metal accessories, which are also totally green. “The denim world is moving in a clear direction: that of sustainability.” says Maria Teresa Ricciardo, Creative Director at Metalbottoni, “This is true in particular for some markets, which are strategic for us, and where we are proving increasingly successful, thanks to constant product and process research from a green  perspective, which Metalbottoni today is able to offer within the framework of the NO IMPACT pathway which we have been pursuing for a long time”.

• 16-18 October 2018, Kay Bailey Hutchinson Convention Center, Dallas, TX

A skateboard, architectural panels and a rigid roof for boats – all three products rely on CHOMARAT composite reinforcements. The three designs will be on display at CAMX Expo in the demonstration area of COMPOSITES ONE, partner of CHOMARAT and leader in composites distribution in North America. CHOMARAT’s reinforcements enable to give unique properties to these three applications.

Proof positive: reinforcements offer design flexibility & improved mechanical performance

These three applications give CHOMARAT the opportunity to demonstrate the performance of its uniquely designed reinforcements in real time. “The skateboard combines Rovicore™, the multi-function closed-mold reinforcement developed by CHOMARAT, with C-Weave™, its woven carbon fabric that offers both structural performance and aesthetics to the design. Rovicore™ provides the permeability, while C-Weave™ provides the carbon aspect,” explains Brian Laufenberg, president, CHOMARAT North America.

During the live demos, architectural panels using Rovicore™ and a rigid boat roof in RTM will also be made. “With 60 years of expertise in designing composite reinforcements, CHOMARAT demonstrates that its reinforcements offer excellent mechanical performance and design for a large number of projects in sectors as diverse as sport and leisure, marine and building,” adds Travis IRVIN, Sales Manager and Closed Mould Process Expert at CHOMARAT.

Meet CHOMARAT teams at BOOTH V39 and see Live demos in the COMPOSITES ONE demonstration area at CAMX 2018 EXPO

ITMA ASIA + CITME 2018, Asia’s foremost trade fair dedicated to textile machinery, is once again marked by a significant presence of German companies both in their number and in the quality of their technology. Visitors to the fair will have an opportunity to appreciate the high level of technology being proposed by more than 100 exhibitors from Germany, including more than 80 VDMA member companies. They cover nearly all different machinery chapters with a focus on spinning, nonwoven, weaving, knitting, warp knitting and finishing. The overall exhibition space occupied by German machinery manufacturers is more than 7,000 square meters, confirming Germany’s leading position among exhibiting foreign countries. The German exhibitors increased their booth space by approximately 15 % compared to 2016.

“Choose the original - Choose success" is the message of the VDMA Textile Machinery at this trade fair. On the occasion of the VDMA press conference on the opening day of ITMA ASIA, Ms Karin Christine Schmidt, Technical Director VDMA Textile Machinery, emphasised: “Copycat machines may look similar to the systems they are designed to emulate. But only originals do not simply follow but are pacesetters of technological progress.” Original technology is a keystone of innovation. It has the potential to successfully turn visions of entirely new possibilities in the textile production into reality.

This approach is visualised at the VDMA booth. The stand achieves attention and emotion through the picture motif: Neuschwanstein Castle. This world-famous tourist magnet is more than that: it is also a successful original. A vision, which could be successfully implemented in the long term through innovation and technology!

During the press conference, 18 spokespersons of renowned VDMA member companies showed how original technology can indeed play a major role in China’s and other Asian nation’s efforts to increase the resource efficiency of the textile industry and to interconnect information technology and manufacturing processes.  

Topics of the companies included automation, performance improvement, quality, sustainable solutions (raw material, energy, water saving), Industry 4.0 (in China called intelligent manufacturing), digital AR/VR services, platforms and software.

You are welcome to explore the speakers' statements in the atached PDF.

• For the first time @Interfilière New York edition, the award winning Interfeel’Award Sustainability ILUNA Group with ROICA™ by Asahi Kasei
• Interfilière New York, 17th–18th October 2018, booth 113

In line with the powerful global trend towards smarter fashion solutions, Iluna Group launches its Embroidery Division. Specialists in lace since 1985, the new Embroidery Division offers a complete and innovative product match in line with the modern expectations of brands and retailers. Staying true to Iluna’s DNA, the introduction of emb roidery and guipure are all produced with only recycled materials.

In addition to the launch of the Embroidery Division, this season novelties include:

1. Since  September  2018,  Iluna  Group’s  products with the right percentage of transformed content are GRS (Global Recycled Standard) certified.

2. Of  major  interest  today,  the  launch  of eco - velvet lace  entirely made  of  sustainable  materials  including ROICA Eco - Smart™  Family, Tencel™ Lyocell and  Q - Nova® .

3. Within  the Black  Label  collection,  the  Ultralight series  is  enriched  with  new  multicolor geometric  and floral galloons and allovers: here Iluna changes the color of  the  thread  not  only  in  the background,  but  also  in  the design,  the  same  article  reinvents  itself  in a  variety  of great visual impact.

4. Green   Label   collection, the   Iluna   dedicated range featuring a new responsible approach in respect of the  planet  and  people, able  to deliver  innovation,  beauty and quality, at 360°. In addition to the all over, jacquard, double jacquard and mesh offer, the line is also featuring new stretch Galloon laces fully made with GRS certified recycled materials,  including  the  stretch  thanks  to the introduction of the  unique ROICA™ sustainable yarn part of the ROICA Eco - Smart™ Family.

5. ILUNA has  strategically  included  in  all  their  stretch  laces  only ROICA Eco- Smart™  Family of sustainable yarns since some time.

6. ILUNA can also boast its new STeP (Sustainable Textile Production) certification by Oeko-Tex, a certification  that  clarifies  and  communicates  the  company’s  sustainable  production  commitment. In
addition to this, all products are Oeko - Tex 100 certified.

7. ILUNA has  created  the  new e- shop offering  its  exclusive  materials  to  smaller companies   looking   for   added   values   as: creativity,   innovation,   made   in   Italy   and responsibility.

8. The  whole  collection  is  also  visible online at  its  web  site,  previous  registration, and   orders   can   be   done   directly   online always aiming to customers care.

Nevertheless, for ILUNA smart innovation is not   just   a   project even,   its   space at Interfilière will  be  the stage  where visitors will have  the  opportunity  to  discover the new  collection and to also  to experience and  touch latest boundaries  of  lace smart innovations.

Today ILUNA represents the largest European lace producer, and thanks to its journey toward the most contemporary  way  to  innovate  that  includes  responsibility,  has  also  become  a  reference  point  in  the
international market for a lace offer that is beautiful, innovative and responsible at the same time.  An  alchemy  of  design  and  sustainable  innovation, the  only  eco-fashion  line  that  includes  lace  and stockings,  capable  of  combining  ethics  and  high  quality  standards  with  a  fashion  image  of  bright  and deep colors.

Ted Baker, the global lifestyle brand, announces that on October 4th 2018 it entered into a Global product licensing agreement with Timex Group (“Timex”). The new agreement will allow Ted Baker to underpin its own global plans with a unique product offering in watches that fully compliments its apparel and accessory collections.

Commenting, Ray Kelvin CBE, Founder and Chief Executive of Ted Baker, said:
“This is an exciting opportunity for Ted Baker to drive accelerated growth in our watch business by leveraging the Timex Group global footprint and infrastructure, in line with our strategy to further develop Ted Baker as a global lifestyle brand.”

Commenting, Tobias Reiss Schmidt, President and Chief Executive Officer of Timex Group, said:
“We are delighted to bring Timex Groups expertise and long history as an authentic watchmaker to Ted Baker and look forward to producing exciting and innovative timepieces for their consumers”. Timex Group will launch the collections Internationally through premium retail partners and its global distributor network in summer 2019.

• Italian expertise, research and green innovation.
• METALBOTTONI ups the stakes with one-of-a-kind interpretations, to enhance its market presence.

At Première Vision Accessories (Paris, 19-21 September) the company presents the new collection VÀNITA, a mix of leatherwear and sportswear, based on Made in Italy craft, with an increasingly wide and coordinated range.

Based on product experience, combining new trends in accessories. The METALBOTTONI strategy is enriched with product novelties which aim at exploring new existing market segments. A strategy which increasingly leads great artisan production skills to meet constant research and expansion of the range, with the world of sportswear becoming more and more pivotal; without forgetting the important sustainable innovations of the NO IMPACT protocol.

No Impact becomes “Committed Accessories”

The guideline for restyling the METALBOTTONI range over the past two years has been the recent implementation of the NO IMPACT corporate sustainability protocol, which has just acquired a new “dress”, associated with the following pay-off: “Committed Accessories”. It is a way of underscoring the constant green development of the company over the past few years, in terms of process and product: use of recycled raw materials, development of finishing without chemicals, implementation of processes which today have allowed to reduce electricity and water consumption to almost zero.

Moreover the range of NO IMPACT proposals for this season has expanded to include not only new metal finishing but also leather label completely made from processing scrap, thus establishing Metalbottoni as “partner for branding elements” also in terms of sustainability. Pure Made in Italy and constant expansion of collections towards sportswear The great skill in metal processing, which for sixty years now has characterised the top-of-the-range quality of METALBOTTONI products, is now combined with constant research work conducted by our in-house Style Office, resulting in new collections which are more and more in line with the trends emerging from major trade fairs. Maintaining a presence on strong markets (central Europe, Northern Europe and United States), increasing the depth of segments and intercepting new ones. This is the main goal also chosen for the Première Vision Accessories Exhibition where, alongside the autumn-winter 2019/2020 collections, there will be a preview of VÀNITA, the new collection dedicated to leatherwear and more.

METALBOTTONI is proving to be one of the most dynamic companies in the accessory industry.

Over the past two years, in fact, it has introduced numerous product and process innovations, aiming at increasing its range especially as regards sportswear accessories. This trend was driven by a substantial increase in demand by read-to-wear and luxury brands in the past two seasons, and today it means new proposals which account for 35% of the range for METALBOTTONI. New collections have been presented in the past two seasons expressly dedicated to the sportswear world, namely GRAVITA, the first line designed by the company for pressure buttons, and MÀRYA, the new beachwear collection. Also the line called LABORA, the classic collection of accessories for fashion and ready-to-wear has been constantly enhanced with proposals combining style and technical performance. This mix of fashion and sport elements is increasingly evident in the company’s product range, for example in the combination of different materials, using metal with nylon or other resins to create new and unique accessories.

Vànita: beyond leatherwear, a world of accessories

The meeting between fashion, luxury and sportswear has produced VÀNITA, the brand new collection which presents a new approach to accessories dedicated to leatherwear, from an allround perspective from luxury to sportswear. Developed starting from solid product research by the company’s in-house Style Office, VÀNITA is a true meeting of styles and elements, a combination of high product standards with unique elegance. This line introduces one-of-a-kind visions for accessories, exploring highly original pathways dedicated to the world of leather. The VÀNITA proposal ranges from accessories for leatherwear and small leatherwear, to those for shoes, bags and the sportswear worlds. There are two main lines within this collection: one is expressly designed for the world of luxury, the other has a more technical and sporty approach. A true mix between artisan metal processing, based on the great METALBOTTONI expertise in this sector, and “ingredients” such as nylon, rubber finishes or innovative 3D processing, which are often combined together.

“Our goal is to offer an increasingly comprehensive range which allows us to explore new segments on the markets where we are present” - says Gregorio Valli, CEO and President of METALBOTTONI S.P.A – “a ‘recipe’ which should be able to integrate our unmatched product expertise with a constant expansion of our range and continuous implementation of our pathway towards corporate responsibility and sustainability”.

Because aircraft engine noise contributes to environmental noise around airports and populated cities, the aerospace industry has been working on new aircraft designs that will emit less noise so they can meet the ever-increasing requirements imposed on the industry to reduce noise pollution. Shielding and absorbing aircraft engine noise at the source represents one of the most effective ways to address this issue.

Hexcel, a global leader in advanced composite technology, has been at the forefront of acoustic technology development with its Acousti-Cap® broadband sound-reducing honeycomb, which enables engine designers to reduce the noise from takeoffs and landings yet without adding significant weight to the aircraft.
 
“Hexcel has continued investing in the evolution of Acousti-Cap® product technology to improve performance and reduce cost,” said Imad Atallah, Group Product Manager for Honeycomb at Hexcel. “Collaboration with industry leaders, including NASA and Boeing, has been key to that development,” he added.
 
The 2DOF (Two Degrees of Freedom) honeycomb core acoustic liner was introduced in 2008 and was subsequently adopted and installed on the Boeing 787 Dreamliner inlet, the Boeing 747-8 inlet and transcowl, and more recently on the Boeing 737 MAX inlet. This success enabled continued technology development and evolution in MDOF (Multi-Degrees of Freedom) where the acoustic septum is inserted in the honeycomb cell at different heights, as well as having two septums in honeycomb chambers. This type of technology allows for improved acoustic attenuation at a broader frequency range, as well as increased absorption.
 
“Hexcel’s Acousti-Cap® technology has shown great performance benefits over competing technologies from the beginning” said Clark Smith, Director of Technology -- Core Products at Hexcel. “We have continued to improve the technology through taking advantage of the single cell treatment concept, by adding capability that the industry was looking for,” he added.   
 
Hexcel’s latest Acousti-Cap® technology was recently tested in a joint NASA-Boeing flight test on a B737 MAX test platform, and the results beat expectations as reported by Aviation Week. Collaboration between Hexcel and NASA over several years on the development of MDOF technology led to the successful test results on this latest flight test.
 
The ability to attenuate a broader noise frequency range and increase acoustic absorption with the Hexcel liner has allowed an optimized design of the overall inlet that reduces drag and improves noise attenuation. Hexcel continues to invest in acoustic liner technology and is proud of the positive results of this NASA-Boeing flight test.

The Aachen Center for Integrative Lightweight Production (AZL) of RWTH Aachen University is installing a new ENGEL injection molding system in its technical center. Engel Deutschland GmbH – in cooperation with the ENGEL Centre for Lightweight Composite Technologies in Austria – will install the 2-component injection molding system with turning plate and 17,000 kN clamping force in 2019. This machine setup is the basis for further developments of efficient inline-combination technologies using different kinds of polymer performance materials.

The ENGEL injection molding system will enable innovative combinations of already established fiber-reinforced plastics (FRP) processes and the development of new individual processes. The focus is on increasing resource efficiency in lightweight production. With the new equipment, new research and development initiatives can explore the more efficient use of materials, which are eventually the key to the mass production of lightweight components. The research will address multi-material systems, continuous processes, process chains as well as self-optimizing processes.

Dr.-Ing. Michael Emonts, Managing Director of the Aachen Center for Integrative Lightweight Production (AZL) is looking forward to realizing new innovative lightweight production process with the new injection molding system: “This new injection molding system offers us as specialists for lightweight production technology in cooperation with the injection molding experts of the Institute of Plastics Processing – the IKV – the opportunity to establish hybrid processes for industrial lightweight applications. The system will expand our existing machinery in the AZL Technical Center and will be available as an important platform for lightweight production research at RWTH Aachen University.”

Being a Partner of the AZL, ENGEL has already been working closely with the AZL for many years as a Partner Company of the AZL Partner Network. Dr. Stefan Engleder, CEO of the ENGEL Group, emphasizes the importance of close collaboration with technical universities and especially with the AZL: “The AZL provides great conditions for industry-related research activities in the field of lightweight composites as it is characterized by a strong interdisciplinary approach. It benefits from the great infrastructure and the collaboration with well-known institutes of the RTWH Aachen University. ENGEL is looking forward to working together with the AZL on developing efficient lightweight composite mass production processes.”

In addition to the numerous composite and lightweight equipment at the RWTH Aachen Campus, the AZL Technical Center comprises large-scale equipment for the development of processes for lightweight production, such as a composite press from Schuler Pressen GmbH with 18,000 kN clamping force.

With an investment in an Innovation Center with testing labs and additional production facilities, Carl Meiser GmbH&Co KG gives a clear statement to it’s location in Albstadt in Central Europe. As well this underlines the know-how and the motivation of the whole team. The constructions were already launched. The first buildings for production and a part if the Innovation Center will be ready end of this year. State of the art offices and social facilities will be ready to move in mid of 2019.

“After our suffered setback with the fire in our production facilities in November 2017, this investment will move us much more forward and will give us the motivation to offer our customers even better and more innovative service and products. In long-term view this will creates the base for further growth”, says Jens Meiser CEO of Carl Meiser GmbH&Co.KG. During the last months we already invested in production technology and machines. During the last weeks we changed the complete production organisation to reach a lean product flow.

As well Meiser expanded it’s apprenticeship programme during the last years. At the moment we apprentice new staff members in three different education programmes. It is planned to add a fourth in management in future.

The company Carl Meiser GmbH&Co.KG with it’s brand „MEISER – Know How in textiles“ delivers to the high end underwear and lingerie industry as specialised dyehouse for knitted fabrics. With the brand “NOPMA technical textiles” the company acts as a fast growing development and production partner for the aviation, automotive and furniture industry as well the protection fabric industry. For this industries coated fabrics are developed and delivered to the markets. “In this sector we grow continuous during the last years. We are convinced that our investment in the Innovation Center will support this growth next to our first presence as exhibitor on the fair Techtex in 2019”, says Jens Meiser.

In the approval phase the company was supported by the city of Albstadt in all necessary questions. Fast and possible solutions were found. This shows the Mittelstands-friendly climate in this region in south Germany. The invest is supported by the national programme “Spitze auf dem Land” by the country of Baden-Württemberg and the EU.

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.