From the Sector

The Lenzing Group, a provider of regenerated cellulose fibers for the textile and nonwoven industries, continued to improve its business performance in 2024 despite the expected slow market recovery. While Lenzing was able to significantly increase its sales volumes, the price level remained below that of the previous year. Logistics costs have risen significantly, and raw material and energy costs also remained high.

Revenue grew by 5.7 percent year-on-year to EUR 2.66 bn in 2024, mainly reflecting a higher level of revenue generated from fibers (+10 percent). The positive effects of the holistic performance program were the main factor driving the operating earnings trend. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 30.4 percent year-on-year to EUR 395.4 mn in 2024. The EBITDA margin increased from 12.0 percent to 14.8 percent. The operating result (EBIT) amounted to EUR 88.5 mn (compared with minus EUR 476.4 mn in 2023) and the EBIT margin stood at 3.3 percent (compared with minus 18.9 percent in 2023). The result before tax (EBT) amounted to minus EUR 42.0 mn (compared with minus EUR 585.6 mn in 2023).

Outlook
The IMF recently slightly upgraded its growth forecast for 2025 to 3.3 percent, but emphasizes the continued high extent of variation between regions as well as the high level of uncertainty. The latter is mainly due to geopolitical tensions, increasing protectionist tendencies, and a potential return of inflation.

In times of uncertainty, consumers are remaining cautious and thrifty, which is exerting a negative impact on consumer sentiment and on their propensity to spend.

The currency environment is expected to remain volatile in the regions relevant to Lenzing.

In the trend-setting market for cotton, analysts anticipate a slight increase of stock levels to around 18.7 mn tonnes in the current 2024/2025 harvest season, following a reduction of 0.9 mn tonnes in the previous season, according to preliminary estimates.
Earnings visibility remains limited overall.

Lenzing is still ahead of schedule with the implementation of the performance program. The company expects that the measures will also contribute to further earnings improvement in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group expects EBITDA to be higher in 2025 than in the previous year.
In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also the further expansion of its market leadership in the sustainability area.

Demand for high performance solutions for bottle-to-bottle recycling is increasing worldwide. In view of this trend, the specifications for PET recycling machines to handle higher capacities are also growing. With VACUREMA® technology, EREMA offers a system that enables throughputs of up to six tonnes per hour.

"While the bottle-to-bottle market initially tended towards 3-tonne machines, over the past three years we have been seeing increasing demand for PET recycling solutions with throughputs in excess of three tonnes per hour," says Christoph Wöss, Business Development Manager for the Bottle segment at EREMA. In total, a dozen VACUREMA® machines with throughput capacities of four to six tonnes have been installed and commissioned worldwide since 2020. "Together, these large recycling machines produce almost 350,000 tonnes of rPET per year, which is a clear sign that this order of magnitude is now commonplace in the industry," adds Christoph Wöss.

With VACUREMA® technology, EREMA offers a proven system for throughputs between 600 and 6000 kilograms per hour. This technology achieves impressively efficient decontamination and gentle IV treatment and fulfils the strict requirements of the European and North American food safety authorities. Even the basic version produces food-grade rPET, providing the basis for a wide range of end applications. Whether the pellets are then used with SSP for IV adjustment for bottle-to-bottle or high IV applications, an additional upstream vacuum treatment enables direct connection to preform production, or the material is processed inline into sheets or fibres, the VACUREMA® is a versatile all-rounder with food-grade certification.

Advanced VACUNITE® technology for the highest rPET quality
Applications with especially high material quality requirements are covered by advanced VACUNITE® technology. It combines the proven VACUREMA® system with integrated vacuum-assisted SSP in a nitrogen atmosphere. This combination further optimises the material properties and significantly reduces the yellowing of the pellets, which is an important quality factor in bottle-to-bottle recycling. What is more, the closed nitrogen cycle and optimised process control ensure even lower nitrogen consumption, and ultimately, a particularly efficient and environmentally friendly process. VACUNITE® technology is available on machines for throughputs of up to 2500 kilograms per hour that feature particularly low energy consumption and a compact design.

Order intake was significantly higher than in the previous year at CHF 725.5 million (2023: CHF 541.8 million), representing an increase of 34%. This was the fourth consecutive quarter of year-on-year growth. An initial market recovery was visible compared with the previous year. As expected, the Rieter Group closed financial year 2024 with lower sales of CHF 859.1 million (2023: CHF 1 418.6 million) and thus remained 39% below the prior year. Despite significantly lower sales, an operating result (EBIT) of CHF 28.0 million (2023: CHF 104.8 million) and thus a solid EBIT margin of 3.3% (2023: 7.4%) was achieved.

Sales by division
The Machines & Systems Division posted sales of CHF 424.9 million, a decrease of 56% compared with the previous year (2023: CHF 965.0 million). In the Components Division, sales declined to CHF 247.6 million, down 7% from the same period of the previous year (2023: CHF 266.2 million). The After Sales Division reported sales of CHF 186.6 million, comparable to the previous year (2023: CHF 187.4 million).

Order backlog
At the end of 2024, the company had an order backlog of about CHF 530 million (December 31, 2023: CHF 650 million).

EBIT, net profit and free cash flow
Profit at the EBIT level in the year under review was CHF 28.0 million (2023: CHF 104.8 million), which represents an EBIT margin of 3.3% (2023: 7.4%). Despite significantly lower sales, a solid EBIT margin was achieved. This is mainly due to the consistent implementation of the measures set out in the “Next Level” performance program. Rieter closed the 2024 financial year with a net profit of CHF 10.4 million (2023: CHF 74.0 million).

Free cash flow amounted to CHF 14.1 million (2023: CHF 118.7 million). Net debt increased due to new lease liabilities in connection with the Campus in Winterthur to CHF 230.3 million (2023: CHF 191.2 million).

The equity ratio as of December 31, 2024, rose to 33.7%, mainly due to positive currency effects and lower net working capital (previous year’s reporting date 28.8%).

Dividend
The Board of Directors proposes to shareholders the distribution of a dividend of CHF 2.00 per share for 2024 based on the positive free cash flow of CHF 14.1 million and the improved equity ratio of 33.7%. This corresponds to a payout ratio of 85.8%.

Sustainability
Rieter has a clearly defined sustainability strategy that is closely linked to the Group strategy. Through the Science Based Targets initiative, Rieter made a commitment in 2024 to define company-wide emission reduction targets for the year 2040, which are consistent with scientifically-based net-zero goals.In the 2024 Annual Report, the report on non-financial matters shows the progress Rieter has made in the areas of environmental, social and corporate governance.

Outlook 2025
Rieter expects a challenging first half in 2025 with regard to sales volume and a stronger second half-year depending on the further market recovery. As a consequence, Rieter anticipates a sales volume at the previous year’s level for the full year 2025. Despite this exceptionally low sales level, Rieter anticipates a positive EBIT margin between 0% to 4% for the year 2025.

Beaulieu Fibres International is exhibiting its next-generation sustainable fibre solutions for high performance nonwovens in various industries at IDEA25 in Miami Beach end of April.

“IDEA25 is at the intersection of nonwoven materials and sustainability, with a focus on innovation and research to address environmental challenges and new opportunities. With our Sustainable Fibres Program, we offer low carbon, recyclable and circular solutions where performance and sustainability go hand in hand, bringing value in co-design and TCO performance,” said Maria Teresa Tomaselli, General Manager, Beaulieu Fibres International.

Self-reinforced PP fibres for fully recyclable automotive composites
The company will be presenting its comprehensive range of polypropylene (PP) bonding fibres designed for thermoplastic lightweight composites and automotive interior fabrics. These fibres assist car manufacturers and OEMs in meeting stringent performance, cost-efficiency, and sustainability standards. Beaulieu’s PP fibres are engineered to enhance the mechanical, thermal, and functional properties of composites while reducing vehicle weight.

Fibres for high performance liquid and air filtration
Beaulieu has set new performance standards for the fast-growing air and liquid filtration industry rolling out its full range of MONO and BICO fine-medium count fibres, as an outcome of its investment into R&D efforts to promote staple fibres in the field of high efficiency filtration.

In addition to its existing portfolio of PP fibres for liquid filtration, compliant with FDA and European food contact regulations, Beaulieu is launching a new bicomponent fibre range in PET/PE, PP/PE for high loft filtration media and fine count mono PP fibres for tribo-electric charged air filter media.

The fine count mono fibres are customized according to the line specifics of the nonwoven producer and guarantee up to 20% higher filtration efficiencies for nonwovens in combination with state-of-the-art acrylic counter fibre compared to standard PP fibres used in this application. Typical applications are air handling units in larger buildings and residential furnaces.

Premium outdoor PP fibres for resilient, weather-resistant crop protection solutions
Engineered for superior mechanical strength and resistance to environmental stress factors, these fibres enhance durability in needle-punched fabrics, ensuring long-lasting protection in the field. Their advanced UV stabilization prevents degradation from prolonged sun exposure, extending the lifespan of crop covers, while their hydrophobic properties repel water, reducing moisture-related damage and maintaining breathability.

Ultrabond, design for recycling
Discover UltraBond innovative bonding staple fibres that replace the need for chemical binders. They open a path to create 100% polypropylene (PP) needlepunched fabrics which meet the same performance requirements as traditional constructions, while reducing end-of-life environmental impact.

The 100% polyolefin-based needlepunched fabrics are fully recyclable, reducing waste generation and creating high value PP recycled products as new materials. Furthermore, the sustainable fabrics are produced with an improved Total Cost of Ownership and with a significant ecological footprint reduction.

Beaulieu strengthening its position in the hygiene market
With a full portfolio already serving the hygiene sector, Beaulieu is focusing on next-generation speciality bicomponent solutions designed to enhance softness, processability, and sustainability in absorbent hygiene products.

Hypersoft fibres are specifically engineered for topsheet applications in direct contact with the skin: 25% improvement in softness compared to standard reference fibres while maintaining optimal processability has been achieved.

Meralux is a bicomponent trilobal fibre that improves nonwoven materials by providing better opacity, comfort, and absorption. It also promotes sustainability by saving raw materials and reducing carbon emissions by up to 60%.

AkzoNobel has announced the nomination of Dr. Hans-Joachim Müller to the company's Supervisory Board. The appointment will be put to shareholders for approval at the Annual General Meeting on April 25, 2025.
 
Dr. Müller is currently Chair of the Supervisory Board of TIB Chemicals AG and a member of the Supervisory Board of Lanxess AG.
 
At the AGM, three Supervisory Board members will retire having completed their tenures: Patrick Thomas, who first joined in 2017 and was member of the Audit Committee; Dick Sluimers who was first appointed in 2015 and served as Chair of the Remuneration Committee; and Byron Grote, Deputy Chair of the Supervisory Board and Chair of the Audit Committee, who has been a Supervisory Board member since 2014.
 
Added Noteboom: “We'd like to sincerely thank Patrick, Dick and Byron for their outstanding contribution and many years of invaluable service. They all played an important role during a period of great change for the company, helping to shape the way forward. We wish them all the best for the future.”
Commenting on the nomination, Ben Noteboom, Chair of AkzoNobel's Supervisory Board, said:
“With Hans-Joachim joining, we look forward to continuing to create long-term value for all our stakeholders. He brings a wealth of knowledge in science and experience in the chemicals industry. We wish him every success in his new role.”

Ahead of the Annual Geneal Meeting of listed company Lenzing AG to be held on April 17, 2025, the Nomination Committee has revised the future composition of the Supervisory Board. Cord Prinzhorn, the current Supervisory Board Chairman is stepping down from the Supervisory Board with the end of his mandate, to focus on his existing and new engagements within B&C Group going forward.

Patrick Lackenbucher, Managing Director of B&C Group, has been nominated for election as a new member of the Supervisory Board, and is designated to take over the role of Chairman of the Supervisory Board on an interim basis. Mr. Lackenbucher has supported the company throughout various key strategic and financial projects over the past 15 years.

Designated Supervisory Board Chairman Patrick Lackenbucher sees the company well positioned for the future: “Both long-term core shareholders, B&C and Suzano, have a strong commitment to the enhancement of Lenzing’s competitiveness as a global market leader in sustainable cellulosic fibers. The company is addressing the continued competitive market environment with a holistic set of measures, that are already yielding positive results and will be pursued further consequently. Profitability is vital for Lenzing to sustain in the face of global competition over the long-term and to further invest in new products and markets. I am looking forward to working together collaboratively with the entire Lenzing Managing Board and Supervisory Board.”

Rohit Aggarwal, CEO of Lenzing AG comments: “Cord Prinzhorn has accompanied Lenzing with great confidence through the difficult environment over the past years and has played a key role in initiating revenue and cost initiatives, which have shown first positive effects in recent quarters leading to revenue, margin and cash flow enhancement for the company. On behalf of the entire Managing Board, I would like to thank him for the excellent collaboration, and I look forward to our future collaboration with the designated Chairman Patrick Lackenbucher, who brings many years of experience and extensive knowledge with Lenzing to the table.”

Besides Patrick Lackenbucher, Leonardo Grimaldi is proposed to be newly elected to the Supervisory Board. Mr. Grimaldi is Executive Vice President and Management Board member of Lenzing’s core shareholder Suzano S/A and will assume the Supervisory Bord mandate from Marcelo Bacci, who has left Suzano. He is an expert in the global pulp market and, among others, also acts as Supervisory Board Chairman at Brazilian port operator Portocel as well as a Supervisory Board member at Veracel Celulose S/A.

Cord Prinzhorn comments: “After four years on the Supervisory Board of Lenzing AG, my current mandate is coming to an end, and I will now concentrate on other existing and new engagements going forward. During my time as Supervisory Board Chairman we have managed to successfully complete important strategic investment projects in Brazil, Thailand and China, to reduce costs as well as financial debt, and at the same time to expand Lenzing’s position in this challenging market environment. I would like to thank not only the members of the Supervisory Board and the Managing Board but also, and above all, the employees of Lenzing, who have made a significant contribution to the success of these strategic projects.”

Cord Prinzhorn will remain Supervisory Board Chairman until the conclusion of the 81st Annual General Meeting on April 17, 2025. The election of Patrick Lackenbucher as Supervisory Board Chairman is planned for the constituting Supervisory Board meeting on the same day directly after the Annual General Meeting.

The 2nd edition of Best of Bangladesh in Europe is set to take place on April 17-18, 2025, at Beurs van Berlage in Amsterdam. Organized by Bangladesh Apparel Exchange (BAE) and powered by PDS Limited, the event is held in association with The City Bank PLC, Bangladesh, and KDS Group, with the support of the Ministry of Foreign Affairs (MoFA) and Bangladesh Investment Development Authority (BIDA).

Visitors will have the chance to discover 50 leading companies across 8 industries, each presenting innovative solutions in sustainability, circularity, and transparency. Across the two days, the event will feature a grand opening ceremony, insightful panel discussions, dynamic exhibitions, and inspiring fashion shows, offering a comprehensive glimpse into Bangladesh’s evolving business landscape.

The event will also feature 40+ global speakers and expects to welcome over 1,500 participants, making it a landmark platform for meaningful dialogue, collaboration, and partnership building.

Exhibitors: 4A Yarn Dyeing Ltd, Brain Station 23, BJIT Group, Bondstein Technologies Ltd, City Bank PLC, Bangladesh, Centrotex Ltd, Cyclo, Delmas Apparels Pvt Ltd. Designer Fashion Ltd. Fakir Group, KDS Group, Knit Asia Ltd, Leatherina Pvt Ltd, Mapped In Bangladesh (MiB), Nourish Feeds Limited, Noize Jeans, Paddock's Jeans, Pacific Jeans Ltd, PDS Limited, Pacific Knitex Ltd. Paragon Group, Reverse Resource, Rising Group, Shin Shin Apparels Ltd, Shangu Tex Ltd. Turjo Tex Ltd, Tarango.

A virtual exhibition retracing the history of the Italian textile machinery industry—this is The Heritage, the website created by ACIMIT, the Association of Italian Textile Machinery Manufacturers, and Italian Trade Agency, with the financial support of the Italian Ministry of Foreign Affairs and International Cooperation.

The Heritage is the digital continuation of the exhibition event showcased at ITMA 2023 Milan, the world’s leading trade fair for the textile machinery sector. It represents the digital evolution of a photographic journey that was highly appreciated by numerous national and international visitors during the event.

Thanks to contributions from many textile machinery companies, The Heritage presents over 100 years of history of the Italian textile machinery industry through a fascinating gallery of images. An immersive and engaging experience, it narrates the evolution of Italian manufacturing from the past century to the present day. The website is divided into various sections: Machineries, Entrepreneurs, Factories, World, Companies, Exhibition and ACIMIT. Visitors can explore these different areas, discovering drawings and photos of machinery models that have marked the history of individual companies, Italian entrepreneurs attending trade fairs, sector events and vintage images of production plants.

Marco Salvadè, President of ACIMIT, commented on the initiative: “The main objective of the exhibition held at ITMA 2023 and consequently of the website The Heritage is to give voice, through the lens of photographs and corporate testimonies, to the history, values, and technological evolution of the Italian textile machinery industry. It is an evocative and engaging journey,” Salvadè added, “that tells the story of how Italian manufacturing has evolved over time, from the past century to today. With nearly 300 companies operating in the sector, Italy has become a world leader and continues to look to the future, drawing strength from a history marked by widespread expertise and continuous innovation.”

However, The Heritage is not intended to be the conclusion of the photographic journey presented at ITMA 2023. Rather, it is envisioned as a shared virtual space, continually enriched by contributions from companies providing images that testify to the never-ending story of Italian textile machinery industry.

The LYCRA Company, a global leader in developing innovative and sustainable fiber and technology solutions for the apparel industry, showcased samples made with bio-derived LYCRA® EcoMade fiber at Performance Days in Munich. When it launches commercially later this year, this highly anticipated fiber will be made from annually renewable Iowa field corn to help reduce the environmental impact of apparel.

Bio-derived LYCRA® EcoMade fiber will be the world’s first large-scale commercially available renewable elastane. It delivers equivalent performance to the original LYCRA® fiber and is a one-to-one replacement with no re-engineering of fabrics, processes, or garment patterns required. The product contains 70 percent renewable content and can potentially reduce the carbon footprint of LYCRA® fiber by up to 44%*.

"Bio-derived LYCRA® EcoMade fiber seamlessly blends sustainability with the lasting comfort, fit, and performance consumers desire," said Nicolas Banyols, chief commercial officer of The LYCRA Company. "This breakthrough innovation also helps our customers as they work towards their own sustainability goals."

LYCRA® brand returned as the presenting sponsor of the Bodywear Collective, located across from its stand. Inside the exhibit, the Innovation Zone featured tunnels displaying activewear, shapewear, underwear, swimwear, and seamless garments crafted from high-performance fabrics sourced from leading global mills. Advanced stretch solutions from the LYCRA® ADAPTIV, LYCRA FitSense®, LYCRA® SPORT, and LYCRA® XTRA LIFE™ brands enhance the collection.

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber to finished sewn products, issued the following statement March, 7 from President and CEO Kim Glas regarding President Donald Trump’s one-month suspension of tariffs for qualifying imports under the U.S.-Mexico-Canada Agreement (USMCA):

“We sincerely thank President Trump for pausing the 25 percent penalty tariffs on qualifying imports from Mexico and Canada under the USMCA trade deal for one month, while all parties continue to negotiate a deal to address his administration’s concerns over illegal immigration and fentanyl trafficking. We urge an expeditious resolution for all the parties to ensure the vitality of the U.S. textile industry.

“Under USMCA, the U.S. textile and apparel industry has formed a vital coproduction chain with Mexico and Canada that supports 1.6 million workers and generates $20 billion in two-way trade. It is by far the largest export region for American textile producers, representing $12.5 billion in combined U.S. exports – 53 percent of our total annual exports. U.S. textile inputs routinely come back as finished products to the United States under the trade agreement.

“As such, imposing tariffs on imported goods that comply with the USMCA would only serve to harm a key U.S. manufacturing sector that contributes significantly to the U.S. economy and workforce. It would also adversely impact two key trading partners and a North American coproduction chain that competes directly with China and Asia. In addition, it would further undermine the U.S. industry’s ability to make critical products for the U.S. military if this critical production chain were harmed.

“We appreciate President Trump’s delay in these tariffs and urge a more measured approach as well as a negotiated solution that at the very least exempts qualifying USMCA goods from penalty tariffs and closes the de minimis loophole once and for all.

“We look forward to working with President Trump and his administration on his trade agenda aimed at bringing jobs back to the U.S. and will continue to provide input on a plan to build a stronger, more vibrant domestic supply chain.”