From the Sector

AFFIX Labs’ durable semi-permanent surface coating Si-Quat, that is proven to kill 99.9% of bacteria and viruses, including SARS-COV-2, will be helping to make public transport safer as people around the world begin getting back onto buses and trains.

Si-Quat helps to prevent cross contamination with a durable layer of polymerized active ingredient that binds to walls, handles, furniture, and other key touch points, staying in place for up to 12 months and killing 99.9% of viruses and bacteria that come into contact with the treated surface. The coating has been tested and certified to be effective against bacteria, viruses, and fungi, and has passed the rigorous EN45545-2 HL3 flammability norm for trains and REG118.3 for busses.

Kiel has been manufacturing seating for public transport globally for more than 75 years and will be offering Si-Quat to clients as a new solution to protect travellers on their transport networks. With Si-Quat already registered on several continents a quick roll out is truly achievable.

The dates are set: IFFT/Interior Lifestyle Living is welcoming exhibitor registration for its 2021 edition, to be held from 18 – 20 October 2021 in the South Halls of Tokyo Big Sight. The dedicated fair for interior design is once again set to attract not only retail buyers but also visitors from design and architecture offices, commercial facilities, and other contract businesses. The 2019 edition welcomed 352 exhibitors from 14 countries and regions as well as 16,016 visitors from 34 countries and regions, receiving much positive feedback for its increased focus on contract business.
 
IFFT/Interior Lifestyle Living 2019
Returning after a hiatus in 2020 due to the COVID-19 pandemic, IFFT/Interior Lifestyle Living will once again create opportunities for exhibitors to meet new clients and expand their businesses. Messe Frankfurt Japan Ltd is working to put all of the appropriate safety and hygiene measures in place to protect participants during the fair period, and prevent the spread of COVID-19.
 
New ETHICAL zone added to satisfy consumer demand
A newly introduced ETHICAL zone will help industry players explore the themes of sustainability and ecology, which are continuing to gain traction in the interior design market. The zone focuses on environmental protection, up-cycling, fair trade, products that support people with disabilities, organic products, local production for local consumption, and more. Furniture production from recycled forest materials will also be a focus of the zone, which will be promoted in the run up to the fair through sector-specific media channels. This will include dedicated promotional activities targeting ethically driven retailers and restaurants.
 
A variety of booth sizes to accommodate exhibitors’ needs
In response to requests from exhibitors who showcase smaller items, a new booth size has been added for 2021. Measuring 6.3 sqm (width 3m x depth 2.1m), the new booth option is one size smaller than the existing 9 sqm booth, adding more choice for exhibitors
 
Dedicated lifestyle themed zones
Proving popular amongst trade buyers during previous editions, ‘CREATIVE RESOURCE’ is a zone devoted to innovative interior materials, as well as parts and services for interior design and home remodelling. Products featured at the zone include wallpaper, floor coverings, paints and related materials. First introduced in 2012, the zone has grown in stature as the destination for the likes of manufacturers, architects, designers and developers to find inspiration.
 
The fair’s zoning encompasses a variety of different product categories and themes. This not only simplifies the sourcing process for trade buyers, but it also maximises business exposure for exhibitors. Day-to-day lifestyle products – both stylish and functional – will be displayed in the ‘HOME’, ‘ACCENT’ and ‘EVERYDAY’ zones with a focus on living spaces, accessories and household items respectively.
 
Moreover, catering to the world of convenience and home cuisine, an array of pragmatically-designed packaged food will be presented at 'FOODIST', while innovative dining items will be gathered at the ‘KITCHEN LIFE’ zone.
 
Highlighting high quality local craftsmanship, designs from Japanese artisanal artists with a modern touch will be located in the ‘JAPAN STYLE’ zone. The latest designs from highly acclaimed international brands will be displayed too, in the ‘MOVEMENT’ area, while work from up-and-coming young designers will appear at the ‘TALENTS’ and ‘NEXT’ zones.
 
About IFFT/Interior Lifestyle Living
IFFT/Interior Lifestyle Living is held annually in fall and is the sister fair of Interior Lifestyle Tokyo held in spring, which is based on Ambiente, Messe Frankfurt’s largest and most important international consumer goods fair, and Heimtextil, the biggest international home and contract textiles fair. With the synergetic effects of these leading global trade fairs in the high-end interior market, and with Messe Frankfurt’s global network, IFFT/Interior Lifestyle Living is a key platform for professionals, buyers, architects and those engaged in domestic and international contract business.

• Next Jec World Will Take Place From March 8 To 10, 2022

The continued impact of the Covid-19 pandemic unfolding throughout 2021 has forced the JEC World team to reexamine the possibility of holding the next edition of JEC World this year. Thus, after thorough consultation of clients and partners, the JEC World team has decided to postpone the next edition of JEC World to March 8 to 10, 2022.

Amidst growing concern among our exhibitors and partners surrounding the critical situation of the Covid 19 restrictive measures and other limitations in place in many countries, the JEC World team has decided to work on a new timeline to hold the next edition of the event in the best conditions in 2022. Thus, JEC World exhibitors were asked to respond to a survey offering two new dates to determine which one would suit them the most. It appeared that 89% of respondents favored holding the next JEC World session from March 8 to 10, 2022.

“The coronavirus pandemic situation has taken the central stage, so in light of the current situation, it would not be possible for us to satisfy our customers’ requirements for such an international trade fair as JEC World in June. We truly regret having to make this difficult decision once again. However, we are all committed, starting today, to deliver the best JEC World experience to our clients in 2022.” says Eric Pierrejean, CEO of JEC Group. “While waiting for welcoming the international composites community back to Paris in March 2022, JEC Group team is preparing various online Rendez-Vous in June enabling the entire composites community to discover trends and innovations, and to connect″, he added.

The leading composites event will take place from March 8 to 10, 2022, at Paris Nord Villepinte (same venue) and online for a new augmented experience.

As the leading trade show of the composites industry, JEC World will bring together the whole composites materials value chain and professionals from application sectors, experts from the scientific and academic world, associations, and media from more than 112 countries, introducing in 2022 its audience its new digital platform, JEC World Augmented.

“JEC World 2022 and the augmented platform  will bring the international composites community and specialists together to resume business, network, hold business meetings. They will also have the chance to participate in conferences, workshops, and discover the latest composites innovations,” says Adeline Larroque, Show director and EMEA events.

The spring editions of the three fairs – Intertextile Shanghai Apparel Fabrics, Intertextile Shanghai Home Textiles and Yarn Expo Spring – that were due to take place from 10 – 12 March 2021 will be postponed, with a new date to be announced shortly. Messe Frankfurt made the decision along with the co-organisers of the fairs to comply with local authority guidelines.

Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd explained the decision: “In compliance with the Shanghai Municipal Center for Health Promotion’s pandemic prevention and control guidelines for exhibition activities, and after careful evaluation and discussion with relevant stakeholders, we have decided to postpone the three fairs to a later date. We have begun a discussion with the three fairs’ stakeholders as well as the fairground regarding a new date, and aim to hold the rescheduled shows within March to minimise the impact to our exhibitors and buyers and still accommodate their buying needs for the current spring / summer season. While the new dates will be announced shortly, we are grateful in the meantime for the understanding and patience of all those involved.”

Further information:
Intertextile Shanghai Apparel Fabrics
Intertextile Shanghai Home Textiles
Yarn Expo

• Looking to the future – Frankfurt Fashion Week is positioning itself with a consistently sustainable agenda and propelling the transformation of a modern, resource-efficient fashion industry.

The Conscious Fashion Campaign (CFC), working in collaboration with the United Nations Office for Partnerships (UNOP), will be the presenting partner and the Sustainable Development Goals (SDGs) will be a prerequisite for all exhibitors by 2023. And the Frankfurt Fashion SDG Summit by CFC is set to become the leading international conference for sustainability in the fashion world. The future of fashion has begun – and its key players will be coming together in Frankfurt am Main from 5-9 July 2021.
 
Frankfurt am Main, 2 December 2020. Joining forces to improve the fashion industry: Frankfurt Fashion Week is positioning itself as the host of the future of fashion and actively driving forward the transformation towards a future-oriented, more sustainable fashion and textile industry. All decision-makers looking to instigate this change will be coming together in Frankfurt am Main from 5-9 July 2021. The initiators of Frankfurt Fashion Week – Messe Frankfurt and the Premium Group – have achieved a real coup: Conscious Fashion Campaign, working in collaboration with the United Nations Office for Partnerships, will be the presenting partner. Messe Frankfurt will build on its collaboration with the United Nations Office for Partnerships and establish Frankfurt Fashion week as the platform on which to advance the Sustainable Development Goals and help guide the fashion industry into the 'Decade of Action'.
 
“Frankfurt will play host to the whole world. We are seeing a very positive response indeed,” confirmed Peter Feldmann, Senior Mayor of the City of Frankfurt am Main, at today’s digital press conference, before going on to say: “The fact that the initiators are able to rethink the concept of a Fashion Week in such a way is extremely impressive and proves that the fashion industry is correctly interpreting the signs of the present and future. The time has come for value creation and values to be reconciled. Consistent alignment with the Sustainable Development Goals is an important step in this direction.”
 
“Frankfurt Fashion Week aims to play a crucial role in finding solutions for macrosocial challenges and supporting the goals of international politics such as the European Green Deal. The fashion and textile industries are also expected to be climate-neutral by 2050. If we want to achieve this, we all need to pull together. Frankfurt Fashion Week is inviting all initiators and supporters of sustainable concepts and congresses or shows dedicated to sustainability to meet in Frankfurt, partake in discussions and make tangible decisions for the greater good. We will connect the most relevant players and pave the way for a future-proof fashion and textile industry,” says Detlef Braun, CEO of Messe Frankfurt.
 
“Given its global reach, the fashion industry is uniquely positioned to collaborate and engage on the Sustainable Development Goals, in particular on climate action and responsible production and consumption,” said Annemarie Hou, Acting Executive Director of the United Nations Office for Partnerships. “Frankfurt Fashion Week and the Summit will serve as an important platform for education and engagement of the fashion and textile industry in the Decade of Action,” emphasised Ms Hou.
 
The aim of Frankfurt Fashion Week is for all exhibitors, participants and partners to align with the Sustainable Development Goals by 2023. The SDGs will also be incorporated into all formats of Frankfurt Fashion Week. This will help to make the UN’s sustainability goals visible and tangible for the Fashion Week audience, therefore bringing its claim, goals and specific proposals for implementation to an international opinion-forming fashion and lifestyle community. During a one-day Frankfurt Fashion SDG Summit presented by Conscious Fashion Campaign, topics like gender equality, clean water, climate protection, social justice and their significance for a forward-looking fashion industry will be examined in greater depth. Another point on the sustainability agenda: Frankfurt Fashion Week is launching a Sustainability Award for outstanding, innovative, sustainable design, alongside other categories with a global appeal for the fashion and textile industry.
 
"We are committed to setting the wheels of transformation in motion. Not only does the overall mindset have to fundamentally change; the entire industry also needs to have the courage to be transparent and honest. It’s important to see values and value creation as opportunities rather than contentious. We are doing what we do best: connecting the relevant players at all levels. With its ecosystem, Frankfurt Fashion Week will become the enabler. We are creating a platform that will orchestrate industry-wide change. With this as our inspiration, we are also developing our tradeshow formats from a ‘marketplace of products’ to a ‘marketplace of purpose and ideas’,” explains Anita Tillmann, Managing Partner of the Premium Group.
 
A new start in Frankfurt: In summer 2021 the entire fashion industry will be coming to the metropolis on the Main river to inform themselves, be inspired, discuss, negotiate and celebrate. “There’s a huge need to finally meet in person again, to exchange ideas and be inspired. At the same time, digital tools and formats have become an integral part of the fashion industry,” says Markus Frank, Head of the City of Frankfurt’s Department of Economic Affairs and therefore also responsible for its creative industry. “To implement such a future-oriented, all-encompassing overall concept, Frankfurt’s business and creative scenes offer an almost unique concentration of different expertise with its internationally networked agencies, universities and museums. The city’s multifaceted, high-end club, bar and restaurant scene, diverse hotel industry and internationally renowned retail landscape will become the stage for this. This network will be a key factor in the successful implementation of Frankfurt Fashion Week and the way in which it will expand into the public space as a cultural and social happening.”
 
A number of major publishing houses are also showing their commitment to the new Fashion Week in Frankfurt with conferences, events and awards: Textilwirtschaft, the leading professional fashion journal by the Deutscher Fachverlag publishing house, is moving its traditional meeting of the industry’s top decision-makers – the TW Forum, the presentation of the renowned Forum Award, as well as its subsequent conference – from Heidelberg to Frankfurt’s Palmengarten botanical gardens, and will therefore be kicking off Frankfurt Fashion Week on Sunday evening and Monday morning. The Frankfurter Allgemeine Zeitung will be hosting its traditional fashion party for the first time in Frankfurt and publishing a special edition of its FAZ Magazin on Frankfurt Fashion Week. And the ZEIT publishing group is holding its ‘UNLOCK Style by ZEITmagazin’ conference, which was established in 2014, and the ZEITmagazin Fashion Week party in Frankfurt for the first time and will dedicate the whole new issue of ZEITmagazin Frankfurt to Frankfurt Fashion Week. Condé Nast will also be involved in next summer’s Frankfurt Fashion Week with an exclusive event by GQ. And the Burda publishing house will also be represented with various event formats from its lifestyle and fashion brands.There will also be talks with SHINE  Conventions, the organiser of GLOW, about what a mutual collaboration could look like.
 
Frankfurt Fashion Week is also delighted to have the Fashion Council Germany (FCG) on board.  The FCG is theinstitution when it comes to German fashion design. It promotes designers, is committed to gaining more political relevance and strengthens the international visibility and awareness of German fashion. At Frankfurt Fashion Week, the FCG will contribute selected formats, such as its already established Fireside Chat, and a future-oriented accelerator format to support German designers.
 
“What really impresses me about Fashion Week is the whole networking aspect: the creative industries will meet the financial world and sustainability is the common denominator. The Green Finance Cluster is another project that we could link with Frankfurt Fashion Week in the future. This will provide new inspiration in the fashion industry, which will certainly extend way beyond its own horizon of Frankfurt and Hesse. After a very difficult year for the trade fair industry, the concept is an encouraging breath of fresh air,” sums up Tarek Al-Wazir, Hesse’s Minister of Economics, Energy, Transport and Regional Development and Deputy Minister-President of the state of Hessen.

• Anita Tillmann, managing partner, about Premium Group´s January 2021 Events

“These are challenging times – for all of us. On one hand, because we can't meet up in the same carefree way as usual. And, on the other hand, because decisions have to be made based on factors that are out of everyone’s control. Alongside all this, it’s essential that we look to the future with positivity, that we use the time effectively and continue to advance in the face of adversity. This not only affects the trade show and event organisers, but the whole industry.

We have carried out market research and surveyed exhibitors, partners and buyers on the current circumstances. The objective was to obtain a data-based assessment of the current economic situation, a summary of the success of the exclusively digital events, and insights into the requirements of our network with regard to the physical trade shows. Following analysis of the data gathered we have established that there is a personal wish for an event to happen – inclusive of the appropriate hygiene measures – however, this is unfortunately not currently possible from a professional perspective. As long as there are delays to production and constantly changing travel and contact restrictions in place, we cannot put on any trade shows, conferences or events that would meet our demands or the demands of our exhibitors.

We have therefore decided not to hold PREMIUM, SEEK or FASHIONTECH next January. This was an incredibly difficult decision to make. Especially because we didn't want to say goodbye to Berlin without a fitting farewell.

Now, though, it’s about looking forward and concentrating on what is certain: Frankfurt Fashion Week, which we will be staging in July 2021 together with Messe Frankfurt, the City of Frankfurt and the region of Hessen. We have big plans and are working on a new, fresh start – not only for us, but also for all stakeholders in the fashion industry, nationally and internationally.

Another press conference is planned for the end of November, when we shall be introducing new concepts, partners and event formats. Preparations are already in full swing: we are having numerous discussions, sitting in workshops, activating partners, designers, publishers, politics and society so as to get a unique, fully formed event successfully up and running. Expectations are huge – and we intend to satisfy them. We are putting all our energy into this future-focussed project.

With the aim of being able to share our enthusiasm, we are planning a FFW Preview to present the new locations in Frankfurt am Main and the concepts to journalists, brands and retailers at the beginning of next year.

Until then, all we can say is this: stay curious. Stay optimistic. Because even though there won't be any events this coming January, the show does go on. True to form, that means there will be more business opportunities than ever before, along with innovative formats, events and conferences and a fully formed city concept that has never been imagined before.”

• Successful concept to be continued in 2022

For three years now, the Trevira CS joint fair booth, where Trevira, its customers and partners present their new ideas within the framework of an innovative creative concept, has been an established and popular feature of Heimtextil. In 2021, the international trade fair for home and contract textiles is planned to take place from 12-15 January in Frankfurt/Main. However, as a result of the numerous uncertainties brought about by the coronavirus crisis, Trevira has decided that it will not take part next year.

“Messe Frankfurt has shown us its comprehensive hygiene concept and plans and there is no question that their plans fully meet health and safety requirements,” explained Trevira CEO Klaus Holz. “But at Trevira, we are also very much aware of our responsibilities. Our joint booth concept is not only on an extensive scale, but it is also built around the idea of communication. This makes it even more important that we consider the potential risks involved and how they could impact our customers, co-exhibitors, visitors and staff.” Given the uncertainty as to how the situation might develop in the future, Trevira has decided it has no option but to withdraw from next year’s fair and postpone its participation in Heimtextil until 2022. This decision has been made in agreement with parent company Indorama Ventures PCL (Thailand), which has put stringent measures in place to keep its staff and customers safe. As a result, the concern and its subsidiaries are not currently participating in any trade fairs.

At the 2020 Heimtextil, Trevira exhibited together with around 30 of its major Trevira CS customers with a joint booth whose total floor area measured over 2,000 msq. The number of partners exhibiting alongside Trevira has increased steadily over the past three years, and the Trevira display, along with many of the newest flame retardant Trevira CS collections from its customers, has always been hugely popular at the fair, especially in Hall 4.2, where it has continually attracted a very high number of visitors. As a joint booth, it has benefited especially from the vibrant and positive discussions among visitors and exhibitors, together with the various events that accompany the display. Usually, these included a press conference and a party held at the new stand. Trevira’s Heimtextil presence in the past three years has strengthened and expanded the position of Trevira CS as the leading brand for flame retardant home textiles.

CEO Klaus Holz said, “As a regular exhibitor at Heimtextil for many years, we found this decision extremely difficult. We greatly regret that we will not be able to bring our joint booth to Heimtextil next year. However, we plan to return in 2022 with a fair booth offering visitors and partners the high quality they have come to expect of us, with brand new ideas and measures in place to ensure its success”.

As part of its active engagement in the fight against COVID-19, Archroma, a global leader in color and specialty chemicals towards sustainable solutions, started bulk production of a new range of hand sanitizers at its Landhi site in Pakistan in May 2020. The new Kieralon® HS range was developed by the R&D team at the Archroma Center of Excellence in Karachi, in line with the World Health Organization (WHO) recommendations.

Sanitizers are currently in high demand in Pakistan in hospitals, isolation centers, medical institutes and other health care environments, due to the COVID-19 outbreak. The use of sanitizers has also been made mandatory in all factories, offices and public places, driving the demand even higher.

The Kieralon® HS range is being produced in different grades and concentrations to eliminate a broad range of germs, bacteria and viruses, to cater for various healthcare and hygiene requirements. They also include emollients and display non-stick and quick drying effect, for skin comfort.

In April 2020, Archroma announced the introduction in Brazil of Mowiplus® HPC 9600, a new thickener for sanitizing gels, developed to address the global shortage in the thickener traditionally used for sanitizing gels.

Archroma is also actively supporting manufacturers in the production of face masks and medical protective equipment. Its antimicrobial and barrier products in particular are in high demand, and Archroma is making every effort to assist existing and new customers entering this sector by providing technical know-how and support.

The company is supporting producers of packaging & paper who are facing high demand for food packaging as many restaurants have switched to delivery or take-away, as well as for parcels and boxes supporting online shopping.

Mujtaba Rahim, CEO of Archroma Pakistan comments, “Within Archroma we are cognizant of the acute community need for high quality hygiene products that are also comfortable for users, as hand sanitizers tend to be harsh on the skin, so we took on the challenge to develop and start production in record time. The Archroma team in Pakistan won’t rest in fighting the COVID-19 pandemic, and hopes this new product will help to stop the spread of the virus and the suffering that it causes.”

• Members of TMAS – the Swedish textile machinery association – have adopted a range of new strategies in response to the Covid-19 pandemic, aimed at assisting manufacturers of textiles and apparel to adjust to a new normal, as Europe and other regions emerge cautiously from lockdown.

“Many European companies have been forced into testing new working methods and looking at what it’s possible to do remotely, and how to exploit automation to the full, in order to become more flexible,” says TMAS Secretary General Therese Premler-Andersson. “Others have been taking risks where they see opportunies and there’s a new sense of solidarity among companies.

“It’s extremely encouraging, for example, that over five hundred European companies from across our supply chain are reported to have responded to the shortages of facemasks and PPE – protective personal equipment – by converting parts of their sites or investing in new equipment.”

New supply chains

Amongst them are TMAS members of the ACG Group, who quickly established a dedicated new nonwovens fabric converting and single-use garment making-up plant to supply to the Swedish health authorities. From a standing start in March, this is now producing 1.8 million square metres of converted fabric and turning it into 692,000 finished medical garments each month.

“In 2020 so far, we have seen new value chains being created and a certain amount of permanent reshoring is now inevitable,” says Premler-Andersson. “This is being backed by the new funding announced in the European Union’s Next Generation EU plan, with €750 billion marked for helping industry recover. As the European Commission President Ursula von der Leyen has stressed, “green and digital” transitions hold the key to Europe’s future prosperity and resilience, and TMAS members have new solutions to assist in both areas.”

Remote working

Automated solutions have opened up many possibilities for remote working during the pandemic. Texo AB, for example, the specialist in wide-width weaving looms for the paper industry, was able to successfully complete the build and delivery of a major multi-container order between April and May.

“Our new Remote Guidance software now makes it possible for us to carry out some of the commissioning and troubleshooting of such new lines remotely, which has been helpful” says Texo AB President Anders Svensson.

Svegea of Sweden, which has spent the past few months developing its new CR-210 fabric relaxation machine for knitted fabrics, has also successfully set up and installed a number of machines remotely, which the company has never attempted before.

“The pandemic has definitely led to some inventive solutions for us and with international travel currently not possible, we are finding better methods of digital communication and collaboration all the time,” says Svegea managing director Hakan Steene.

Eric Norling, Vice President of the Precision Application business of Baldwin Technology, believes the pandemic may have a more permanent impact on global travel.

“We have now proven that e-meetings and virtual collaboration tools are effective,” he says. “Baldwin implemented a home office work regime from April with only production personnel and R&D researchers at the workplace. These past few months have shown that we can be just as effective and do not need to travel for physical meetings to the same extent that was previously thought to be necessary.”

Pär Hedman, Sales and Marketing Manager for IRO AB, however, believes such advances can only go so far at the moment.

“Video conferences have taken a big leap forward, especially in development projects, and this method of communication is here to stay, but it will never completely replace personal meetings,” he says. “And textile fabrics need to be touched, examined and accepted by the senses, which is impossible to do via digital media today. The coming haptic internet, however, may well even change that too.”

Social distancing

The many garment factories now equipped with Eton Systems UPS work stations – designed to save considerable costs through automation – have meanwhile benefited from the unintentional social distancing they automatically provide compared to factories with conventional banks of sewing machines.

“These companies have been able to continue operating throughout the pandemic due to the spaced nature of our automated plant configurations,” says Eton Systems Business Development Manager Roger Ryrlén. “The UPS system has been established for some time, but planned spacing has proved an accidental plus for our customers – with improved productivity.”

“Innovations from TMAS member companies have been coming thick and fast recently due to their advanced know-how in automation concepts,” Premler-Andersson concludes.  “If anything, the restrictions imposed by the Covid-19 pandemic have only accelerated these initiatives by obliging our members to take new approaches.”

• Since the end of March 2020, COVID-19 has led to very low demand in all Business Groups
• Comprehensive crisis management implemented
• Loss in the mid double-digit million range expected in the first half of 2020
• Plans to introduce short-time working to adjust capacity in Switzerland and Germany
• Strategy will continue to be implemented

Due to COVID-19, a large number of spinning mills have stopped production worldwide. Since the end of March 2020, this has led to low demand for spare parts and wear & tear parts and delays in testing programs during the development of new machines. Customers are postponing investment projects or unable to implement them due to restrictions imposed by national governments. This results in low demand for new machines.

Comprehensive crisis management
Rieter has implemented comprehensive crisis management. Priorities are being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide.
The order backlog of well in excess of CHF 500 million is being processed largely according to plan, despite the existing bottlenecks in the supply chains. Less than 5% of the orders in the order backlog have been canceled.
Rieter has already implemented measures to ensure liquidity and reduce costs. The company has good net liquidity and undrawn credit lines in the mid three-digit million range.
Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level.

Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level. The effects of COVID-19 will place an additional burden on the first half of 2020. Rieter therefore expects sales in the first half of 2020 to be less than CHF 300 million. Despite the countermeasures implemented at the net profit level, this will lead to a loss in the mid double-digit million range.

Plans to introduce short-time working to adjust capacity
Rieter plans to apply for short-time working for the areas with forecasted low capacity utilization at the locations in Switzerland and Germany. The application will be for 40% short-time working in the third quarter of 2020. Talks with staff representatives will begin next week.
As a sign of solidarity, Rieter’s Board of Directors, Group Executive Committee and the senior management will waive 10%-20% of their salaries temporarily.

Implementation of the strategy
In recent years, Rieter has consistently implemented the strategy based on innovation leadership, strengthening the business in components, spare parts and services and the adjustment of cost structures. The company intends to forge ahead with the implementation of the strategy in the coming months, thus strengthening its market position for the time after the COVID-19 pandemic.
The next information on the course of business is planned with the publication of the half-year results on July 16, 2020