From the Sector

The European Union (EU) has upgraded the requirements for the Class 1 Medical Device designation and Hologenix®, creators of CELLIANT®, has met the stricter requirements for this important market. This means that compliant manufacturers can continue to use the CE mark on their EU products containing CELLIANT.

Brand partners simply need to comply with the requirements that Hologenix provides, and do not have to pursue regulations on their own. Regulatory status validates the science and technology behind CELLIANT, a natural blend of bioceramic minerals that absorb body heat and reflect it back as therapeutic infrared energy.

The list of products that are now registered in the EU as Class 1 Medical Devices has grown considerably since 2014 when Hologenix first sought registration and now includes bed blankets, bed sheets, duvets, duvet covers, mattresses, mattress covers, pillows, heat-reflective upper and lower torso garments, therapeutic diabetic socks, compression socks/stockings, support bandages, wraps and limb mobilization/support skin adhesive tape.  

The transition to the Medical Device Regulations in the EU for CELLIANT Class 1 medical devices includes more stringent requirements to demonstrate medical device safety for users, a refined quality management system and detailed technical documents.

The new business unit Oerlikon Luxury showcased at LINEAPELLE a new selection of accessories for the fashion industry.

Oerlikon Riri and Oerlikon Fineparts are the brands under this newly-created BU –part of the Oerlikon Group’s Surface Solutions Division since the acquisition of Riri Group in March. Oerlikon Riri offers zippers and buttons that will continue to be branded Riri and Cobrax respectively and will continue to deliver the guaranteed quality and reliability recognized by the whole industry. Oerlikon Fineparts offers a comprehensive portfolio of metal components and fashion jewels, including the products from the previously known brands Coeurdor, Amom, DMC and CMH.

Leveraging Oerlikon’s technology expertise in advanced and environmentally-friendly coatings, the latest FW 24/25 collection from the Group’s luxury product brand Oerlikon Riri include pieces coated using PVD1 (Physical Vapour Deposition), as well as further specialisation in several materials, including stainless steel.

The Lenzing Group, a leading provider of specialty fibers for the textile and nonwoven industries, has made significant technical improvements to its Purwakarta site (PT. South Pacific Viscose). Lenzing has invested more than EUR 100 million since 2021 to convert existing production capacity to specialty viscose. With the imminent completion of the investment, Lenzing is in a better position to serve the strongly growing demand for specialty fibers.

Lenzing is striving for certification according to the standard of the internationally recognized EU Ecolabel1. The product portfolio would thus include LENZING™ ECOVERO™ branded fibers for textiles and VEOCEL™ branded fibers for nonwoven applications. In the course of these substantial investments, Lenzing has set the goal of significantly reducing emissions at the site. Moreover, the site started to obtain renewable grid electricity and promotes a changeover to biomass in line with Lenzing's goals of reducing carbon emissions per ton of product by 50 percent by 2030 and achieving carbon-neutral production by 2050.

“Demand for specialty fibers with low environmental impacts continues to grow structurally. We see enormous growth potential in Asia in particular. Through our investments in Indonesia and also at other Lenzing sites worldwide, we are in a better position to serve this growing demand. At the same time, we continue working tirelessly to make the industries in which we operate even more sustainable and to drive the transformation of the textile business model from linear to circular,” says Stephan Sielaff, Chief Executive Officer of the Lenzing Group.

adidas and Manchester United Football Club announce the extension of their partnership. Manchester United commenced a historic agreement with adidas at the start of the 2015/16 season, reuniting after 23 years.

The new deal increases the focus on the Manchester United women’s team since their reintroduction in 2018 – continuing Manchester United and adidas’ commitment to drive the women’s game forward.

Manchester United Chief Executive Officer, Richard Arnold said:  
“The relationship between Manchester United and adidas is one of the most iconic in world sport , forged through a shared commitment to style, flair and, most importantly, high performance.

“With its roots in the 1980s, our partnership has been reinvented over the past decade with some of the most innovative designs and technology in sportswear. We are now looking forward to refreshing this powerful partnership again through the remainder of this decade and into the 2030s.”  

Chief Executive Officer at adidas, Bjørn Gulden, said:  
“We are extremely proud to announce the extension of the contract with Manchester United. adidas and Manchester United are two of the most important brands in International Football and it is very natural for us to continue our cooperation. We will combine tradition and innovation to please both the players and the fans. 

• Sales up 1.9% year-on-year to €560.5 million with stable adjusted EBITDA of €88.0 million
• Strong business performance of the Graphite Solutions, Process Technology and Composite Solutions businesses
• Sales and earnings decline at Carbon Fibers due to weakness of wind market
• Impairment at Carbon Fibers of €44.7 million

Despite the increasingly difficult economic environment, SGL Carbon was able to increase sales in H1 2023 from €549.8 million in the previous year to €560.5 million. Adjusted EBITDA (EBITDApre) remained almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected good business performance of the Graphite Solutions business unit and the better-than-expected sales and earnings development of Process Technology and Composite Solutions compensated the drop in demand in Carbon Fibers.

In particular, the Graphite Solutions (GS) business unit contributed to the stable development of the Company with a 15.3% increase in sales to €280.6 million (H1 2022: €243.4 million) and a 20.6% improvement in adjusted EBITDA to €65.1 million (H1 2022: €54.0 million). GS benefited especially from the high demand of the semiconductor industry. The semiconductor and LED market segment now accounts for around 45% of GS revenue (H1 2022: around 35%).

With a 30.9% increase in sales to €64.4 million (H1 2022: €49.2 million) and a significant rise in adjusted EBITDA from €4.1 million to €11.9 million, the business performance of Process Technology (PT) was significantly above the original planning. Composite Solutions (CS) also reported a higher-than-forecast sales increase of 14.4% to €79.6 million in H1 2023 (H1 2022: €69.6 million) and an improvement in adjusted EBITDA of 26.8% to €12.3 million (H1 2022: €9.7 million). By contrast, the business performance of the Carbon Fibers (CF) unit was not in line with expectations, with a 28.9% decline in sales to €125.1 million (H1 2022: €176.0 million) and a 78.4% drop in earnings to €6.1 million (H1 2022: €28.2 million).

An important market segment for the Carbon Fibers business unit is the wind industry. Demand for carbon fibers for the wind industry has declined sharply since the beginning of the year. According to current estimates, the expected recovery in demand in H2 2023 will not materialize. SGL Carbon expects customer demand from the wind industry to pick up in 2024.

As already announced in the ad hoc release of July 24, 2023, an impairment loss of €44.7 million was recognized on the assets of Carbon Fibers as of June 30, 2023.

Results situation
SGL Carbon's adjusted EBITDA (EBITDApre) remained almost stable in a half-year comparison at €88.0 million (H1 2022: €87.9 million). Due to the lack of demand from wind industry, CF's production capacity utilization decreased and idle capacity costs weighed on adjusted EBITDA. By contrast, higher margins from product mix and volume effects in the other three business units had a positive impact on adjusted EBITDA.

Non-recurring items and one-off effects not included in adjusted EBITDA totaled minus €46.9 million in the first half of 2023, of which €44.7 million resulted from an impairment loss in the CF business unit.

In addition to the above-mentioned effects and nearly unchanged depreciation and amortization of €29.1 million (H1 2022: €28.9 million), the decline in EBIT resulted in particular from the impairment loss already described (€44.7 million). After €69.6 million in H1 2022, EBIT amounted to €12.0 million in the reporting period.

Taking into account the slightly improved financial result of minus €15.8 million (H1 2022: minus €16.6 million), consolidated net income for the first six months of the current financial year amounted to minus €10.0 million, compared to €48.8 million in the first half of the previous year.

Net financial debt and equity
To complete its refinancing, SGL Carbon issued convertible bonds with a volume of €118.7 million in June 2023 and drew an existing term loan facility of €75 million in July 2023, which was used together with cash of the Company on July 28, 2023 to repay the corporate bond (outstanding as of June 30, 2023: €237.4 million). Accordingly, cash and cash equivalents increased to €310.5 million as of June 30, 2023 (€227.3 million as of December 31, 2022) and financial debt temporarily increased to €480.4 million (€398.1 million as of December 31, 2022). Net financial debt remained nearly unchanged at €169.9 million as of June 30, 2023 (Dec. 31, 2022: € 170.8 million).

Despite the impairment loss of €44.7 million in Carbon Fibers, shareholders' equity amounted to €565.2 million as of June 30, 2023, only slightly lower than at the end of 2022 (Dec. 31, 2022: €569.3 million). This corresponds to an equity ratio of 36.1% (Dec. 31, 2022: 38.5%).

adidas announced a further release of YEEZY inventory with a range of existing products being available in phases throughout the month of August across the world. As previously communicated, adidas will donate a significant amount to selected organizations working to combat discrimination and hate, including racism and antisemitism.

As with the release in May 2023, the second release will feature products which were initiated in 2022. The range available will include some of the most popular existing designs including the YEEZY BOOST 350 V2, 500 and 700 as well as the YEEZY SLIDE and FOAM RNR.

adidas will continue the support of partners combatting discrimination and hate with donations to existing and new partners. The company will continue to support the work of the Anti-Defamation League (ADL) and the Philonise & Keeta Floyd Institute for Social Change. In addition, adidas is proud to partner with Robert Kraft’s Foundation to Combat Antisemitism (FCAS) to fight all forms of hate.

To create further impact adidas will show support for the Foundation to Combat Antisemitism by including blue square pins with selected products sold directly by adidas in North America. These blue square pins were established by FCAS through their #StandUpToJewishHate campaign launched earlier this year, as the universal symbol for standing in solidarity and unity in the fight against antisemitism and all hate.

Since terminating the YEEZY partnership in October, adidas has been exploring multiple scenarios for the potential use of the existing YEEZY inventory. The process involved seeking feedback and listening to a diverse group of employees, organizations, communities, and consumers for how to responsibly manage the existing product.

OETI – a member of the internationally active TESTEX Group – has bought the German company ECS to expand its service portfolio in the field of personal protective equipment (PPE).

OETI has been offering testing services for textile work clothing since 1983 – for about 40 years. Since the introduction of CE labelling for personal protective equipment and the enactment of the PPE Directive by the European Union in 1993, OETI has not only been testing textile personal protective equipment, but now on also certifies it in conformity with EU standards. In 1995, OETI was certified in Brussels as a Notified Body (0534) for type-examinations and quality assurance monitoring of personal protective equipment end products. Testing and certification is carried out in accordance with the current PPE Regulation (EU) 2016/425.

Testing and Certification Body for Eye and Face Protection, based in Aalen, was founded 15 years ago and is a globally active institution for testing and certification of eye and face protection equipment. The company is one of the leading independent testing institutions for personal protection products in laser applications and for welding work.

ECS tests and evaluates occupational health and safety goggles with and without a filter action, passive and active switching protection filters and shields for welders, and laser protection filters, goggles, and shields. The company also tests the optical properties of sunglasses, sports glasses, ski goggles, swimming goggles and motorbike goggles.

With OETI’s takeover, the ECS location in Aalen is retained, and all employees will continue working at ECS. The new Managing Director of ECS GmbH as of 1 July 2023 is Dipl.-Ing. Rolf Diebolder.

‘We are present on the European market, on the American market and, via a representative office, on the Chinese market. With the aid of the new distribution channels through OETI and TESTEX, we want to steadily advance ECS’ expansion and be present on all five continents’, says Managing Director Rolf Diebolder, explaining his strategic plans for ECS. ‘I would like OETI and ECS to develop a joint strategy in order to be able to offer existing and new customers of both companies a complete package which, when combined, will give us a unique selling point in the marketplace’, says Diebolder.

Diebolder also sees further potential in the cooperation with regard to protective laser clothing. According to him, this is where the laser laboratory commissioned by ECS could be used to make textiles laser-safe. In the future, there will be more and more ‘hand-held’ devices, i.e. laser welding devices, for which gloves and protective jackets are needed.

After nearly 30 years with the company, Matthew North, Commercial Director at the viscose specialty fibre manufacturer Kelheim Fibres, will retire on July 1, 2023. Throughout his long and successful career, he has played a significant role in transforming Kelheim Fibres from a supplier of standard fibres to the European textile industry into a supplier of predominantly customized specialty fibres for the hygiene, specialty paper, and textile industries.

Mark von der Becke will assume the position of Sales Director and become part of the management team at Kelheim Fibres. The 48-year-old brings extensive experience in sales, marketing, and key account management. He has held various leadership positions in renowned companies such as Hoechst, Clariant, and DS Smith in Germany, Switzerland, and China. He is known for successfully developing and implementing strategy and change programs.

Dr. Marina Crnoja-Cosic, who has been serving as Director of New Business Development and a member of the management team at Kelheim Fibres since 2020, will take on the responsibility for marketing and communications. She will now drive the further development of the marketing strategy and communication with customers and partners.

Nylon 6, nylon 6,6, polypropylene, PET and calcium carbonate are available through the company’s proprietary carpet recycling process

Circular Polymers by Ascend, a market-leading recycler of post-consumer carpet, today the launch of Cerene™, a line of recycled polymers and materials made from the company’s proprietary carpet reclaiming technology. Cerene is available as polyamide 6 and 66, PET, polypropylene and calcium carbonate as a consistent,
sustainable feedstock for many applications, including molding and compounding.
Recycling experts from Circular Polymers will be showcasing Cerene at Compounding World Expo on June 14-15 at the Messe Essen in Germany.

Ascend Performance Materials, a fully integrated producer of durable high-performance materials and the majority owner of Circular Polymers by Ascend, is known for its innovations in nylon 6,6. Cerene will continue that legacy with offerings in nylon 6,6 while also bringing to market recycled polymers such as nylon 6, PET and PP.

“Customers around the globe are seeking consistent and reliable post-consumer recycled materials,” said Maria Field, business director of Circular Polymers by Ascend. “Cerene is mechanically recycled using a process that minimizes our carbon footprint and environmental impact.”

Circular Polymers by Ascend converts post-consumer carpet into fiber and pellets. The company uses a proprietary process in its California-based facilities to achieve high efficiency in recycling, successfully providing a new life for virtually every component of the carpet and backing. The company has redirected 85 million pounds of carpet from landfills into new goods since 2018.

On June 9, Hohenstein celebrates World Accreditation Day (WAD2023) along with 30 years as an accredited testing laboratory. In 1993, Hohenstein’s first lab received official certification to test textile products competently, reliably and impartially according to internationally recognized standards. With the expansion of its testing business, the company, headquartered in Boennigheim, Germany, has since gained numerous other accreditations for its global laboratories.

"The accreditations give our customers confidence that we comply with the required quality control procedures," says Julia Seeberg, who as Head of Quality Management also oversees the regular monitoring of the laboratories by DAkkS, the Deutsche Akkreditierungsstelle. “Everything possible is done to ensure the integrity of the test results.” In addition to DAkks accreditations of the testing laboratories for textile technological, biological, chemical and physical tests, Hohenstein is accredited as a certification and inspection body. Hohenstein's 75 years of expertise in the testing business complement its accreditation and provide an important basis for its long-standing customer trust.

Hohenstein laboratories in China, Bangladesh, Hong Kong and India have accreditations from the respective national and international accreditation bodies. The labs celebrate World Accreditation Day by highlighting the importance of accredited laboratories for the product quality and sustainability. "The demands of suppliers and consumers have increased," Julia Seeberg also notes. “For manufacturers to remain credible, it is even more imperative to demonstrate compliance with defined and standardized quality criteria.”

The globally valid quality standard for testing and calibration laboratories is DIN EN ISO/IEC 17025. The standard specifies general requirements for the competence, impartiality and uniform working methods of laboratories that operate internationally. Accreditations in accordance with DIN EN ISO/IEC 17020 and 17065 exist for the inspection and certification bodies. In addition, Hohenstein is an accredited testing laboratory for medical devices, where biological, chemical and physical laboratory tests are carried out. These tests form the basis for conformity with the European Medical Device Regulation (MDR).