From the Sector

Yalin Xu has been appointed Managing Director and President of DyStar Group by the Board of Directors. He will be directly responsible for the management and operations of DyStar Group. Mr Xu first joined DyStar in 2010 and has since been the Executive Board Director.
 
Eric Hopmann has been redesignated as CCO (Chief Commercial Officer), with a focus on Sales and Marketing of DyStar Group. He will continue to report to Yalin Xu. Mr Hopmann was with DyStar when the company started in 1995 and has been leading various leadership positions at DyStar Group, including the most recent CEO role, to which he was appointed in 2014.
 
DyStar’s leadership change is in response to the rapid global market changes, and to enable the group to accelerate growth and drive productivity. The group wants to streamline their operations and better utilise resources efficiently across the network.

• Best practices in chemical footprints

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, received top ranking, for the second consecutive year, among the world's 54 largest chemical companies in the ChemScore ranking by ChemSec, for its efforts to reduce its chemical footprint.

IVL is also the only chemical company that uses the Substitute It Now (SIN) List to remove hazardous substances, market safer alternatives, use bio-based and hazard-free recycled feedstocks, and develop low-carbon products. This reinforces IVL’s purpose of ‘reimagining chemistry together to create a better world’ and underscores the company’s support for the United Nations Sustainable Development Goals (SDGs).

Factors that increased IVL’s score include its ambition to use 16% bio-based and 10% recycled raw materials (rPET) as feedstock by 2030, and safer green chemistry substitutions to reduce toxicity from raw materials and production processes. IVL’s Deja™ brand, offering the world's first carbon-neutral PET pellet solution, is a sustainable alternative to reduce environmental impact.

The ChemScore ranking was developed by ChemSec, the non-profit International Chemical Secretariat in Sweden that advocates for safer alternatives to toxic chemicals, provide investors with better information to assess companies with strong chemical management strategies, and increased transparency. The ranking covers hazardous chemical portfolios, the development of safer chemicals and circular products, chemical management and company transparency, and responses to controversies, lawsuits, and regulations.

AkzoNobel has announced that Ben Noteboom will be nominated as a member of the Supervisory Board at the Annual General Meeting being held in April 2023. The Supervisory Board intends to subsequently elect him as Chair, succeeding Nils Andersen, who will retire as Chair and member of the Supervisory Board at the same time.

Noteboom is Chairman of Vopak’s Supervisory Board and a member of the Supervisory Board of Aegon. He also chairs the Board of Trustees of the Cancer Center Amsterdam. His former roles include CEO and Chairman of the Board of Management at Randstad, while he held different management positions at Dow Chemicals for nearly nine years.

Commenting on the announcement, Byron Grote, says: “The Supervisory Board is very pleased to announce the nomination of Ben Noteboom. His strong track record in executive and non-executive roles, and his broad experience in different industries – including the chemical industry – will be valuable additions to AkzoNobel.”

Adds Ben Noteboom: “I’m excited about the opportunity to join AkzoNobel’s Supervisory Board and look forward to contributing to the next phase of the company’s transformation as it makes further progress to becoming a frontrunner in the industry.”

A new cold chamber at its headquarters in Winterthur, Switzerland, enables Autoneum to optimize existing technologies as well as simulation and engineering services in vehicle thermal management and to adapt them to the changing thermal requirements of electric vehicles

The absence of heat from the internal combustion engine in electric vehicles as well as the impact of ambient temperature on the performance and lifetime of lithium-ion batteries are changing the requirements for vehicle thermal management. In addition, the energy from the battery is used not only to power the e-motor but also to thermally manage the battery itself and to warm and cool the car cabin by means of the heating, ventilation and air conditioning system. To increase the thermal comfort of the occupants and at the same time ensure optimum battery performance, save energy and thus increase the car’s range, manufacturers are placing increasing emphasis on efficient overall thermal management of the vehicle.

The chamber enables to test both occupants’ subjective perception of thermal comfort and the performance of components and entire vehicles under controlled temperature conditions of up to minus 20 degrees Celsius. It is thus a valuable addition to the existing testing and bench-marking facilities at the Company’s global research and development centers. The tests conducted in the chamber show how existing insulating components such as under battery shields, carpets and interior trim need to be optimized to further enhance the thermal management of the vehicle battery and cabin. The tests also provide valuable insights regarding the development and optimization of heated surfaces such as floor mats and door trim panels to improve thermal performance and driver comfort of electric vehicles.

Matthias Holzammer is handing over the operational management of Autoneum for family reasons as of March 27, 2023. As his successor the Board of Directors has appointed Eelco Spoelder, who has over 25 years of experience in the automotive supply industry.

Eelco Spoelder has held global leadership positions in the automotive supply industry at Faurecia and previously Continental, where he ensured operational competence and strategic continuity even in a challenging market environment.
He has extensive experience in operations, manufacturing, purchasing, customer satisfaction, quality and IT and has proved successful in transforming businesses and delivering profitable growth. His core competencies include negotiating with an international network of customers and suppliers in the automotive supply industry. He is also deeply familiar with technology trends in the automotive industry.

“In view of the many challenges and opportunities in the automotive industry, we are proud to have found in Mr. Spoelder a very accomplished and experienced leader who will further develop and implement our proven strategy,” said Hans-Peter Schwald, Chairman of the Board of Directors of Autoneum Holding Ltd.

Matthias Holzammer is leaving Autoneum at his own request for family reasons and will hand over operational management of the Group to Mr. Spoelder on March 27, 2023. He will then serve as Senior Advisor to the Chairman of the Board of Directors and the new CEO until June 30, 2023.

Freudenberg recently completed the installation of 13,000m2 of photovoltaic cells on the roof of its new Nantong factory. With a total capacity of 1.6 MW, the new rooftop installation is projected to produce 1.5 million kWh of green electricity each year. In addition to reduced energy consumption from the grid, this new installation will lower CO2 emissions by approximately 1,200 tons/year.

Beyond the photovoltaic installation, Freudenberg has integrated sustainability into the Nantong factory’s design, with advances in energy conservation and emissions and loss reduction.
The factory uses valley voltage to cool water in its reservoir that is applied to A/C and machine temperature management during working hours. The new waste gas treatment technology enables hot water collected by heat exchangers to be directly reused in production, thereby reducing thermal energy waste. Furthermore, the factory applies a new multi-phase waste gas treatment technology to reduce volatile organic compounds (VOC) emissions. The factory has also incorporated new methods to improve the A-grade rates of bi-elastic interlinings and shirt interlinings, further reducing waste while improving garment quality.

As part of the Group’s sustainable development strategy, Freudenberg Apparel has also launched its House of Sustainability to minimize the impact of production processes on the environment and help customers achieve their sustainability goals, with responsible products across the seasons.

The 11^th India ITME will take place from December 8.– 13., 2022, in Noida, India. Over 1,800 exhibitors and more than 150,000 trade visitors from the textile and apparel industry from all over the world are expected. Groz-Beckert will be presenting innovations from its various product areas..

India ITME takes place every four years and is the ideal technology platform for forward-looking innovations in the textile world. At the 11th edition of India ITME, exhibitors will be presenting their highlights from research and development across 15 halls.

The Knitting Product Division will be presenting several new products at India ITME: Among them the SAN™ SF staple fiber needle and the SNK SF staple fiber sinker, which are specially designed for use on large circular knitting machines. The division will also be exhibiting the SAN™ TT for application-related use in the field of technical textiles for flat knitting machines, as well as a needle which enables the advance into new dimensions of gauge in the flat knitting sector.

Groz-Beckert will also be demonstrating its competence as a system supplier in the field of warp knitting at the India ITME. The warp knitting machine needles and system parts from Groz-Beckert are precisely matched to one another and achieve a uniform and flawless warp knitting process.

With the WarpMasterPlus and the KnotMaster, the Weaving product division presents the latest generation of drawing-in and knotting machines from Groz-Beckert. They are particularly distinguished by their ease of operation and flexibility.

The product area Felting (Nonwovens) presents its product and service highlights for the nonwovens industry. These include the HyTec P jet strip for spunlace customers as well as the GEBECON felting needle, the dur needle, EcoStar felting needle and the Groz-Beckert customer product. The HyTec P-nozzle strip is characterized by improved handling and higher hardness. The patented GEBECON felting needle offers an improved surface finish and optimized breakage bending properties.

The Carding product area will present its further developments for the spinning industry. These include the new stationary flat series, the TV56 revolving top and the cylinder wire set with special tooth geometry. The new stationary flat series is characterized by an innovative tooth geometry and a new type of tooth distribution. The new TV56  revolving top with its new setting pattern and 560 points per square inch is particularly easy to clean. The improved cylinder wire convinces with its special and patented tooth shape, which has a positive effect on the maintenance effort. This makes it particularly suitable for quality-oriented cotton spinning mills producing high-quality yarns. Visitors can also look forward to the new InLine card clothing series for the nonwovens sector.

In the Sewing exhibition area, the focus is on technical textiles – in particular the manufacture of car seats. The answer to the high demands of sewing car seats is the special application needle SAN® 5.2 from Groz-Beckert. The special geometry gives it sufficient stability. The double groove at the point improves thread guidance and leads to a uniform seam pattern, especially in multidirectional sewing processes. The scarf chamfer on both sides of the needle prevent skipped stitches and optimize loop formation. The wear protection is increased by the titanium nitride coating GEBEDUR. In addition, the quality management INH will be exhibited and the functions and contents of the customer portal will be presented.

• Successful repositioning: BOGNER achieves its best financial year since 2015 following the completion of the two-year performance program.
• Continuity in management: Gerrit Schneider takes over as sole CEO. Heinz Hackl, present Co-CEO, leaves the company by mutual agreement. With former CEO Andreas Baumgaertner and Andreas Gall two experienced advisors move closer to the management.
• Streamlined governance and corporate structure: Arndt Geiwitz hands the company back into the hands of the family after the successful completion of the performance program and takes over the chairmanship of the newly created advisory board. BOGNER operates with GmbH as legal form in the future.

With the financial results in 2021/22, BOGNER has achieved the most successful financial year since 2015. A key contribution to this was provided by the performance program developed with the management consultancy EY Parthenon in July 2020. Since then, it was implemented as planned and successfully promoted profitability and sustainable global growth. In order to create the ideal framework conditions for further success, BOGNER is now simplifying its management, governance and corporate structures.

Gerrit Schneider takes over as sole CEO
Gerrit Schneider, Co-CEO of BOGNER since April 2020 and responsible for Finance, Legal, IT, Operations and HR, will take over the sole CEO role of BOGNER with immediate effect. Heinz Hackl, present Co-CEO of BOGNER and currently responsible for Sales, Design, Marketing and Licensing, will leave BOGNER by mutual agreement.

The former BOGNER CEO Andreas Baumgaertner (2017-2020) will move closer to the management for all product- and design-specific topics and will intensify his advisory role. He has already advised the company in the background in recent years and will now accompany and help to shape the future direction of the brand even more closely. As for the external media presence, BOGNER secures further know-how and experience with Andreas Gall, the former founding CEO and Chief Innovation Officer (CINO) of Red Bull Media House.

Streamlined structures with end of trusteeship and new active advisory board
In addition to the management, BOGNER is also refining its governance structures: With the successful completion of the performance programm, trustee Arndt Geiwitz has achieved the goal he has set together with management and family to bring BOGNER in a strong position. Now he returns the company back to the family. Arndt Geiwitz will remain closely associated with BOGNER and will accompany the company in its further development as Chairman of the newly created advisory board.

Furthermore, BOGNER changes the legal form of the company to a GmbH (limited liability company) and merges individual group companies as part of this step. This simplifies the corporate structures and reduces complexity. As part of this adjustment, BOGNER is setting up an advisory board with supervisory function. The advisory board, staffed with experienced personalities, will advise the management comprehensively on the strategic direction, function as a sparring partner and serve as a supervisory body. In addition to Arndt Geiwitz as Chairman, Christian Laus, a long-standing advisor of the Bogner family and Managing Director of BOGNER Film GmbH, will become a member of the advisory board. Furthermore, Dr. Daniel Heine, Managing Director of Patrimonium Asset Management AG, will join the advisory board. A private debt fund of Patrimonium Asset Management AG as strategic financing partner and BOGNER have signed financial agreements to replace the loan agreement concluded with various banks as part of the performance program.

• Last twelve months (LTM) Core EBITDA of US$2.5B, an increase of 60% YoY
• Core EBITDA per ton of US$163 in LTM3Q22 and US$159 in 3Q22
• Operating cash flow of US$1,952 in LTM3Q22, an increase of 59% YoY
• 3Q22 Core Net Profit of THB 10.34B and Reported Net Profit of THB 8.14B

Indorama Ventures Public Company Limited (IVL) reported a resilient year-to-date performance and increasing earnings in a challenging macroeconomic environment.

IVL posted Core EBITDA of US$606 million in 3Q22, a 39% increase YoY and a decline of 20% QoQ as the strong tailwinds that drove record earnings into 2022 began to normalize in the third quarter.  

Strategic acquisitions, including Oxiteno, are bolstering IVL’s increasingly diverse geographic footprint and product portfolio, supporting earnings through volatile economic conditions. Revenue declined 10% QoQ in 3Q and grew 27% YoY as Combined PET, the largest business segment, saw steady volumes through the year, and new portfolio additions performed strongly, such as surfactants in the Integrated Oxides and Derivatives segment. With more than 70% of IVL’s platform catering to consumer daily necessities, demand remains stable.

Fibers segment posted YTD Core EBITDA of $189 million, a rise of 2% YoY. 3Q Core EBITDA increased 2% YoY, and decreased of 11% QoQ, to US$49 million. The Lifestyle fibers business continues to be impacted by the lockdown in China, while management in the Hygiene and Mobility verticals in Europe are effectively managing high energy costs.

Combined PET (CPET) segment achieved YTD Core EBITDA of US$1,192 million, an increase of 42% YoY. Core EBITDA in 3Q22 rose 27% YoY to US$327 million, and declined 24% QoQ, as business remained steady across operations apart from in Europe where peak energy prices continue to put pressure on demand and margins.

D K Agarwal, CEO of Indorama Ventures, said, “We are pleased with our performance across the business cycle. Our management is working hard to extract the advantages that we enjoy in terms of geographic leadership, product diversity, and an unmatched customer base of global household brands. Together with our habitual lens on cost management, these actions will help us to weather the economic challenges and continue to focus on our long-term potential.”

• Sales of CHF 366.8 million in the third quarter, CHF 987.4 million after nine months
• Order intake of CHF 226.4 million in the third quarter, CHF 1 095.8 million after nine months
• Order backlog of around CHF 2 000 million as of September 30, 2022
• Precautionary measures taken against potential energy crisis in Europe
• Financing of a Professorship for Artificial Intelligence
• Rieter site sales process on schedule
• Outlook 2022

Rieter recorded a significant increase in sales in the third quarter of 2022, reaching a level of CHF 366.8 million (2021: CHF 257.3 million). The measures introduced to increase sales and profitability in the second half of 2022 are taking effect and will continue to be implemented in a systematic manner. These include a close cooperation with key suppliers, the development of alternative solutions to eliminate material shortages, the enforcement of price increases, and the improvement of the margin quality of the order backlog.

The order intake of CHF 226.4 million in the third quarter of 2022 reflects the expected normalization of demand for new equipment compared to the record year of 2021, which was characterized by catch-up effects and the regional shift in demand. In addition, the well-known uncertainties and risks and the continuing extremely long delivery times at key manufacturers had a dampening effect on demand. Due to the slowdown in capacity utilization in the spinning mills, demand for consumables, wear & tear and spare parts also declined in the third quarter of 2022. Major orders continued to be recorded from Turkey, Uzbekistan, and China.

Rieter has a high order backlog of around CHF 2 000 million as of September 30, 2022 (September 30, 2021: CHF 1 562 million), which will guarantee capacity utilization in all three business groups until well into 2023 or rather 2024. The cancellation rate in the reporting period was around 5% of the order backlog.

Outlook 2022
Rieter anticipates weakened demand for new systems in the coming months. The demand for consumables, wear & tear and spare parts will depend on the capacity utilization of spinning mills in the months ahead.

For the full year 2022, Rieter expects sales of around CHF 1 400 million. The realization of sales revenue from the order backlog continues to be associated with risks in relation to the well-known uncertainties.

Despite significantly higher sales compared to the prior-year period, Rieter expects EBIT and net result for 2022 to be below the previous year’s level. This is due to the considerable increases in the cost of materials and logistics, additional costs for compensation of material shortages as well as expenses in connection with the acquisition in the years 2021/2022.