From the Sector

Paper Converting Machine Company (PCMC) is pleased to announce that Stan Blakney has accepted the position of President of its global operations. In addition to leading the company’s US business, as he has since February 2019, Blakney now will assume leadership of operations in Italy and Serbia as well.

Since Blakney joined PCMC, he has led the company’s expansion in flexographic-printing, bag-converting and hygiene solutions, while also continuing to drive growth in tissue converting and packaging.

The creation of this new role enables PCMC to further unify its operations worldwide and expand into new geographies across all of its markets. It also enhances aftermarket support globally for its customers.

“We’ve seen tremendous growth and opportunity with the introduction of STAX Technologies and Hudson-Sharp to the PCMC family in the last two years,” said Blakney. “As we continue to bring our teams closer together, we are able to build our capacity to provide unified industry-leading service in all regions of the world. This includes enhanced access to parts, aligned Industry 4.0 solutions and around-the-clock care. Our goal is to give our customers a strong global service organization, with the support they need to keep their businesses moving forward.”

• SGL Carbon receives €42.9 million funding under IPCEI for graphite anode materials (GAM) in lithium-ion batteries
• Funding in the amount of €42.9 million to 2028 for SGL Carbon GmbH from the German Federal Government and the Free State of Bavaria
• SGL Carbon project aims at European production of innovative anode materials as a key value-added step in electromobility

SGL Carbon, a leading supplier of graphite and carbon products, today received a funding notification for the development and industrialization of innovative anode materials made of synthetic graphite for use in lithium-ion batteries. The funding program is part of the second European IPCEI (Important Project of Common European Interest) / EUBatIn (European Battery Innovation) program, which aims at a competitive European value chain for lithium-ion batteries based on innovative and sustainable technologies.

SGL Carbon is one of a few manufacturers of synthetic graphite for anode materials in Europe. The company’s contribution to the IPCEI project ranges from the development of anode materials with increased performance, energy-efficient and sustainable manufacturing processes to novel recycling concepts. It also includes scaling them up to pilot scale and finally mass production. Over the project lifetime until 2028, the goal is to also establish a closed cycle for this cell component. SGL Carbon has already created a solid foundation for the project through previous investments such as the battery application laboratory at its Meitingen site. The German federal government and the Free State of Bavaria provide funding for the SGL Carbon project totaling €42.9 million, which can be drawn down over the duration of the project.

"With our development and industrialization project for new innovative anode materials and processes, we make an essential contribution to establishing a sustainable and competitive European value chain and circular economy for lithium-ion batteries. In turn, this enables us to support our customers with tailored materials and services in their innovation and industrialization process. We are very pleased about the support from the federal and state governments in this important task and would like to express our sincere thanks," explains Burkhard Straube, President Business Unit Graphite Solutions at SGL Carbon.

"In order to produce competitive, high-performance and particularly environmentally friendly batteries in the future, we need innovations. The companies participating in the IPCEIs base their battery materials, cells and systems pursued in the projects on their own research - in cooperation with their partners. This way, we ensure that the battery ecosystem being created in Germany and Europe will also place us among the world leaders in terms of technology," says Elisabeth Winkelmeier-Becker, Parliamentary State Secretary at the German Federal Ministry of Economics and Technology.

"The funding ensures value creation in a central high-tech segment with great future potential, which is ideally suited to Bavaria as a business location. In the course of the project, 25 jobs will be secured or newly created in Meitingen. SGL Carbon is an important company for the entire region and a major employer," says Hubert Aiwanger, Bavarian Minister of Economic Affairs and Bavarian Deputy Minister-President.
 
Synthetic graphite is utilized as anode material for lithium-ion batteries in many fast-growing applications such as electric vehicles, stationary energy storage systems and mobile consumer devices. Compared to natural graphite, synthetic graphite has a better performance, higher quality consistency and easier production scalability, as well as a better profile in terms of environmental footprint and safety in manufacturing. In the project described, SGL Carbon builds on its core competencies in the development and mass production of synthetic graphite.

• AFRY engineering partner when Renewcell expands operations to lead the fashion industry into a sustainable and circular future

Renewcell has awarded AFRY an engineering assignment for their recycled textile materials production expansion at SCA's Ortviken paper mill in Sundsvall, Sweden. The assignment includes project and construction management services, process, mechanical and piping engineering, electrical, automation and instrumentation engineering, fire and HVAC design, as well as civil design. The project is a continuation of AFRY's previous feasibility studies.

The trend in textiles and design requires sustainable fashion. Customers require fashion companies to reduce their environmental impact through new technologies and innovations for the circular economy. One important element is recycling of textile fibers that is a path towards a more sustainable fashion.

Renewcell is a multi-award-winning textile recycling company based in Sweden. The company’s vision is to inspire an Industrial Evolution towards a sustainable world by producing high quality materials from recycled textiles. “There is a way to put fashion first without putting the environment in second place” – Renewcell describes their business concept. With their technology, the company has succeeded in recycling and regenerating textile fiber from old clothes to turn into new clothes. For example, H&M, a partner of Renewcell, has launched a garment that is half made with Renewcell’s fabric.

Today, Renewcell has a demo plant in Kristinehamn, Sweden, with the possibility to recycle over 4,500 tons of textiles each year. The company has now signed a major agreement with one of the world's largest producers of viscose fiber. With that as a basis, together with a well-proven process and technology, they are now building a full-scale production plant in Sundsvall, Sweden. When the new plant is ready for production, it will have the capacity to recycle 60,000 tons of textile waste annually, which is just over half of Sweden's annual textile consumption. The new plant is expected to be commissioned in 2022.

“We are pleased to continue the partnership with AFRY, which began with the feasibility study they delivered in 2020. With AFRY, we feel secure in having a partner with both world-leading expertise and the ability to deliver projects on time and within budget. Together, we lead the fashion industry into a sustainable and circular future,” says Christer Johansson, Project Director at Renewcell.

“We are extremely proud to be part of Renewcell’s investment. We are excited to contribute in this transition towards more sustainable solutions for the future and look forward to continue this journey together with Renewcell,” says Ulf Strenger, Business Unit Manager at AFRY.

• SGL Carbon supplies first plants with DIN EN1591-1 tightness certification to the chemical industry
• First column already delivered to major European customer

In plant operation in the chemical industry, the tightness of flanged joints is becoming increasingly important when dealing with aggressive and corrosive operating media. In accordance with European Union requirements, the German government has defined new requirements in the first administrative regulation to the Federal Immission Control Act (BImSchG), which will apply from January 2021. SGL Carbon is the first manufacturer of PTFE-lined columns to be able to provide the required proof of tightness according to DIN EN 1591-1 and has already delivered the first column with the new certification to a major European customer.

Specifically, the Technical Instructions on Air Quality Control (TA-Luft) of the Federal Immission Control Act (BImSchG) prescribe new, stricter emission values (leakage class L0.01) for keeping the air clean, which must be complied with when operating plants requiring a permit. In order to be able to guarantee the technical tightness of steel/PTFE flanged joints, SGL Carbon, together with a working group of other companies, first determined the EN 13555 sealing characteristic values, which reflect the material-specific PTFE properties as well as the characteristic manufacture and shaping of the linings. With these characteristic values integrated in a database, SGL experts were able to perform realistic DIN EN 1591-1 calculations for flanged joints of a packed column lined with POLYFLURON PTFE and prove the tightness in accordance with TA-Luft. The design, final acceptance and pressure tests in accordance with Directive 2014/68/EU (PED) were successfully certified by a recognized notified body.

"With the rapid implementation of the new  tightness requirements for columns, our solutions offer customers further significant added value, which is currently also being applied to other products. Our sales team and technical service are available to provide customers with comprehensive advice on the new directives and our products," explains Ralph Spuller, Director Product Management in the Process Technology (PT) Business Unit at SGL Carbon.

Swedish commission dyeing company 7H Färgeri is looking to propel itself to the forefront of sustainable fabric production with the installation of the first industrial scale imogo Dye-Max spray dyeing line.
Currently under construction, the line will be delivered in the first week of March to the 7H plant close to the Swedish city of Borås. It will have a full working width of 1.8 metres with an operating speed of up to 50 metres for the reactive dyeing of cellulosic fibre-based fabrics. In addition, it will be capable of carrying out the application of a wide range of fabric pre-treatments and finishing processes, providing the company with unbeatable flexibility in production.

A proven Mini-Max laboratory unit for pre-determining application volumes and colour matching will also be delivered as part of the contract.

With the potential to slash the use of fresh water, wastewater, energy and chemicals by as much as 90% compared to conventional jet dyeing systems, the DyeMax has gained considerable attention since the concept was outlined and a prototype machine constructed in 2019.

Pilot scale trials have subsequently been carried out with many well-known international textile companies and their brand partners.
The application unit of the Dye-Max consists of a closed chamber containing a series of spray cassettes with precision nozzles for accurate and consistent coverage, in combination with the patented imogo Pro Speed valve that controls the volume to be applied.

Control and precision
“We are achieving an extremely low liquor ratio of around 0.5-1 litres per kilo of fabric and we fully control the pickup, applying precisely what is required to the specific fabric,” says imogo founding partner Per Stenflo. “Compared to traditional padders there is no contamination of the dyebath or dilution of the dye liquor to worry about.
Fast changeovers with virtually no waste together with a high production speed enable a high productivity and unmatched production flexibility. The system is also equipped with an exhaust system and droplet separator to ensure that the environment around the unit is safe and free from particles.

The imogo Mini-Max meanwhile frees up valuable production time by avoiding wasteful pre-runs. The user simply sets the recipe with the Mini-Max and transfers the parameters to the Dye-Max recipe database for the system to be fully production ready.

7H Färgeri was founded in 1935 and has established itself as the Nordic region’s most complete dyeing and processing plant, specialising in technical and functional textiles for the automotive and soft furnishings sectors, as well as functional and protective clothing.

The family-owned business is now run by brothers Johan and Peter Engelmann.
“We are pleased to be pioneering a sustainable first for the dyeing industry,” said Johan Engelmann. “Our goal is to offer the market products and services with the highest quality in the most climate-smart and sustainable way, and imogo’s spray technology will give us the opportunity to offer innovative new services and products to both existing and new customers. It will be a very exciting journey.”

World Congress on Textile Coating
On February 12th Per Stenflo will make a presentation entitled ‘Transforming Textile Dyeing’ during the online World Congress on Textile Coating which is held over four days, between February 11th and 19th.

Lectra announces its plan to acquire the entire capital and voting rights of US-based Gerber Technology. A key Industry 4.0 player in the fashion, automotive and furniture industries, Lectra designs smart industrial solutions – software, equipment, data and services – that help brands, manufacturers and retailers develop, produce and market their products.

The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations. After the French work council of Lectra is consulted and the binding documentation is signed, completion of the acquisition shall remain subject to merger control clearance and other customary conditions and shall be submitted to Lectra shareholders for approval.

The proposed combination would occur at an opportune time for both companies and their customers. The current uncertain economic climate and unprecedented challenges that fashion, automotive and furniture companies are facing due to the COVID-19 pandemic make it more important than ever for them to transform, digitalize and optimize their operations.

For over 50 years, Gerber Technology has used its proprietary technologies and deep domain expertise to provide integrated software and automated hardware solutions to companies around the world, including over 100 Fortune 500 companies in 134 countries.

The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions. Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.

Consolidating the two companies’ research and development capabilities will enable the combined company to accelerate development of Industry 4.0 technologies and help its expanded customer base seize the full potential of these innovations.
Integrating the technology of the two companies will endow them with the resources to anticipate and address rapidly changing market conditions.

Key transaction terms

Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of 175 million euros – through a combination of cash and debt – plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder. This would represent a total amount of about 300 million euros based on Lectra’s closing share price on February 5, 2021. No contingent consideration is contemplated.

Gerber Technology’s revenues was 165 million euros in 2020.

Thanks to the strong value creation deriving from significant synergies, Lectra expects the transaction to be accretive for shareholders from 2022.

Upon closing, Daniel Harari would own c. 14.6% of the Lectra shares and AIPCF VI LG would own c. 13.3%.

Lectra’s Board of Directors would welcome a director representing AIPCF VI LG.

Daniel Harari would continue to be the Chairman and Chief Executive Officer of Lectra. Gerber Technology Chief Executive Officer, Mohit Uberoi, would assume special advisor to Daniel Harari role until end-2021.

Lectra’s shareholders would be invited to vote on the issuance of the 5 million new Lectra shares reserved to AIPCF VI LG at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021. A report containing additional information will be made available to the shareholders prior to the Extraordinary Shareholders’ Meeting.

Lazard is acting as exclusive financial advisor to Lectra, and Latham & Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes & Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

2020 results, update on the 2020-2022 strategic roadmap and guidance for the coming years will be disclosed on February 10, 2021.

Lectra management will discuss the transaction, provide forward-looking guidance for the combined company upon closing of the transaction and answer questions from the financial community during the February 11, 2021 webcast Analyst Conference meeting in French starting at 8:30 am (CET - Paris).

• DushaGreya is a well-known brand from talented Moscow-based designer, Natalia Dushagreya, who puts her all into her unique creations.

Combining her outstanding creativity with cutting-edge digital printing technology, Natalia has been delighting women with eye-catching, comfortable clothes, which boast unparalleled individuality and vivacity for several years. “The quality of digital prints surpasses that of traditional fabrics, both in the variety of colour compositions and in the contrast and clarity when printing small details or complex geometric elements. Digital technology makes it possible to achieve exceptionally smooth colour transitions, which is almost unattainable when using analogue printing methods. As a designer, I make sure to fully leverage the advantages of digital printing when designing and producing my collection”, says Natalia.

By the time the DushaGreya brand begun, Natalia and her like-minded associate and father, Alexander Kordovatov, already had experience in the field of sublimation printing and knew that printing on fabric for subsequent tailoring would be carried out using this technology. However, no third-party performers could be found that would meet the quality and deadline requirements of the brand, so they decided to purchase new equipment and start printing at their own site. 

Alexander says. “We also found out that Smart-T (Mimaki's distributor in Russia), the supplier of this equipment in Moscow, is highly rated by the industry community and customers due to its professional expertise, first-line service support, and highly qualified engineers.” At the end of 2019, Smart-T installed the highly anticipated Mimaki Tx300P-1800 direct textile printer at the DushaGreya facility. Today it prints fabrics for dresses, skirts, T-shirts, fleeces, jumpers, hoodies, trench coats, and other midwear.

"Mimaki Tx300P-1800 is the only printer in the Mimaki line that allows us to print on natural fabrics without pre-processing,” Alexander comments. “This gives us the ability to produce short, original print runs at no extra cost, which is vital in achieving our goals. The TP400 pigment inks used in this printer have an expanded colour gamut, so the prints are always bright and saturated.”

• Tata Communications continues to drive growth and profitability Delivers PAT of INR 309 Crore for Q3, up 428% YoY
• Data services revenue grew by +3.8% YoY | Consolidated EBITDA at INR 1,046 Crore, increase of +37.5% YoY with margin expansion of 680 Bps

Consolidated financial highlights

•    Consolidated revenue was at INR 4,223 crore (USD 572 Mn); flat YoY, growth in data business compensated for decrease in Voice business
•    Consolidated EBITDA at INR 1,046 crore (USD 142 Mn); increase of +37.5% YoY on the back of robust growth and margin expansion in data business and cost optimisation initiatives
•    Consolidated PAT at INR 309 crore (USD 42 Mn) as compared to a profit of INR 59 crore in Q3 FY20, growth of +428% YoY, on the back of strong growth in profitability
•    Net Debt has come down on the back of strong free cash flow generation; Net Debt to EBITDA at 1.9x as compared to 2.9x for same quarter last year
•    CAPEX for this quarter was INR 339 crore as compared to INR 490 crore in Q3 FY20

Please find attached the detailed financial results Q2 FY21.

• Sappi implements innovative barrier paper technology to increase production

Sappi will introduce new barrier coating technology for functional paper packaging at its speciality mill in Alfeld, Germany, strengthening its position as the leading global provider of sustainable paper packaging solutions. Explaining the decision, Berry Wiersum, CEO Sappi Europe stated: “Expanding the use of our proprietary barrier coating technology underpins Sappi’s drive to maintain our leading position in barrier coated paper as well the commitment we have with our customers in developing innovative future focused packaging solutions which contribute towards a sustainable future”

•    Investment in sustainable barrier coating technology
•    Comprehensive expertise in future focused functional paper packaging
•    Where performance meets environmental accountability

The demand for paper and paperboard packaging continues to rise dramatically as consumers become increasingly mindful of the impact their buying choices have on the environment.  The call for innovative, truly sustainable solutions has never been louder. Sappi is striving to support its customers to go beyond traditional film and foil-based material solutions, growing its products ranges to meet the demands of our ever-changing world. Working directly with brand owners Sappi seeks to create future-oriented circular solutions in line with growing collective global responsibilities.

The desire to continuously evolve to meet and exceed the business needs requires ongoing investment in innovation in order to create the solutions of tomorrow. Sappi’s acquisition of Rockwell Solutions has deepened the company’s barrier paper manufacturing knowledge. Adding barrier coater capacity at Alfeld Mill further upscales our capabilities, brings this unique combination of paper, dispersion and coating technology to more customers and enables Sappi to offer customers even more competitive and attractive paper packaging solutions.

Sappi has made great strides to provide future-focused products and services – matching and exceeding the needs of consumers now and in the future – delivering recyclable packaging solutions in line with the requirements of a circular economy. Environmental accountability is at the heart of both Sappi and its customers’ needs. Through this initiative Sappi will continue to challenge the conventional packaging industry with new ideas and solutions in order to make it easier for the world and the planet to follow a circular-economy strategy.

• Elleti Group partners with Wiser Wash for Europe and the Mediterranean area, with Portugal being the only exception, for a more sustainable fashion.
• The enterprise based in Verona joins Wiser Wash’s international network and adopts the innovative patented process for the treatment of denim that has the market’s lowest environmental impact.

Tradition and innovation: this combination has always characterized Elleti Group, a historic company based in San Bonifacio and an important point of reference for the denim industry and beyond. Now it is also the exclusive partner of Wiser Wash for Europe and the Mediterranean area, with Portugal being the only exception. Specializing in laundry, dyeing and garment making services, the company is led by the steady hand and ambitious vision of Luigi Lovato, who was recently recognized by Rivet50 as one of 2020's fifty most influential people in the denim ecosystem. The partnership with Wiser Wash is a fitting continuation of Elleti Group's tireless pursuit of excellence, development of cutting-edge solutions and commitment to environmental sustainability, which has always projected the proud Made in Italy tradition towards the future.

With the introduction of Wiser Wash's technology, Elleti Group has significantly reduced the amount of resources used in traditional garment treatment. This patented washing method eliminates the use of pumice stone and all harmful chemicals, while drastically reducing water consumption throughout the process. In addition, the efficiency of the process lowers chemical and mechanical stress on fabric fibers as compared to traditional treatment, guaranteeing greater garment robustness and longevity.

This important milestone is the latest and more relevant result of a commitment that has been integral to Elleti Group's approach since its foundation. This was already present in the Earthkeepers collection – a line of low environmental impact treatments which marked the culmination of research and experimentation journey, aimed at developing an authentic look whilst looking out for the safeguard of the environment, its resources and its people. Record of the company's evolution is kept in the "Stadium", an impressive archive of Elleti Group collections. There displayed are some 15,000 garments, direct evidence of the stylistic and technological developments that have made Elleti Group an international benchmark for creativity and high quality.

"Nothing is more important to us than satisfying our clients' needs. We put all our expertise and experience at the service of their creative ideas," said Luigi Lovato, Founder and CEO of Elleti Group. "The partnership with Wiser Wash is definitely another reason to be proud, and it will set our bar even higher in guaranteeing quality, authenticity and an ever-increasing respect for the environment and our employees."