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08.03.2024

Final report of the World Pultrusion Conference 2024

The 17th World-Pultrusion-Conference (WPC) took place in Hamburg from 29 February to 1 March. Pultrusion, also known as the extrusion process, is a highly efficient method for producing fibre-reinforced plastic profiles for various applications in the construction/infrastructure and transport sectors.

A record number of almost 150 participants from all over the world attended the event. An international audience of experts from Europe and the USA, as well as China, India and Japan was represented.

The lecture programme with a total of 25 specialist lectures was strongly characterised by the topic of sustainability. The process development of thermoplastic pultrusion and applications in wind energy, solar panels, bridge construction and the automotive industry were also discussed at length. Despite the difficult market environment, many opportunities and possibilities for the pultrusion industry were presented.

The 17th World-Pultrusion-Conference (WPC) took place in Hamburg from 29 February to 1 March. Pultrusion, also known as the extrusion process, is a highly efficient method for producing fibre-reinforced plastic profiles for various applications in the construction/infrastructure and transport sectors.

A record number of almost 150 participants from all over the world attended the event. An international audience of experts from Europe and the USA, as well as China, India and Japan was represented.

The lecture programme with a total of 25 specialist lectures was strongly characterised by the topic of sustainability. The process development of thermoplastic pultrusion and applications in wind energy, solar panels, bridge construction and the automotive industry were also discussed at length. Despite the difficult market environment, many opportunities and possibilities for the pultrusion industry were presented.

The conference takes place every two years in a European country of importance to the pultrusion industry and is organised by AVK for the European Pultrusion Technology Association (EPTA), in cooperation with the American Composites Manufacturers Association (ACMA).

Source:

AVK - Industrievereinigung Verstärkte Kunststoffe e. V / The European Pultrusion Technology Association (EPTA)

Composites production volume in Europe since 2011 (in kt) Graphik AVK – Industrievereinigung Verstärkte Kunststoffe e. V.
Composites production volume in Europe since 2011 (in kt)
06.03.2024

European composites market on the level of 2014

After a long phase of continuous growth, the composites market has seen strong fluctuations since 2018. In 2023, the overall market for composites in Europe fell by 8%.

The current mood on the markets in Germany and Europe is rather negative within the industry. The main drivers are the persistently high energy and raw material prices. Added to this are problems in logistics chains and a cautious consumer climate. A slowdown in global trade and uncertainties in the political arena are fueling the negative sentiment. Despite rising registration figures, the automotive industry, the most important application area for composites, has not yet returned to its pre-2020 volume. The construction industry, the second key application area, is currently in crisis. These factors have already caused the Eu-ropean composites production volume to fall significantly in recent years. There has now been another decline in Europe for 2023.

After a long phase of continuous growth, the composites market has seen strong fluctuations since 2018. In 2023, the overall market for composites in Europe fell by 8%.

The current mood on the markets in Germany and Europe is rather negative within the industry. The main drivers are the persistently high energy and raw material prices. Added to this are problems in logistics chains and a cautious consumer climate. A slowdown in global trade and uncertainties in the political arena are fueling the negative sentiment. Despite rising registration figures, the automotive industry, the most important application area for composites, has not yet returned to its pre-2020 volume. The construction industry, the second key application area, is currently in crisis. These factors have already caused the Eu-ropean composites production volume to fall significantly in recent years. There has now been another decline in Europe for 2023.

Overall development of the composites market
The volume of the global composites market totalled 13 million tons in 2023. Compared to 2022, with a volume of 12.3 million tons, growth was around 5%. In comparison, the European composites production volume fell by 8% in 2023. The total European composites market thus comprises a volume of 2,559 kilotons (kt) after 2,781 kt in 2022.

The market is therefore declining and falling back to the level of 2014. Overall, market momentum in Europe was lower than in the global market. Europe's share of the global market is now around 20%.

As in previous years, development within Europe is not uniform. The differences are due to very different regional core markets, the high variability of the materi-als used, a wide range of different manufacturing processes and widely differing areas of application. Accordingly, there are different regional trends, especially with regard to the individual processes, although there were declines in all re-gions and for almost all processes in 2023. At almost 50% of the market volume, the transportation sector accounts for the largest share of total composites pro-duction in terms of volume. The next two largest areas are the electri-cal/electronics sector and applications in construction and infrastructure.

The entire market report 2023 is available for download: https://www.avk-tv.de/publications.php.

16.02.2024

Lenzing updated its climate targets

The Lenzing Group has updated its climate targets to align with the goals of the Paris Agreement to limit the human-induced global temperature increase to 1.5 degrees Celsius. The Science Based Targets Initiative (SBTi) has reviewed and confirmed this target improvement.

By 2030, Lenzing aims to reduce its direct emissions from the production of its fiber and pulp plants (scope 1) and its emissions from purchased energy (scope 2) by 42 percent and its indirect emissions along the value chain (scope 3) by 25 percent on the way to net zero, from 2021 baseline. This corresponds to an absolute reduction of 1,100,000 tons (instead of the previously targeted 700,000 tons).

The following targets were recognized and confirmed by the SBTi:

The Lenzing Group has updated its climate targets to align with the goals of the Paris Agreement to limit the human-induced global temperature increase to 1.5 degrees Celsius. The Science Based Targets Initiative (SBTi) has reviewed and confirmed this target improvement.

By 2030, Lenzing aims to reduce its direct emissions from the production of its fiber and pulp plants (scope 1) and its emissions from purchased energy (scope 2) by 42 percent and its indirect emissions along the value chain (scope 3) by 25 percent on the way to net zero, from 2021 baseline. This corresponds to an absolute reduction of 1,100,000 tons (instead of the previously targeted 700,000 tons).

The following targets were recognized and confirmed by the SBTi:

  1. Overall net-zero target: Lenzing AG commits to reach net-zero greenhouse gas emissions along the entire value chain by 2050.
  2. Near-term targets: Lenzing AG commits to reduce absolute scope 1 and scope 2 greenhouse gas emissions by 42 percent by 2030 from a base year 2021. Lenzing AG also commits to reduce absolute scope 3 greenhouse gas emissions from purchased goods and services, fuels and energy-related activities as well as upstream transport and distribution by 25 percent within the same timeframe.
  3. Long-term targets: Lenzing AG commits to reduce absolute scope 1 and scope 2 greenhouse gas emissions by 90 percent by 2050 from a base year 2021. Lenzing AG also commits to reduce absolute scope 3 greenhouse gas emissions by 90 percent within in the same timeframe.

These updated targets replace the old SBTi approved Lenzing Group’s climate target in 2019.

04.01.2024

The climate-friendly carbon fiber - up to 50% less CO2 emissions

SGL Carbon relies on climate-friendly manufacturing processes in the production of its own carbon fibers. By using renewable energy, the carbon footprint of SGL fiber can be reduced by up to 50% compared to a conventional fiber.  

SGL carbon fiber is produced at the Lavradio (Portugal) and Moses Lake (USA) sites. When the Moses Lake site was selected in the 1990s, the use of hydropower as an energy source played a particularly decisive role. As a result, around 75,000 tonnes of CO2 can be saved in Moses Lake by purchasing electricity from hydropower plants compared to a fossil fuel-based electricity mix.

As part of the consistent implementation of its climate strategy, SGL Carbon will be using a CO2-neutral biomass system to generate energy from the beginning of 2024, which will make the production system, which was previously based on natural gas, more flexible and climate-friendly. At full capacity, the biomass system in Lavradio can save more than 90,000 tons of CO2.

The raw material used is wood pellets, which are sourced from a radius of 250 kilometres via short transport routes.

SGL Carbon relies on climate-friendly manufacturing processes in the production of its own carbon fibers. By using renewable energy, the carbon footprint of SGL fiber can be reduced by up to 50% compared to a conventional fiber.  

SGL carbon fiber is produced at the Lavradio (Portugal) and Moses Lake (USA) sites. When the Moses Lake site was selected in the 1990s, the use of hydropower as an energy source played a particularly decisive role. As a result, around 75,000 tonnes of CO2 can be saved in Moses Lake by purchasing electricity from hydropower plants compared to a fossil fuel-based electricity mix.

As part of the consistent implementation of its climate strategy, SGL Carbon will be using a CO2-neutral biomass system to generate energy from the beginning of 2024, which will make the production system, which was previously based on natural gas, more flexible and climate-friendly. At full capacity, the biomass system in Lavradio can save more than 90,000 tons of CO2.

The raw material used is wood pellets, which are sourced from a radius of 250 kilometres via short transport routes.

The climate-friendly energy supply at the site in Moses Lake (USA) combined with the new biomass plant in Lavradio (Portugal) lead to a reduction in CO2 emissions of up to 50% in the production of SGL's own carbon fibers compared to conventional fibers. With the investment in the biomass system, SGL Carbon is pursuing its climate strategy. The target is to save 50% CO2 emissions by the end of 2025 compared to the base year 2019 and to be climate-neutral by the end of 2038. In the period 2019 to 2022, SGL Carbon has reduced its CO2 emissions by 17%.

Source:

SGL Carbon SE

North American Nonwovens Industry Outlook 2022-2027 (c) INDA
07.11.2023

North American Nonwovens Industry Outlook 2022-2027 released

INDA, the Association of the Nonwoven Fabrics Industry, has released a new report, North American Nonwovens Industry Outlook, 2022-2027. This report is the twelfth edition detailing demand data for 2017 through 2022, with forecasts to 2027 and provides analysis across end-use markets through 2027.

It includes:

INDA, the Association of the Nonwoven Fabrics Industry, has released a new report, North American Nonwovens Industry Outlook, 2022-2027. This report is the twelfth edition detailing demand data for 2017 through 2022, with forecasts to 2027 and provides analysis across end-use markets through 2027.

It includes:

  • Economic and population drivers contributing to market growth over the next 5 years for markets in the U.S., Mexico, and Canada.
  • Disposable, Filtration, Wipes, Medical and Other applications.
  • Long-Life durable sectors for Transportation, Building and Construction, Furnishings, Geo and Agro Textiles, and Apparel.
  • Key drivers for the demand models and reasons for market upsets like the COVID pandemic.
  • A summary of historical and future trends that will affect the nonwovens market.

The report provides analysis across all nonwoven end-use markets, providing a comprehensive and accurate view of the total North American nonwovens industry. INDA redesigned this report to support strategic business planning and decision-making. The projections in the report were made by analyzing current market trends and drivers to highlight the market potential in terms of dollar value, units, and volume in both square meters and tonnage.

The new North American Nonwovens Industry Outlook report is available at 6,000.00 $, the discounted member price is 4,500.00

More information:
Market report INDA
Source:

Association of the Nonwoven Fabrics Industry

11.09.2023

Kelheim with sustainable European innovations at the Global Fiber Congress

Kelheim Fibres, a manufacturer of specialty viscose fibres, showcases its latest developments at this year's Global Fiber Congress in Dornbirn. The focus is on innovative solutions that not only promote environmental sustainability but also strengthen the European supply chain.

In his presentation "Towards high performing plant-based AHP products - a joined approach of Pelz and Kelheim Fibres," Dr. Ingo Bernt, Project Leader of Fiber & Application Development at Kelheim Fibres, together with Dr. Henning Röttger, Head of Business Development at PelzGROUP, introduces the development of a plastic-free yet high-performance panty liner. The water-repellent Kelheim specialty fibre Olea plays a crucial role in both the top and backsheet of the panty liner. This product emerged from the ambition to offer eco-friendly alternatives to conventional disposable hygiene solutions without compromising on product performance.

Kelheim Fibres, a manufacturer of specialty viscose fibres, showcases its latest developments at this year's Global Fiber Congress in Dornbirn. The focus is on innovative solutions that not only promote environmental sustainability but also strengthen the European supply chain.

In his presentation "Towards high performing plant-based AHP products - a joined approach of Pelz and Kelheim Fibres," Dr. Ingo Bernt, Project Leader of Fiber & Application Development at Kelheim Fibres, together with Dr. Henning Röttger, Head of Business Development at PelzGROUP, introduces the development of a plastic-free yet high-performance panty liner. The water-repellent Kelheim specialty fibre Olea plays a crucial role in both the top and backsheet of the panty liner. This product emerged from the ambition to offer eco-friendly alternatives to conventional disposable hygiene solutions without compromising on product performance.

A similar approach is pursued in the second presented project. Under the title "Performance Fibres meet Sustainable Design - example of a reusable Baby Diaper," Natalie Wunder, Project Leader from Kelheim Fibres' New Business Development team, together with Caspar Böhme, Co-Founder of Sumo, introduce the washable and reusable SUMO diaper. Made from biobased materials and featuring a unique construction with Kelheim specialty fibres, this combination offers double environmental benefits compared to conventional disposable baby diapers.

Both the panty liner and the SUMO diaper are manufactured entirely in Europe, resulting in shorter transportation routes and a reduced CO2 footprint. Moreover, these innovations contribute to strengthening the European textile and nonwovens industries by fostering innovation within Europe.

Source:

Kelheim Fibres GmbH

11.09.2023

Project and technology study: Trends and Design Factors for Hydrogen Pressure Vessels

Die AZL Aachen GmbH, bekannter Innovationspartner für Industriekooperationen auf dem Gebiet der Leichtbautechnologieforschung, startet eines neuen Projekts mit dem Titel "Trends und Designfaktoren für Wasserstoffdruckbehälter". Das Projekt wird Fragestellungen der Industrie in Bezug auf die Wasserstoffspeicherung adressieren.


AZL Aachen GmbH, a recognized innovator in lightweight technologies research and industry collaboration, announces the initiation of a new project titled "Trends and Design Factors for Hydrogen Pressure Vessels". The project aims to address industry needs surrounding hydrogen storage.

Hydrogen has gained significant attention as a key technological solution for decarbonization, with high pressure storage and transportation emerging as vital components. Its applications extend from stationary storage solutions to mobile pressure vessels employed in sectors such as transportation and energy systems.

Die AZL Aachen GmbH, bekannter Innovationspartner für Industriekooperationen auf dem Gebiet der Leichtbautechnologieforschung, startet eines neuen Projekts mit dem Titel "Trends und Designfaktoren für Wasserstoffdruckbehälter". Das Projekt wird Fragestellungen der Industrie in Bezug auf die Wasserstoffspeicherung adressieren.


AZL Aachen GmbH, a recognized innovator in lightweight technologies research and industry collaboration, announces the initiation of a new project titled "Trends and Design Factors for Hydrogen Pressure Vessels". The project aims to address industry needs surrounding hydrogen storage.

Hydrogen has gained significant attention as a key technological solution for decarbonization, with high pressure storage and transportation emerging as vital components. Its applications extend from stationary storage solutions to mobile pressure vessels employed in sectors such as transportation and energy systems.

The AZL team, renowned for its high reputation in providing market and technology insights as well as developing component and production concepts in the format of Joint Partner Projects seeks for companies along the whole composite value chain interested in further developing their application know how in this economically highly relevant field.

The project will provide an in depth exploration of market insights, regulatory standards, and intellectual property landscapes. Beyond this, there is a dedicated focus on staying updated with state of the art and advancements in design, materials, and man ufacturing techniques.

An integral component of the project involves the creation of reference designs by AZL´s engineering team. The reference designs will encompass a variety of pressure vessel configurations and will consider a diverse range of materials and production concep ts.

With the scheduled project start in October 2023, and a project timeline of approximately nine months, AZL encourages companies active across the composite value chain to participate. Companies interested in participating or seeking further information should reach out directly to the AZL expert team.

Source:

Aachener Zentrum für integrativen Leichtbau

05.09.2023

Beaulieu International Group at International Conference on Geosynthetics

Beaulieu International Group will turn the spotlight on geotextile products with sustainability benefits to support progress in resilient civil engineering projects at the 12th ICG Rome from 18th -21st September 2023, presenting options to target fossil carbon reduction by choosing PP-based staple fibres or woven geotextiles that are among the lowest in carbon footprint for geosynthetics.

For manufacturers of nonwoven geotextiles, Beaulieu Fibres International (BFI) offers PP fibres with > 25% carbon footprint reduction compared to the European standard PP fibres, generating 1.48 kg CO2/kg PP fibres. A step further is to accelerate the replacement of fossil carbon in engineered fibre applications by choosing its ISCC Plus certified bio-attributed MONO-PP with a negative carbon footprint.

For construction projects, nonwoven geotextiles made with high-tenacity HT8 fibres are proven to secure a longer service lifetime and reduce the environmental impact, as they offer high mechanical performance at a reduced weight.

Beaulieu International Group will turn the spotlight on geotextile products with sustainability benefits to support progress in resilient civil engineering projects at the 12th ICG Rome from 18th -21st September 2023, presenting options to target fossil carbon reduction by choosing PP-based staple fibres or woven geotextiles that are among the lowest in carbon footprint for geosynthetics.

For manufacturers of nonwoven geotextiles, Beaulieu Fibres International (BFI) offers PP fibres with > 25% carbon footprint reduction compared to the European standard PP fibres, generating 1.48 kg CO2/kg PP fibres. A step further is to accelerate the replacement of fossil carbon in engineered fibre applications by choosing its ISCC Plus certified bio-attributed MONO-PP with a negative carbon footprint.

For construction projects, nonwoven geotextiles made with high-tenacity HT8 fibres are proven to secure a longer service lifetime and reduce the environmental impact, as they offer high mechanical performance at a reduced weight.

Beaulieu Technical Textiles' (BTT) woven geotextiles provide a wide range of functions, including separation, filtration, reinforcement and erosion control, and are among the most sustainable in the industry. Depending on weight, the carbon footprint of its woven geotextiles (m²) ranges between 0.37 and 1.40 kg CO2 eq./m². They also minimize the use of natural resources for more sustainable infrastructure development. Case studies such as at the Ostend-Bruges airport highlight significant CO2 reduction on the jobsite by replacing the transport of 960 trucks of gravel with 3 trucks of woven geotextiles, and by extending the runway’s life span.

The ICG launch of its new line Terralys MF woven filtration geotextiles with monofilament boosts the performance of a common solution in building layers that require high water flow rates. High-tenacity extruded polypropylene tapes and monofilaments are interwoven to form dimensionally stable and highly permeable geotextiles. These new filtration geotextiles provide greater resistance to dirt and biological clogging. They allow water to travel freely while reducing soil erosion when employed as a separation and stabilizing layer.

As of September 2023, all PP staple fibres and woven geotextiles will have Environmental Product Declarations (EPD) based on LCAs. Each EPD is an essential tool for communicating and reporting on the sustainability performance and helps carbon-conscious customers in their purchasing and decision making. Registered EPDs are globally recognized, publicly available and free to download through EPD Libraries.

Source:

Beaulieu International Group

04.09.2023

Kelheim Fibres and MagnoLab join forces

The viscose specialty fibre manufacturer Kelheim Fibres has entered into a collaboration with MagnoLab, an international network of companies in the textile industry based in the Biella region, Italy.

This partnership highlights the importance of collaboration between different companies to drive innovation and sustainability in the textile industry. Kelheim Fibres sees itself not only as a fibre supplier but also as an innovation partner for the entire industry. Through its Open Innovation approach, Kelheim Fibres fosters the exchange of ideas and knowledge to jointly develop sustainable solutions for the future.

Kelheim Fibres operates several pilot and technical facilities itself. The close collaboration with MagnoLab, which boasts an impressive array of state-of-the-art textile machinery, allows for even more efficient research and development.

The viscose specialty fibre manufacturer Kelheim Fibres has entered into a collaboration with MagnoLab, an international network of companies in the textile industry based in the Biella region, Italy.

This partnership highlights the importance of collaboration between different companies to drive innovation and sustainability in the textile industry. Kelheim Fibres sees itself not only as a fibre supplier but also as an innovation partner for the entire industry. Through its Open Innovation approach, Kelheim Fibres fosters the exchange of ideas and knowledge to jointly develop sustainable solutions for the future.

Kelheim Fibres operates several pilot and technical facilities itself. The close collaboration with MagnoLab, which boasts an impressive array of state-of-the-art textile machinery, allows for even more efficient research and development.

The cooperation allows for practical testing, accelerating the implementation of innovations. It also contributes to a closer networking of the European (and thus regional) value chain. Thanks to shorter transport routes within Europe, not only is the environmental impact reduced, but also the realization of innovations in Europe is facilitated.

Dr. Marina Crnoja-Cosic, Director New Business Development, Marketing & Communications at Kelheim Fibres, emphasizes the advantages of the collaboration: " Through close networking with the companies organized under MagnoLab, we can produce small quantities of samples and prototypes using various technologies. This enables us to develop solutions based on our specialty fibres that can be directly transferred to our partners' production facilities within the textile value chain."

Source:

Kelheim Fibres GmbH

23.03.2023

SGL Carbon reports for 2022 best operating result in more than ten years

  • Sales increase of 12.8% to €1,135.9 million
  • EBITDApre improves by 23.4% to €172.8 million
  • Net financial debt reduced from €206.3 million to €170.8 million
  • Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon

  • Sales increase of 12.8% to €1,135.9 million
  • EBITDApre improves by 23.4% to €172.8 million
  • Net financial debt reduced from €206.3 million to €170.8 million
  • Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon
The increase in EBITDApre by €32.8 million to €172.8 million was mainly driven by the Graphite Solutions business unit (+€30.6 million). The Composite Solutions (+€7.9 million) and Process Technology (+€5.2 million) business units also contributed to the improvement in profitability. Although the Carbon Fibers business unit was able to offset the loss of a lucrative supply contract with an automotive customer in terms of sales with new orders from the wind energy sector, but these sales showed a significantly lower margin level. Accordingly, EBITDApre of this business unit decreased by €11.2 million to €43.2 million (previous year: €54.5 million).

Taking into account net one-off effects and non-recurring items of €8.9 million (previous year: €30.7 million) and depreciation and amortization of €60.8 million (previous year: €60.3 million), reported EBIT amounted to €120.9 million (2021: €110.4 million). This corresponds to an increase of 9.5%.
As a result of the pleasing business performance, the successes of the transformation and non-operating one-off effects and non-recurring items (€8.9 million), a positive Group’s net profit of €126.9 million (previous year: €75.4 million) was achieved in 2022. It should be noted that consolidated net income includes tax income of €31.3 million (previous year: minus €6.2 million). This development is mainly due to valuation adjustments on deferred tax assets amounting to €41.8 million, based on the good business development combined with positive earnings prospects in the USA. Current tax expenses amounted to €11.4 million in 2022 (previous year: €11.9 million).
 
Net financial debt and equity
In fiscal 2022, net financial debt was reduced significantly by 17.2% to €170.8 million compared with the end of 2021 (€206.3 million). The main reason for the decrease is the repayment of financial liabilities in the amount of €29.0 million. Free cash flow decreased from €111.5 million to €67.8 million in 2022. In this context, it should be taken into account that in the previous year, free cash flow included cash inflows of €30.6 million from the sale of land not required for operations.
After 2021, the equity ratio increased again to 38.5% at the end of 2022 (previous year: 27.0% I 2020: 17.5%). Due to the significantly improved earnings situation, the return on capital employed (ROCE) also rose from 8.0% in the previous year to 11.3% in 2022.
 
Development of the business units
As the largest business unit with a share of Group sales of around 45%, Graphite Solutions contributed €512.2 million to Group sales in 2022 (previous year: €443.6 million). The 15.5% increase in sales is based in particular on the positive development of the important market segments Semiconductor & LED and Industrial Applications. Compared to the previous year, sales to customers in the semiconductor & LED industry increased by 49.6%, driven in particular by increasing demand of materials and components for the production of silicon carbide-based high-performance semiconductors. Combined with the increase in sales, GS EBITDApre improved by 34.8% to €118.5 million (previous year: €87.9 million). Accordingly, the EBITDApre margin increased from 19.8% to 23.1%. Volume effects due to higher sales as well as margin effects from the product and customer mix had a positive impact.  Especially the higher sales with customers from the semiconductor industry should be taken into account.

In fiscal 2022, the Process Technology (PT) business unit benefited from the good order situation in recent months and increased its sales by 21.9% to €106.3 million. The main clients of the PT business unit are customers from the chemical industry. The positive development of PT is also reflected in EBITDApre which rose from €4.7 million in the same period of the previous year to €9.9 million. Higher capacity utilization and the successful passing on of increased raw material costs led to an improvement in the EBITDApre margin from 5.4%  to 9.3% in 2022. Energy costs play only a minor role at PT.

In the reporting year, sales of the Carbon Fibers (CF) business unit increased by 3.0% to €347.2 million (previous year: €337.2 million). It should be noted that CF had to absorb the scheduled expiry of a supply contract with an automotive customer at the end of June 2022. These sales were offset by orders from the wind industry and Industrial Applications. However, EBITDApre in the CF division decreased by 20.7% year-on-year to €43.2 million (previous year: €54.5 million). This earnings development is mainly attributable to the expiry of the high-margin automotive contract. In addition, a special effect from energy derivatives in the amount of minus €9.2 million impacted CF earnings in the 1st quarter of 2022. However, the implemented energy price hedges enabled the business unit to maintain its production capability throughout the entire fiscal year, that the weakening of earnings was mitigated.
The Composite Solutions (CS) business unit confirmed its upward trend in fiscal 2022 with a 25.0% increase in sales to €153.1 million (previous year: €122.5 million). The most important market segment for the CS business unit is the automotive industry. In line with the highly positive business performance, EBITDApre of CS increased by 65.3% to €20.0 million (previous year: €12.1 million). This figure also includes non-recurring positive effects of €3.7 million from compensation payments received from automotive customers for premature project terminations.

The non-operating Corporate segment contributed €17.1 million to Group sales (previous year: €16.5 million). In line with continued strict cost management as part of the transformation, EBITDApre improved slightly to minus €18.8 million (previous year: minus €19.2 million).

Outlook
"If we summarize our expectations for the 2023 financial year, it can be summed up under the guiding principle: -invest and stabilize," CFO Thomas Dippold comments on the forecast for 2023.
For the fiscal year 2023 we continue to expect solid demand for our materials and products. In particular, we expect that the demand for special graphite products for high-temperature processes, e.g. in the semiconductor, solar and LED industries, will continue to increase. On the other hand, the first-time full-year effect from the expiry of a supply contract with an automotive customer in the carbon fiber segment and the sale of our business in Gardena (USA) will burden sales development.

"The increasing demand for high-performance semiconductors for electromobility or renewable forms of energy will also boost the demand of components made of graphite for the production of these semiconductors. To benefit from the related opportunities, we will expand our production capacities in this segment and invest a double-digit million amount in 2023 . Based on existing supply relationships, we will implement this investments partly together with our customers," explains CEO Dr. Torsten Derr.
On the cost side, we expect energy and raw material prices to remain at a high level in 2023, along with significant wage increases. Our forecast implies that higher factor costs can be partially passed on to customers through price initiatives.
Based on the assumptions described, we expect Group sales to be at prior-year level and EBITDApre to be between €160 million and €180 million in the financial year 2023.
In the medium term (until 2027), we anticipate a further improvement in our EBITDApre margin between 18% and 19%.

Source:

SGL CARBON SE

(c) FET
Business Secretary Grant Shapps discusses FET’s wet spinning system with Mark Smith, FET R&D Manager
16.12.2022

FET extrusion system features in UK Business Secretary’s visit

The UK’s new Business Secretary, Grant Shapps has visited the Henry Royce Institute’ hub in Manchester to seal the second phase of R&D investment in the institute of £95 million. Fibre Extrusion Technology Limited (FET) of Leeds, England had previously installed its FET-200LAB wet spinning system at the University of Manchester site and this proved to be a focus for the Business Secretary’s interest, as he discussed the project with FET’s Research and Development Manager, Mark Smith.

This wet spinning technology enables fibres to be derived from sustainable wood pulp to produce high quality apparel and trials are now underway to perfect this process. FET is a world leading supplier of laboratory and pilot melt spinning systems, having successfully processed more than 35 different polymer types in multifilament, monofilament and nonwoven formats.

During his visit, Shapps spoke of the investment programme as a means of reinforcing the UK’s standing as a leader in advanced materials research, development and innovation.

The UK’s new Business Secretary, Grant Shapps has visited the Henry Royce Institute’ hub in Manchester to seal the second phase of R&D investment in the institute of £95 million. Fibre Extrusion Technology Limited (FET) of Leeds, England had previously installed its FET-200LAB wet spinning system at the University of Manchester site and this proved to be a focus for the Business Secretary’s interest, as he discussed the project with FET’s Research and Development Manager, Mark Smith.

This wet spinning technology enables fibres to be derived from sustainable wood pulp to produce high quality apparel and trials are now underway to perfect this process. FET is a world leading supplier of laboratory and pilot melt spinning systems, having successfully processed more than 35 different polymer types in multifilament, monofilament and nonwoven formats.

During his visit, Shapps spoke of the investment programme as a means of reinforcing the UK’s standing as a leader in advanced materials research, development and innovation.

“R&D investment is a critical way to turbocharge Britain’s growth. Growing an economy fit for the future means harnessing the full potential of advanced materials, making science fiction a reality by supporting projects from regenerative medicine to robots developing new recycling capabilities, right across the country. Today’s £95 million investment will do just that, bringing together the brightest minds across our businesses and institutions to help future-proof sectors from healthcare to nuclear energy.”

The Henry Royce Institute was established in 2015 with an initial £235 million government investment through the Engineering and Physical Sciences Research Council and the latest £95 million sum represents the second phase of the investment.

Opportunities being investigated by Royce include lightweight materials and structures, biomaterials and materials designed for reuse, recycling and remanufacture. Advanced materials are critical to the UK future in various industries, such as health, transport, energy, electronics and utilities.

15.09.2022

World Natural Fibre Update September 2022

World Natural Fibre Production in 2022 is estimated at 32.6 million tonnes, down 1.1 million tonnes from the estimate one month ago. Production reached 33.3 million tonnes in 2021 and 31.6 million in 2020.

A drought in Texas where over half of cotton produced in the United States is grown, and flooding in Pakistan, the fifth largest cotton producer, account for the decline (www.ICAC.org).

World Natural Fibre Production in 2022 is estimated at 32.6 million tonnes, down 1.1 million tonnes from the estimate one month ago. Production reached 33.3 million tonnes in 2021 and 31.6 million in 2020.

A drought in Texas where over half of cotton produced in the United States is grown, and flooding in Pakistan, the fifth largest cotton producer, account for the decline (www.ICAC.org).

  • Nearby cotton futures on the Intercontinental Exchange rose 14% from the end of July and finished August at $2.60 per kilogram.
  • The Eastern Market Indicator of wool prices in Australia, fell 1% from mid-July to mid-August to US$9.27 per kilogram.
  • Prices of jute fibre in India quoted by the Jute Balers Association (JBA) at the end of August converted to US$ fell 4% from a month earlier to 79 cents per kilogram.
  • Prices of silk in China equalled US$ 28.7 per kilogram at the end of August, compared with US$29.5 per kilogram in July 2022, a change of 3%.
  • Coconut coir fibre in India held at US cents 21 per kilogram in August.

World production of jute and allied fibres is estimated unchanged at 3.2 million tonnes in 2022 compared with 2021. High market prices in 2021 motivated farmers to expand planted area in both Bangladesh and India, but dry weather during June and July will limit yields per hectare. Normal monsoon rains resumed in South Asia during August, too late for the 2022 jute crop (https://www.wgc.de/en/).

Production of coir fibre rose by an average of 18,000 tonnes per year during the past decade, and production was at a record high of 1.12 million tonnes in 2021. Production is expected to remain high in 2022.

Flax has also been trending upward, rising by an average of 27,000 tonnes per year, and production in 2022 is estimated to remain above one million tonnes.

World wool production is forecast up by 5% in 2022 to 1.09 million tonnes (clean), the highest since 2018. Wetter weather in the Southern Hemisphere, following eight years of drought, is allowing farmers to rebuild herds (https://www.wool.com/market-intelligence/).

Natural fibres are heavily-traded commodities, and supply chain disruptions are causing significant economic losses as freight costs remain high and deliveries are delayed.

About 40% of world cotton production moves as fibre in international trade each season. Over half of world jute production moves as fibre or product, and around 55% of world wool production is exported as raw wool. Abaca, flax, and sisal are also heavily traded.

Most natural fibre exports traverse back-haul ocean freight routes from the Western Hemisphere to East Asia and the Middle East, from South Asia to East Asia and Europe, from Africa to East Asia and the Middle East, and from Australia and South Africa to China. Such routes are relatively underserved in the best of times, and reduced sailings since the start of Covid are restricting trade volumes.

As of the end of August, Freightos (https://fbx.freightos.com/) quoted the cost of moving a 40’ container from the United States West Coast to East Asia at $793, compared with $1,020 in March 2022. Nevertheless, average freight costs on back -haul routes used by natural fibres remain approximately triple their pre-covid levels. In addition to ocean freight costs, inland transportation is also affected by high fuel prices and a lack of containers. As one example, charges for inland handling of export containers in Bangladesh, the largest exporter of raw jute, increased by 48 per cent during August.

More information:
DNFI
Source:

Discover Natural Fibres Initiative

Photo: Mark Stebnicki, pexels
16.08.2022

USDA presents new study of Chinese Cotton Textile Industry

  • Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

  • Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

Their study reviewed the regional patterns of China’s cotton textile industry development and identified growing geographic separation between cotton production and textile manufacturing since the 1990s using data from Chinese sources. The study investigated spatial patterns of demand for imported cotton by analyzing lists of Chinese companies applying for a share of the import quota from 2016 to 2022. Multiple regression analysis was used to control for potentially confounding influences when investigating whether companies in coastal provinces were more likely to use imported cotton than similarly sized companies in other regions.

Textile manufacturers — the main consumers of cotton — are concentrated in coastal and central regions where the share of China’s cotton production fell from over 50 percent to 10 percent during 2011–21. These geographic changes are a factor influencing global trade in cotton and textiles. Additionally, the use of forced labor in Xinjiang attracted more attention to the industry, prompting the United States and other countries to ban products produced in the region.

This study reviews the economic, geographic, and policy factors reshaping the industry and influencing the global trade of cotton and textile products. The study also examines data on Chinese companies applying for a share of China’s cotton import quota to gain insight about the demand for imported cotton.

China became the world’s largest producer, consumer, and importer of cotton soon after joining the World Trade Organization (WTO) in 2001. Despite adopting a tariff-rate quota (TRQ) system for cotton imports and issuing supplemental quotas in most years, the large number of cotton goods manufacturers that request shares of the quota suggests demand for imported cotton exceeds  the quota.

While the TRQ was intended to protect China’s cotton farmers, many farmers abandoned the labor-intensive crop as wages rose rapidly in many other industries and other crops produced higher returns. In response, officials encouraged cotton production in the relatively remote region of Xinjiang to prevent China from becoming reliant on imported cotton. Xinjiang growers receive a subsidy payment for cotton, and subsidies for machinery and seeds. A transportation subsidy induces textile manufacturers in eastern and central regions to purchase cotton from Xinjiang, which is about 2,200 to 2,900 miles from most of the country’s textile manufacturers. Financial support and other incentives encourage manufacturers to shift operations to Xinjiang.

Textile manufacturers in China are highly interested in importing cotton due to its lower price and quality. China imports about 20 percent of its cotton, and the United States is a chief exporter of cotton to China. While imported cotton is used in all provinces, manufacturers near the eastern seaboard show a greater propensity for imports. Nevertheless, in all regions, domestic cotton has the largest share of mill use.

Between 2016 and 2022, 1,581 companies applied for a share of the TRQ, and 265 companies applied in all 7 years. Most of these companies also applied for supplemental quotas issued with slightly higher tariffs. This large number of applicants suggests that imports could be even greater if quotas did not limit them. The operation of the quota application process is not public information, but data submitted by applicants suggests access to imported cotton is uneven. About 14 percent of applicants said imported cotton comprised over half of the cotton they used. Another 20 percent of companies requesting import quota did not use any imported cotton, suggesting that many applicants are unable to import. Textile manufacturers coped with limits on cotton imports by increasing their use of synthetic, chemical-based fibers or by importing cotton yarn. From 2000 to 2020, China’s yarn imports doubled from under 1 million metric tons to around 2 million metric tons with Vietnam supplying about 45 percent of that total in 2020.

The number of textile manufacturers in Xinjiang applying for a share of the cotton import quota rose from 37 to 68 between 2016 and 2022. However, imports constituted less than 2 percent of  the cotton Xinjiang applicants reported using—and 66 percent of them reported using no imported cotton—suggesting that applications from Xinjiang textile companies were often denied.
Analysis found that applicants in coastal provinces used more imported cotton than similarly sized applicants in other regions. Each location of a multi-plant company must apply separately for tariff-rate quotas. Textile manufacturers in Xinjiang that requested a share of the import quota included branches of some of China’s largest textile companies, but the analysis found that Xinjiang applicants used less imported cotton than similar manufacturing plants located in other regions. China’s role as a cotton importer appears to have peaked, while other countries are increasing their share of imports.

USDA baseline projections suggest that by 2030 Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey will together account for 47 percent of the world’s cotton imports while China will only account for 24 percent. The study cam be downloaded from the USDA website.

More information:
cotton Cotton USA China Xinjiang
04.08.2022

SGL Carbon: Positive performance in the first half of 2022

  • Sales increase of 10.7% to €549.8 million in the first half of 2022
  • EBITDApre improves by 22.6%, higher than the increase in sales, to €87.9 million
  • Positive business development, price increases and strict cost management led to forecast increase on June 7, 2022

Despite uncertain general conditions in the first six months 2022, SGL Carbon's business model is proving its resilience. After €270.9 million in Q1 2022, SGL Carbon was able to increase sales to €278.9 million in Q2. Accordingly, sales for the first half of 2022 amount to €549.8 million, which corresponds to a sales plus of €53.1 million or 10.7% compared to the same period of the previous year.

The increase in sales was driven in particular by customers in the semiconductor industry and growth in the industrial applications market segment. Demand from the automotive and chemical industries was also encouraging.

  • Sales increase of 10.7% to €549.8 million in the first half of 2022
  • EBITDApre improves by 22.6%, higher than the increase in sales, to €87.9 million
  • Positive business development, price increases and strict cost management led to forecast increase on June 7, 2022

Despite uncertain general conditions in the first six months 2022, SGL Carbon's business model is proving its resilience. After €270.9 million in Q1 2022, SGL Carbon was able to increase sales to €278.9 million in Q2. Accordingly, sales for the first half of 2022 amount to €549.8 million, which corresponds to a sales plus of €53.1 million or 10.7% compared to the same period of the previous year.

The increase in sales was driven in particular by customers in the semiconductor industry and growth in the industrial applications market segment. Demand from the automotive and chemical industries was also encouraging.

EBITDApre, as one of the Group's key performance indicators, improved by €16.2 million (+22.6%) to €87.9 million (H1 2021: €71.7 million). Consequently, the EBITDApre margin increased from 14.4% to 16.0%. In addition to the higher utilization of production capacities due to higher sales, the improvement in earnings was also driven by the largely successful passing-on of higher raw material and energy costs to customers as well as savings from the transformation program.

EBITDApre does not include positive one-off effects and non-recurring items totaling €10.6 million (H1 2021: minus €5.2 million). As a result, EBIT in H1 2022 increased significantly from €38.3 million to €69.6 million. Taking into account the financial result of minus €16.6 million (H1 2021: minus €14.0 million), consolidated net income for the first six months of the current fiscal year amounted to €48.8 million, compared to €17.9 million in the prior-year period.

Business Units
With an increase in sales of €22.2 million (+10.0%) to €243.4 million, the Graphite Solutions (GS) business unit made a major contribution to SGL Carbon’s sales growth. In particular, continued high demand from customers in the semiconductor sector, which represents approximately one third of the segment's sales, led to the positive business development in GS. As a result of the predominantly high-margin business, EBITDApre at GS improved by 22.7% to €54.0 million.

The Process Technology (PT) business unit benefited from the good order situation in the chemical industry in H1 2022 and consequently increased sales to €49.2 million (H1 2021: € 40.8 million). EBITDApre also improved from €0.1 million in the prior year’s first half to €4.1 million in H1 2022.

The Carbon Fibers (CF) business unit benefited in the 1st half 2022 from final deliveries to a major automotive manufacturer whose contract expired as scheduled on June 30, 2022. Segment sales increased by 5.8% year-on-year to €176.0 million. In contrast, EBITDApre at CF decreased by €4.2 million to €28.2 million despite the good order situation and successful price increases. It should be noted that CF was impacted by a special effect from energy derivatives for price hedging in the amount of €9.2 million in the first quarter of 2022.

With an increase in sales of 15.6% to €69.6 million, the Composite Solutions (CS) business unit continued its upward trend. The specialist for customized component solutions for the automotive industry improved its EBITDApre from €5.7 million in the first half of 2021 to the current €9.7 million, based in particular on price and volume effects.

Balance sheet figures
Working capital rose by 11.7% to €381.1 million as of June 30, 2022. This was mainly due to higher inventories (€ +73.9 million) and an offsetting increase in trade payables (€ +29.0 million). A targeted build-up of inventories in critical raw materials due to disruptions in transport routes and the recent Covid lockdown in Shanghai were some of the reasons for the higher inventory levels.

SGL Carbon's net financial debt slightly increased by €6.6 million to €212.9 million as of June 30, 2022 (Dec. 31, 2021: €206.3 million), which was due to a lower free cash flow of €7.5 million for H1 2022 (H1 2021: €56.6 million).

Guidance increase
On June 7, 2022, SGL Carbon raised its sales and earnings guidance for fiscal year 2022. The company now expects sales of €1.1 billion (previously: around €1.0 billion) and EBITDApre of €130 - 150 million (previously: €110 - 130 million). Based on the pleasing business development, realized price increases, a stringent cost management, and taking into account the currently known risks, SGL’s management expects to achieve the earnings forecast for 2022 at the upper end of the stated range.

Source:

SGL Carbon

07.06.2022

SGL Carbon raises sales and earnings guidance for 2022

Based on the good business development in all four Business Units as well as the mostly successful passing on of increased costs for raw materials, energy and transport to customers, the Board of Management of SGL Carbon SE expects to exceed the given guidance for the fiscal year 2022. Accordingly, SGL Carbon SE is increasing its sales and earnings guidance for fiscal year 2022.

The Company expects to exceed the upper end of the stated range of its Group EBITDApre (earnings before interest, taxes and depreciation adjusted by non-recurring items and one-time effects) guidance for the fiscal year 2022 of EUR 110 - 130 million and is raising its EBITDApre guidance for 2022 to EUR 130 - 150 million. Correspondingly, EBITpre1 (earnings before interest and tax adjusted by non-recurring items and one-time effects) is now forecasted to be between EUR 70 - 90 million (previously: EUR 50 - 70 million). The sales guidance is also raised to around EUR 1.1 billion for the current fiscal year, originally expected to be at the level of the previous year (EUR 1,007.0 million).

Based on the good business development in all four Business Units as well as the mostly successful passing on of increased costs for raw materials, energy and transport to customers, the Board of Management of SGL Carbon SE expects to exceed the given guidance for the fiscal year 2022. Accordingly, SGL Carbon SE is increasing its sales and earnings guidance for fiscal year 2022.

The Company expects to exceed the upper end of the stated range of its Group EBITDApre (earnings before interest, taxes and depreciation adjusted by non-recurring items and one-time effects) guidance for the fiscal year 2022 of EUR 110 - 130 million and is raising its EBITDApre guidance for 2022 to EUR 130 - 150 million. Correspondingly, EBITpre1 (earnings before interest and tax adjusted by non-recurring items and one-time effects) is now forecasted to be between EUR 70 - 90 million (previously: EUR 50 - 70 million). The sales guidance is also raised to around EUR 1.1 billion for the current fiscal year, originally expected to be at the level of the previous year (EUR 1,007.0 million).

In line with the development of earnings, the forecast for return on capital employed (ROCE) of originally 5% - 7% is raised to 7% - 9%. The expectations for free cash flow remain unaffected by the forecast increase. Free cash flow is still expected to be significantly lower in 2022 than in the previous year (previous year: EUR 111.5 million).

The new forecast for fiscal 2022 has been drawn up on the basis of the prevailing market environment and assumes no deterioration in conditions, in particular due to the war in Ukraine and its consequences for the global economy. In particular, it is assumed that sufficient electricity and gas will be available and production lines will remain in operation. The communicated medium-term targets up to 2025 remain unaffected by the forecast adjustment.

SGL Carbon will publish its 2022 half-year figures as planned on August 4, 2022.

More information:
SGL Carbon SE
Source:

SGL CARBON SE

07.06.2022

EPTA World Pultrusion Conference 2022 explores composites sustainability

The European Pultrusion Technology Association (EPTA) has published a report from its latest conference, which focuses on advances in sustainability and recycling.

More than 130 professionals from the global pultrusion community gathered at the 16th World Pultrusion Conference in Paris on 5-6 May 2022. Organised by EPTA in collaboration with the American Composites Manufacturers Association (ACMA), the event featured 25 international speakers sharing insight on market trends, developments in materials, processing and simulation technologies, and innovative pultruded applications in key markets such as building and infrastructure, transportation and wind energy.

The European Pultrusion Technology Association (EPTA) has published a report from its latest conference, which focuses on advances in sustainability and recycling.

More than 130 professionals from the global pultrusion community gathered at the 16th World Pultrusion Conference in Paris on 5-6 May 2022. Organised by EPTA in collaboration with the American Composites Manufacturers Association (ACMA), the event featured 25 international speakers sharing insight on market trends, developments in materials, processing and simulation technologies, and innovative pultruded applications in key markets such as building and infrastructure, transportation and wind energy.

‘Bio-pultrusion’:  
Composites based on natural fibres offer a number of benefits, including low density and high specific strength, vibration damping, and heat insulation. The German Institutes for Textile and Fiber Research Denkendorf (DITF) are developing pultrusion processes using bio-based resins and natural fibres. Projects include the BioMat Pavilion at the University of Stuttgart, a lightweight structure which combines ‘bamboo-like’ natural fibre-based pultruded profiles with a tensile membrane.

Applications for recycled carbon fibre (rCF):
The use of rCF in composite components has the potential to reduce their cost and carbon footprint. However, it is currently used to a limited extent since manufacturers are uncertain about the technical performance of available rCF products, how to process them, and the actual benefits achievable. Fraunhofer IGCV is partnering with the Institute for Textile Technology (ITA) in the MAI ÖkoCaP project to investigate the technical, ecological and economic benefits of using rCF in different industrial applications. The results will be made available in a web-based app.

Circularity and recycling:
The European Composites Industry Association (EuCIA) is drafting a circularity roadmap for the composites industry. It has collaborated with the European Cement Association (CEMBUREAU) on a position paper for the EU Commission’s Joint Research Centre (JRC) which outlines the benefits of co-processing end-of-life composites in cement manufacturing, a recycling solution that is compliant with the EU’s Waste Framework Directive and in commercial operation in Germany. Initial studies have indicated that co-processing with composites has the potential to reduce the global warming impact of cement manufacture by up to 16%. Technologies to allow recovery of fibre and/or resin from composites are in development but a better understanding of the life cycle assessment (LCA) impact of these processes is essential. EuCIA’s ‘circularity waterfall,’ a proposed priority system for composites circularity, highlights the continued need for co-processing.

Sustainability along the value chain:
Sustainability is essential for the long-term viability of businesses. Resin manufacturer AOC’s actions to improve sustainability include programmes to reduce energy, waste and greenhouse gas emissions from operations, the development of ‘greener’ and low VOC emission resins, ensuring compliance with chemicals legislation such as REACH, and involvement in EuCIA’s waste management initiatives. Its sustainable resins portfolio includes styrene-free and low-styrene formulations and products manufactured using bio-based raw materials and recycled PET.

Source:

European Pultrusion Technology Association EPTA

Photo: SGL Carbon
05.05.2022

SGL Carbon: Dynamic business development in Q1 2022 continued

  • Low impact of Ukraine war on business performance in 1st quarter
  • 12.2% increase in sales to €270.9 million based on growth in all four business units
  • Adjusted EBITDA improves by 11.5% to €36.8 million

SGL Carbon generated consolidated sales of €270.9 million in Q1 2022 (Q1 2021: €241.5 million). This corresponds to an increase of €29.4 million or 12.2% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to €36.8 million in the reporting period.

  • Low impact of Ukraine war on business performance in 1st quarter
  • 12.2% increase in sales to €270.9 million based on growth in all four business units
  • Adjusted EBITDA improves by 11.5% to €36.8 million

SGL Carbon generated consolidated sales of €270.9 million in Q1 2022 (Q1 2021: €241.5 million). This corresponds to an increase of €29.4 million or 12.2% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to €36.8 million in the reporting period.

Sales development
In the first three months of fiscal 2022, the sales increase of €29.4 million was driven by all four operating business units: Graphite Solutions (+€11.3 million), Carbon Fibers (+€6.6 million), Composite Solutions (+€7.2 million) and Process Technology (+€6.0 million).
In particular, sales to customers in the automotive and semiconductor industries and a significant recovery in the industrial applications segment were key factors in the increase in sales. Sales of the Process Technology business unit to customers in the chemical industry also developed pleasingly. The effects of the war in Ukraine, which has been ongoing since the end of February 2022, had only a little impact on SGL Carbon's sales performance in the 1st quarter.

Earnings development
Despite the increasingly difficult market environment in the course of Q1 2022, associated with temporary supply and production bottlenecks at their customers, temporarily interrupted transport routes, and significantly higher energy prices, SGL Carbon was able to keep the adjusted EBITDA margin almost stable year-on-year at 13.6%.  
Adjusted EBITDA increased by 11.5% to €36.8 million in the reporting period. Higher capacity utilization in the business units and product mix effects contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation. By contrast, higher raw material, energy and logistics costs as of end of February 2022 had a negative impact on earnings. The Carbon Fibers business unit was particularly affected by the energy price increases. One-time expenses of €9.2 million in conjunction with energy transactions burdened the Carbon Fibers business unit in the 1st quarter of 2022.  
To secure our production and delivery capabilities, around 85% of the energy requirements of the entire SGL Carbon for 2022 are price-hedged.
Adjusted EBITDA and EBIT do not include in total positive one-time effects and special items of €8.5 million, among other things from the termination of a heritable building right to a site no longer in use. Taking into account the one-time effects and special items presented as well as depreciation and amortization of €14.1 million, reported EBIT increased by 83.5% to €31.2 million (Q1 2021: €17.0 million). The net profit for the period developed correspondingly and more than tripled from €6.1 million to €21.4 million in a quarter-on-quarter comparison.

Outlook
The sales and earnings figures for the 1st quarter 2022 confirm the stable demand from different market segments. Price increases and volatility in the availability of raw materials, transportation services and energy were largely offset by savings from the transformation program and pricing initiatives at the customers.
For 2022, SGL Carbon continues to expect volatile raw material and energy prices, which were included in their forecast for 2022 at the time of planning. However, there are uncertainties about the extent and duration to which SGL Carbon and the customers will be affected by the impact of the war in Ukraine or temporary supply chain disruptions due to the lockdowns in China. Therefore, SGL Carbon's outlook for fiscal 2022 does not include supply and/or production interruptions at customers or the impact of a possible energy embargo that cannot be estimated at this time.  
SGL Carbon's forecast also implies that factor cost increases can be at least partially passed on to the customers through pricing initiatives. SGL Carbon has also included the revenue and earnings impact from the expiry of a supply contract with a major automobile manufacturer at the end of June 2022 in our forecast.

Source:

SGL Carbon

Trützschler introduces new Comber Machine (c) Trützschler
TCO 21
16.12.2021

Trützschler introduces new Comber Machine

Comber machines from Trützschler are already trusted by customers across the textiles industry and around the globe. The TCO 21 is the latest addition to their portfolio and was built to boost productivity,  ensure quality and support increased automation.

High productivity and raw material savings
One of the key benefits of the TCO 21 is its advanced processing speed. This next-generation combing machine is able to produce at a rate of up to 600 nips per minute. the TCO 21 can also be coordinated with Trützschler’s JUMBO CANS (Ø 1.200 mm). They not only reduce yarn defects due to fewer piecings which leads to quality improvements, but also offer a higher efficiency because of their larger dimensions. This, for example, has positive effects on the number of necessary cans and can transports – and results in lower personnel costs.

Comber machines from Trützschler are already trusted by customers across the textiles industry and around the globe. The TCO 21 is the latest addition to their portfolio and was built to boost productivity,  ensure quality and support increased automation.

High productivity and raw material savings
One of the key benefits of the TCO 21 is its advanced processing speed. This next-generation combing machine is able to produce at a rate of up to 600 nips per minute. the TCO 21 can also be coordinated with Trützschler’s JUMBO CANS (Ø 1.200 mm). They not only reduce yarn defects due to fewer piecings which leads to quality improvements, but also offer a higher efficiency because of their larger dimensions. This, for example, has positive effects on the number of necessary cans and can transports – and results in lower personnel costs.

Excellent yarn quality
The TCO 21 comes with COUNT MONITORING as standard. This feature makes it possible for the machine operator to define limits for count variations via an easy-to-use display. Trützschler’s DISC MONITOR system of sensors measures the count continuously, and the machine alerts the operator and switches off if the limit is exceeded. In addition, the COUNT MONITORING function also includes spectrogram analysis.

Customers can further strengthen their focus on quality by choosing to add the COUNT CONTROL function to the TCO 21. It is managed via the same easy-to-use display, and offers automatic sliver count measurement, as well as spectrogram analysis. It also automatically regulates the main draft during production to balance count variations and ensure the desired sliver count. This feature is particularly attractive for customers who manufacture blends of cotton and synthetic, as it can also be used to avoid variations in the overall yarn composition.

Automatic optimization
The TCO 21 joins the TCO 12 from Trützschler as an combing machine that offers automatic PIECING OPTIMIZER technology, and that finds the right piecing setting without a single laboratory test, because of two functions: First by adjusting the piecing time in the combing cycle (timing function). Whereas the resetting of the detaching point (piecing time) is usually a very time-consuming task, it now takes only a few minutes and is performed automatically at a push on a button. Second the customer is helped to select specific detaching curve types (curve function) for their unique requirements.

Easy operation
The TCO 21 is simple to operate and maintain. The SMART TOUCH display is fast and intuitive, and a Radio-Frequency Identification (RFID) sensor quickly identifies each user and adapts the information on the display to their individual needs. The multi-colored T-LED display provides visual indications of the machine’s status or quality parameters over large distances which enables the operator recognizing them at a glance in the entire spinning mill. The TCO 21 is built with original Trützschler electronics that ensure high performance and durability: Their intelligent cooling system, that has already proven itself in the draw frame TD 10, contributes to a longer service life by reducing the operating temperature of electronic power components. Even if components have to be replaced at some point, the customer can keep their spare parts inventory small, because they can switch also electronics spare parts flexibly between different machine types, e.g. cards and draw frames. The option to add an automatic greasing function completes the easy operation of the TCO 21.

 

Source:

Trützschler

08.09.2021

Indorama Mobility Group: General price increase effective October 1st 2021

The Indorama Mobility Group, a manufacturer of industrial fibers, cords and fabrics, - like other companies - is confronted with significant inflation since the beginning of the year. The global economy has gradually recovered in 2021 from the impact of the COVID-19 pandemic, but is still experiencing very volatile market conditions: The global freight remains unreliable and expensive, cost for energy and global commodities is increasing, and the increasing focus on sustainability and environmental impact is driving compliance cost upward in most part of the world.

In detail:

The Indorama Mobility Group, a manufacturer of industrial fibers, cords and fabrics, - like other companies - is confronted with significant inflation since the beginning of the year. The global economy has gradually recovered in 2021 from the impact of the COVID-19 pandemic, but is still experiencing very volatile market conditions: The global freight remains unreliable and expensive, cost for energy and global commodities is increasing, and the increasing focus on sustainability and environmental impact is driving compliance cost upward in most part of the world.

In detail:

  • Utilities: gas price has tripled in the past few months in Europe (from a level of 15 EUR/MWh in Q4’20 to 45 EUR/MWh recently), while increasing by 50% in USA
  • CO2 emissions and compliance cost: prices for CO2 certificates in Europe have almost doubled, approaching 60 EUR/ton from 30 EUR/ton at the end of last year, while regulations continue to expand the need for CO2 compensation
  • Chemicals and additives (spinfinish, dip chemicals, coating & laminating chemicals): cost have increased by 5%
  • Packaging: prices for standard packaging materials have increased by more than 30%
  • Logistic: despite our local manufacturing footprint which is not fully affected by global freight issues, the regional logistic costs are also increasing up to 20% (road transport)

Despite constant efforts to optimise the cost structure through comprehensive initiatives to improve operations, cost increases have now reached a level, the group said, that can no longer be offset and must be passed on to the market. This is a necessary step to be able to continue supplying high-quality products and services of the broad product portfolio, it said.

More information:
Indorama Mobility Group
Source:

Indorama Mobility Group

(c) Trevira GmbH
08.09.2021

Trevira CS – starting afresh

  • New brand Trevira CS eco

After a challenging 2020 for Trevira CS®, a year in which the coronavirus crisis put pressure on the contract market, in particular on the hotel and event sector, and also on the cruise shipping industry, the market is starting to show some signs of improvement. Numerous new developments are seizing upon the trends that have emerged since the crisis began.

  • New brand Trevira CS eco

After a challenging 2020 for Trevira CS®, a year in which the coronavirus crisis put pressure on the contract market, in particular on the hotel and event sector, and also on the cruise shipping industry, the market is starting to show some signs of improvement. Numerous new developments are seizing upon the trends that have emerged since the crisis began.

Although the coronavirus pandemic had a negative effect on individual business sectors, it also has the potential to open up new market opportunities for flame retardant Trevira CS fabrics in the long run. The increase in people working from home and the longer and more frequent stay within one’s own home have led to a change in perspective in terms of the relevance of interior design. The design of the living space has undergone a revaluation. Sustainability, durability, high quality, and the desire for safe products that contain little to no harmful substances are defining criteria for selecting a new textile interior. The colour range of the new Trevira CS developments is directed specifically towards this trend and often comes across as discreet and close to nature. After Trevira CS products have found their way more and more into private homes, the new Trevira CS collections include numerous attractive textiles not only for the contract sector but also for the residential sector.

In the contract sector, notably in the hotel industry, the trends towards sustainability and quality are likely to continue to grow. Moreover, there is an increase in awareness as far as hygiene requirements are concerned. Textiles that are easy to clean without losing their appearance or their functionality can excel here. Accordingly, products ordinarily used in the healthcare sector might start to be of interest to the hotel and catering industry, public spaces, the transport industry, and to offices. This will apply in particular to areas where there is a regular flow of visitors and where people come into direct contact with fabrics. Antimicrobial textiles provide additional protection in these situations. Besides their flame retardancy, many new Trevira CS products integrate additional functions such as noise or sun protection.

Trevira has launched the Trevira CS eco brand for flame retardant textiles that consist of recycled Trevira products.
The new Trevira CS eco brand unites sustainability and flame retardancy. Trevira offers products for this which have been manufactured through different recycling processes. The flame retardant filament yarns are based on the use of recycled PET bottles (post-consumer recycling). Textiles bearing the Trevira CS eco trademark consist of at least 50% recycled materials.

Trevira uses an agglomeration facility to recycle reusable waste materials from production to manufacture recycled fibres that, after further processing, retain the same quality and performance characteristics as the original products (pre-consumer recycling).

Source:

Trevira GmbH