From the Sector

Bemberg™ gears up for Première Vision - February 11th-13th, Paris, France; with a great deal of novelties and a key statement on sustainability: Let’s Make it Circular! That’s why the Japanese brand of regenerated cellulose fibers joins the fair with two booths, one in the yarn-focused sector – Hall 6 C52 6D53 – the other one in the Smart Creation area, the curated district showcasing cutting-edge sustainable innovation for the textile and fashion business. Hall3 S14.

“We simply could not miss out on the Smart Creation Area as sustainability is the founding pillar of our company,” says SHUNSUKE SATO, sales manager of Bemberg™ by Asahi Kasei. “Indeed, the smart fiber is made from a cotton linter which is pre-consumer material, a natural derived source, that doesn’t deplete forestry resources. The strategy beyond our double presence is to highlight our deep commitment to responsible innovation to a larger target of professionals.”

Let’s take it circular! is the motto at the Smart Creation booth. The lifespan of Bemberg™’s regenerated cellulose fiber derived from cotton is fully circular: from the source to manufacturing. The whole sustainable closed-loop process is supported by the LCA study, signed by ICEA and validated by Paolo Masoni. Recyclability is granted by the Global Recycle Standard - GRS certification by the renown Textile Exchange. An influential guarantee that involves the whole production process and supply chain behind the company’s smart yarns. Bemberg™ yarns are entirely biodegradable and ecotoxicity-free – meaning that at the end of their life circle they break down into the environment leaving no trace in terms of toxic substances as attested by the Innovhub-SSI report.

On show at Première Vision some of the most recent collaborations with GRS-certified partners such as FIVEOL, SMI TESSUTI, TESSITURA UBOLDI, INFINITY, SIDONIOS, MATIAS & ARAUJO, TINTEX, IPEKER, EKOTEN, for fashion fabrics as well as PEZZETTI and BRUNELLO & G.CRESPI from lining partners.

The first Bemberg™ partner to present a commercial collection enriched by Velutine™ Evo is the Portuguese Matias & Araújo. With an innovative spirit, dynamism and a determined entrepreneurial spirit, the company is a leading knitwear producer for the textile industry.

In the Hall 6 Bemberg™ displays key commercial items developed by premium brands such as CAALO that is making its mark in the outerwear market with its Sustainably produced Functional-Luxury proposal. For SS20, CAALO utilized Bemberg™ lining because of the sustainability properties and it's unique colour.

CAALO looks to utilize as much eco-friendly and sustainable materials as possible without compromising on design or quality. This Bemberg™ lining was a perfect fit.

• Sales were significantly down on the previous year, falling by 29% to CHF 760 million
• EBIT margin of around 11% and net profit of around 7% of sales anticipated, non-recurring profit contribution from sale of real estate in Ingolstadt (Germany)
• Order intake up 7% on previous year; order intake amounting to CHF 401.6 million booked in fourth quarter 2019 (4th quarter 2018: CHF 119.0 million)
• First half of 2020 expected to be significantly lower than previous year in terms of sales and earnings
• Further capacity adjustment measures introduced
• Start of construction of Rieter CAMPUS expected during 2020, subject to granting of building permit

The Rieter Group closed the 2019 financial year, as expected, with considerably lower sales than in the previous year. According to the first, unaudited figures, total sales of CHF 760.0 million were achieved, which is 29% down on the previous year (2018: CHF 1 075.2 million). At CHF 926.1 million, order intake was 7% higher than in the prior year period (2018: CHF 868.8 million). Rieter will publish the full annual financial statements and the 2019 Annual Report on March 10, 2020.

Intertextile Shanghai Home Textiles – Autumn Edition will return from 24 – 26 August 2020 at the National Exhibition and Convention Center (Shanghai), organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA). Stepping into its 26th edition, the trade fair will provide exhibitors the perfect opportunity to introduce new products and expand their distribution networks, as well as serving as a source of information and inspiration for professionals in every aspect of the industry.
 
Celebrating its 25th anniversary last August, the Autumn Edition of Intertextile attracted 1,147 exhibitors from 27 countries & regions, as well as 35,390 trade buyers from 117 countries & regions (2018: 104), reflecting the increasing internationalism of Messe Frankfurt’s textile fairs in China, and the growing opportunities for international suppliers to meet a wide range of buyers in Shanghai. The trade fair’s capacity to attract large and diverse crowds has reinforced its status as the leading business platform for the home textile industry in the Asia Pacific region.
 
In the next edition, a large collection of quality Chinese companies, as well as premier overseas brands will once again present the entire spectrum of home and contract textile products including:

• Textile editors
• Whole Home Products
• Windows & Upholstery
• Bedding, Bath, Kitchen & Table
• Carpets & Rugs
• Sun-Protection
• Wallcovering
• Digital Print & Technics
• Fibers, Yarns & Chemicals
• Textile Designs

Opportunities abound in China’s home textiles market
 
“The upcoming Autumn Edition of Intertextile is set to offer suppliers and buyers the best platform to capture new business opportunities, especially as we continue to focus on bringing together more key players from the textiles, interiors, architecture and hospitality sectors in China and internationally,” Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd said.
 
“Over the years, Intertextile has been evolving from a traditional trade fair to an immersive and interactive experience that inspires and engages attendees. Today, the fair is more than a business platform; it also delivers state-of-the-art home trends, valuable networking opportunities, as well as innovative and strategic solutions for brand development through a series of fringe programme events,” Ms Wen further explained.
 
As one of the selected exhibitors featured in the Talks & Tours series at the 2019 fair, Mr Thomas Luys, Sales Manager of LIBECO-LAGAE: “We had quite a diverse range of visitors, including an increase in e-commerce buyers, but also more traditional upholstery fabrics buyers. Our booth was also part of the Talks & Tours, so it was important to tell our story to a diverse range of visitors on this tour.”
 
 
To find out more about this fair, please visit: www.intertextilehome.com.
For more information about Messe Frankfurt textile fairs worldwide, please visit: http://texpertise-network.messefrankfurt.com.

• Focus on Productivity and Efficiency

MS Printing Solutions at the next Heimtextil will focus on presenting textile printing solutions to boost cost-effective and high-quality productions, answering to Industry leaders in home and contract textile who need: productivity, quality and beneficial production process.

Attendees will see a JP4 EVO 3200 printer at work, with Bellagio reactive ink made by JK Group. This is one of MS' solutions which streamlines printing processes, reduces production times and maintenance costs, improving efficiency by:

• making the best use of production buildings, minimizing the space occupied by printers: JP4 EVO is compact and functional.
• taking full advantage of manufacturing-process, reducing downtime therefore improving productivity-performances: JP4 EVO can be fed by external roll unwinder ensuring timing optimization.
• using inks with a custom-made waveform, lowering the most common defects due to the interaction between ink and printheads, improving your productivity and competitiveness

The show will be the occasion for the Technical and Sales Teams to illustrate all details which characterize Minilario.  The printing machine, launched at the last ITMA, is the ideal choice for those searching for: flexibility, quality, speed, energy efficiency and sustainability, all in one.

The 64 print heads installed on the innovative printing carriage allow Minilario to reach the shocking but real printing speed of 18m/min, fitting the Home and contract textile demand of productivity and quality, applying a cost-effective production process.

The show will offer the opportunity to remark MS's sustainability commitment, started with #transparentaswater project based on the 100/90/10 paradigm aimed to engage the whole Textile Printing Industry in a big change. The commitment continued with MS’s adhesion to the “Sustainable Technologies” project launched by ACIMIT which selects textile machinery and systems manufacturers whose production specifications ensure a low environmental impact, combining sustainability and innovation. MS' printing machines may boast “Green Label” as “Suppliers of Sustainable Technologies” (come and visit us to go deeply inside our sustainability commitment).

• Group sales increases by approximately 6 percent compared to the prior year period to 832 million euros due to organic growth in the market segments Digitization, Energy and Chemicals
• Group recurring EBIT at around 54 million euros; adjusted for a positive one-time effect in the prior year approximately on the comparable level of the prior year
• Business unit Composites – Fibers & Materials (CFM) deteriorated substantially in the third quarter 2019 due to the weak development in the market segments Textile Fibers, Wind Energy and Industrial Applications; Graphite Materials & Systems (GMS) developed better than expected on the very good level of the prior quarter reaching overall a record high level in 9M/2019
• Free cash flow from continuing operations improved significantly in the first nine months
• Impairment testing triggers a non-cash impairment charge of approximately 75 million euros in CFM in the third quarter
• Revised guidance of October 25, 2019: Recurring EBIT at CFM in a negative mid-to-high single digit million euros amount and on Group level at 45 to 50 million euros
• Countermeasures initiated to improve earnings of CFM
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: ”The structural growth drivers remain intact in our strategically relevant markets. The countermeasures to improve earnings of CFM will be implemented consistently.”

In the third quarter 2019, the business units of SGL Carbon developed very differently. While Graphite Materials & Systems (GMS) showed better than expected results, Composites – Fibers & Materials (CFM) deteriorated compared to the two previous quarters. This is attributable to the weaker development in the market segments Textile Fibers and Industrial Applications. In total, sales revenue in the first nine months 2019 grew by approximately 6 percent to reach 832 million euros. Recurring Group EBIT after nine months reached approximately 54 million euros. Adjusted for a positive one-time effect in the prior year, this was comparable to the prior year level.

In its ad-hoc notification of October 25, 2019, the company revised its guidance for recurring EBIT of CFM downwards to a negative mid to high single digit million euro amount. On the Group level the company now expects a recurring EBIT at 45 to 50 million euros. Due to the lower starting point in 2019 as well as the ongoing weakness in the market segments Textile Fibers and Industrial Applications in the business unit CFM a non-cash impairment charge in the amount of approximately 75 million euros was recorded in the third quarter 2019. In recent years acquired assets of the former joint ventures with BMW and Benteler were not affected by this impairment. In addition, the impairment charge of CFM led to a valuation allowance on deferred tax assets in the amount of 7.4 million euros. Against this background, SGL Carbon now expects a net result of approximately minus 100 million euros for fiscal year 2019.

• Order intake of CHF 524.5 million after nine months
• Order intake for a major project from Egypt booked in October 2019
• Market situation remains challenging
• Real estate sale in Ingolstadt successfully completed
• Outlook 2019

The cumulative order intake recorded by Rieter Group in the first nine months of 2019 of CHF 524.5 million (2018: CHF 749.8 million) was down by 30% compared to the prior-year period. In the third quarter of 2019, order intake was CHF 146.2 million (Q3 2018: CHF 238.0 million).

Order Intake for a Major Project from Egypt Booked
On October 7, 2019, Rieter booked the order intake for the first six projects with Cotton & Textile Industries Holding Company, Cairo (Egypt) of around CHF 165 million. This amount is thus not included in the figures for the third quarter of 2019 and will positively affect the fourth quarter. The sales are anticipated to be realized in the 2020/2021 financial years. The order includes deliveries of compact and ring spinning systems and it is part of a comprehensive modernization program for the Egyptian textile industry.

Market Situation Remains Challenging
The demand for new machinery remained at a low level in the third quarter of 2019. The primary reasons are existing overcapacity in the spinning mills, the trade conflict between the USA and China, as well as political and economic uncertainties in other regions of importance to Rieter. Rieter's market share continues to be at the level of around 30%.

Real Estate Sale in Ingolstadt Successfully Completed
Rieter completed the real estate sale in Ingolstadt (Germany) to GERCHGROUP of Düsseldorf (Germany) on September 13, 2019. Rieter expects a non-recurring profit contribution from this transaction on a net profit level of around EUR 60 million.

Outlook 2019
Rieter estimates significantly lower sales for the year 2019 as a whole compared to 2018, and expects a significant drop in the result from the ongoing business. EBIT and net profit are anticipated to be significantly above the levels of the previous year due to the non-recurring profit contribution from the sale of real estate in Ingolstadt (Germany). The cost-cutting measures introduced have been implemented to a great extent.

Graf introduces at ShanghaiTex three novelties for the textile market: a new card clothing with up to 30% longer lifetime, a height adjustable comb and a helpful solution for card clothing management.
MULTISHARP, the unique wear resistant alloy for card clothings, increases the lifetime of metallic card clothings on the cylinder by up to 30%. Additionally, the work load of the maintenance team can be minimized by providing longer service cycles and less unplanned downtimes.

The yield on raw material can be increased without compromising the quality requirements – thanks to the continuous height adjustability of the new combs series. The continuous and exact gap setting between nipper and circular comb on each individual combing head provides customers a new level on raw material utilization. Additionally, the maintenance people will appreciate the comfortable and easy installation of the circular comb.

With the card clothing management the overall investment costs can be reduced. This is based on minimizing the operational expenses including optimizing the overall equipment effectiveness. Graf’s card clothing management prolongs the lifetime of flexible flats by up to three times without comprising on the quality parameters throughout the entire life cycle.

Shanghai - ROICA™ lands in Shanghai to showcase its complete range of premium stretch fibers for the modern wardrobe and disclose its visionary approach and strategy for a cutting-edge and sustainable fashion.

On show, leading material innovator Asahi Kasei introduces a premium stretch fiber starting from the ultimate ROICA Eco-Smart™ Family. The certified and multi-awarded range has astonished the textile world for its hyper-performative features. “The new premium stretch is synonymous of transformation: from standard to speciality, from basic to special, from ordinary to clever and from standard to Smart.” Explains Shinichiro Haga, Senior Executive Manager - ROICA™ Division.

Sustainability and a responsible approach are the true core of research and development to create high-tech engineered yarns.Such visionary imprint imbues all ROICA™ innovations:

• ROICA Eco-Smart™ family: A true world-first with the most contemporary sustainable range of responsibly produced premium ingredients. ROICA Eco-Smart™ family offers 2 sustainably designed stretch yarns

- ROICA™ EF is GRS by Textile Exchange certified, thanks to the fact that more than 50% of yarn content comes from the recycling of pre-consumer waste.
- ROICA™ V550 yarn got the Cradle-to-Cradle® Innovation Institute’s GOLD LEVEL Material Health certificate for impacts on human and environmental health. This yarn is also Hohenstein Environment Compatibility Certificated, signifying at its end-of-life, ROICA ™ yarn smartly breaks down without releasing harmful materials.

• ROICA Feel Good™ family: A unique range of advanced stretch yarns that deliver personal performance and measurable wellness, freshness and comfort metrics for travel, sport, leisure and more.
   
• ROICA Colour Perfect™ family: A range of yarns that can give excellent, flawless and world unique colour dimensions in advanced fit solutions.
   
• ROICA Resistance™ family: A high performance range of stretch solutions with performance resistance designed for match particular applications.
   
• ROICA Contour™ family: A range of yarns that create new shaping, stretch and silhouette solutions for a calibrated fit, effortless control, softness, comfort and support.

ROICA™ already entered the most advanced collections of leading brands as: Wolford for exceptional European Skinwear including legwear, Sarah Borghi for hosiery, SITA Active for Smart pret-a-porter,  Daquini for athleisure, Livy for sensual lingerie, SCOTT Racing Team for cycling uniforms, Closed for denim, Un-Sanctioned for running suits, Vitamine A for beachwear and many others.

In Shanghai, ROICA™ is set to stand out as leader in Smart Innovation. As tangible proof of this, the company brings to Intertextile Shanghai some of its ultimate collaborations across China and the Far East.

• Committed To Making a Better World

EUROBIKE, the world’s leading trade fair for the cycling industry, will include ROICA™ smart innovations into the race. Cycle retailers, brands and manufacturers will discover ROICA™ premium stretch that provides comfort and movement as it energizes.

Spearheading the premium stretch market, ROICA™ partners’ materials elevate new standards for high-tech performance that can enhance cycling products to compete responsibly. ROICA™ partners excite you as they show a fantastic range of stretch essentials for cycling clothing, gear, and apparel that offer solid performance perks.

Most importantly, visit ROICA™ partners at EUROBIKE to learn about their ongoing commitment to responsible innovation and creativity by experiencing their advanced responsible developments made with the ROICA Eco-SmartTM Family.

The ROICA Eco-Smart™ family offers two responsible made yarns with outstanding stretch performances that give free rein to designers’ creativity and guarantees the highest quality while complying to the most-cutting edge sustainable standards.

• The ROICA™ EF– GRS (Global Recycled Standard) certified - is made with 58% of pre-consumer recycled content. GRS guarantees its sustainable mission with a certification by the influential Textile Exchange*, one of the most known and recognized global players in the market.
• The ROICA™ V550   Indeed, it proudly breaks down without releasing harmful substance under the testing environment according to Hohenstein Environmental Compatibility certification. Made and engineered by Asahi Kasei R&D team, and produced in ROICA™ German plant only, the yarn offers additional and relevant circular economy advantages linked to material health as proved by a Gold Level Material Health Certificate by the Cradle to Cradle Product Innovation Institute for a safe and biological end of life cycle.

Witness ROICA™ partners as leaders in high-tech performance fabrics for the world of sports for riders that want to stand out. See, feel, imagine and learn why choosing ROICA™ is a winning decision. View the unbeatable collection of well-constructed fabric

• M.I.T.I. SpA (IT), Hall/Stand No. A7-215 partner with ROICA™ since the very beginning, develops and creates from more than 85 years, innovative stretch warp knitted fabrics for high performance sports.
• Payen – ESF (FR), Hall/Stand No. A7 / A7-219, committed to develop durable performant solutions chooses ROICA Resistance™ range of high-tech protection stretch functions.
• Piave Maitex (IT), Hall/Stand No. A7-123 presents AGAIN, the new smart and technically advanced line able to balance performances and sustainable features, formed of highly performing jerseys. Two premium sustainable ingredients have been involved for the creation of AGAIN: Global Recycled Standard (GRS) owned by Textile Exchange - premium stretch fiber ROICA™ EF and perPETual high quality sustainable polyester born from a cost-effective process that reverses engineer consumer waste PET bottles.
• SITIP SpA (IT), Hall/Stand No. A7-213 creates high-tech innovative sports fabrics that are made in Italy including BeHot fabric constructed with ROICA™, providing a new dimension to active performance.
• Sportwear Argentona S.A. (ES) Hall/Stand No. A7-322 based in Spain, these leaders in high-tech tech, optimal performance sports fabrics create specialized structures for all facets of sports including high comfort, elastic and performance.

• Order intake in the first• Order intake in the first half of 2019 amounted to CHF 378.3 million, 26% below the previous year period
• At CHF 416.1 million, sales were 19% down on the previous year period
• EBIT of CHF -1.2 million and net profit of CHF -3.8 million
• Implementation of cost-cutting measures proceeding according to plan
• Innovations successfully launched at ITMA 2019 in Barcelona
• Major order from Egypt signed – worth around CHF 180 million
• Completion of real estate sale in Ingolstadt (Germany) expected in the third quarter 2019
• Outlook unchanged compared to spring 2019

In the first half of 2019, Rieter posted an order intake of CHF 378.3 million (first half year 2018: CHF 511.8 million). This represents a decline of around 26% compared to the previous year period. As already reported, the main reason was low demand in the new machinery business (Business Group Machines & Systems: -34%). Rieter understands that market share remained unchanged at the previous year’s level of around 30%. Order backlog as at June 30, 2019 was CHF 295 million (December 31, 2018: CHF 325 million).