From the Sector

Linen, uniform and facility services operators certified Hygienically Clean Healthcare presented evidence today to members of the Association for Professionals in Infection Control and Epidemiology (APIC) that medical care facilities should more carefully control public wearing of employee uniforms.

Engaging visitors to the Hygienically Clean exhibit at APIC’s 2018 expo, certification staff had a receptive audience for the data. Most attendees interviewed indicated they support preventing employees from wearing scrubs and other healthcare apparel outside medical facilities. Many said they have policies to this effect but find these difficult to enforce.

The 3-day APIC exhibit is building awareness of Hygienically Clean certified providers among infection preventionists: individuals who recommend what linen and uniform service their facilities should use. Discussing issues with them such as uniform hygiene positions certified operators as the foremost laundry science experts with an unprecedented commitment to educating healthcare professionals regarding linen and laundry.

Visitors to the Hygienically Clean exhibit received Curbing the Infection Risks of Healthcare Garments, a brief compendium of studies and journal articles that point to the risk-reduction value of professionally laundering employees’ garments, worth the additional cost to a healthcare facility that currently makes employees responsible for washing them.

Hygienically Clean staff noted that TRSA, the global association for the linen and uniform industry that administers the certification program, has begun planning to raise the issue’s profile with healthcare industry stakeholders. TRSA’s Healthcare Committee has formed a task force on the matter. Staff has contacted TRSA associate members (suppliers to the industry) who manufacture scrubs, lab coats and other healthcare employee garments to explore promoting a new voluntary standard that would urge medical providers to prevent wearing these in public.

An Association of Perioperative Registered Nurses (AORN) standard currently performs this role regarding garments worn in surgical suites. TRSA will weigh the possibility of supporting creation of a much broader measure, covering all clinical functions with discernible risk of pathogen transmission from healthcare garments to patients and the public.

As TRSA investigates courses of action, hoping to involve such stakeholder groups, Hygienically Clean certified providers will continue to point to the mounting evidence of the risks of garments carrying pathogens out of healthcare facilities and inadequate domestic laundering bringing them in.

In contrast, contracting with a Hygienically Clean provider, whose processes (laundry practices) are verified and outcomes (product cleanliness) are quantified by third parties, provides maximum confidence that all garments used in a healthcare setting have diminished presence of harmful bacteria. It’s a cost-effective way to essentially eliminate this single risk of infection transmission, unlike so many others that require preventionists to constantly guard against.

European cybersecurity company Nixu announced that it has signed a contract for cybersecurity cooperation with its long-term, globally operating industrial client. The ongoing contract now signed between the parties has an estimated total value of 3,9 million euros during three years.

The contract includes a large selection of Nixu’s holistic cybersecurity services. A new area in the contract is the development of continuous cybersecurity monitoring of Industrial IoT environment. The monitoring also covers the client’s traditional IT systems.

Petri Kairinen, CEO of Nixu: “I am pleased that our cooperation continues to grow; it is our strategic goal to provide reliable and comprehensive cybersecurity partnership to our customers. The services we deliver also relate to one of our main focus areas, industrial IoT. The significance of industrial IoT will only grow with the further digitalization of society and business. Nixu is excited to be involved in building cybersecurity for the Internet of Things together with our clients and enabling new business opportunities in the future."

The automotive market is undergoing a period of great change. Global demand for light vehicles is increasing, but at slower rates than seen in previous years, and this is resulting in ever greater competition between carmakers. At the same time, the technological capabilities that can be offered are advancing rapidly. Areas such as autonomous driving, connectivity, interior comfort and the customization of vehicles in line with personal taste are becoming key ways that manufacturers can differentiate themselves and win market share. Indeed, automotive supplier Lear, recently unveiled a new biometric ‘smart’ seat, that tracks a driver’s health indicators.

These trends are having a knock-on effect for suppliers. For original equipment manufacturers (OEMs), being able to satisfy diverse consumer preferences is now considered more of a success factor than getting a vehicle to production faster than the competition. Across the automotive supply chain — and especially for those involved in the production of car seats and interiors — a growing emphasis on interior styling and luxury components has created new challenges that are further compounded by increasing cost pressures.

Although news coverage about the automotive industry tends to focus on such innovations as ‘driverless’ cars and ‘intelligent’ vehicles, one of the most farreaching changes occurring is this trend towards personalization: how automotive manufacturers are managing to make mass-produced items unique. Not only are manufacturers increasing the number of models they are offering but also the options available to a consumer per model. The Vauxhall Adam is a case in point: consumers can have more than 1 million different combinations when they order the car.

To cope with these challenges, suppliers will need to re-evaluate and improve their production processes. Within this context, the integration of smart solutions and services, and the replacement of production tools that are incompatible with connected factory concepts, will be vital. The combination of Software as a Service (SaaS) with the cloud is already opening up new horizons for innovation. Factories remain at the heart of the value chain. But Industry 4.0 is revolutionizing mass production, allowing more and more large-scale, personalized — and profitable — manufacturing, with greater quality and no added costs or delays.

As customer expectations reach new levels, it is especially important that suppliers in the automotive cutting value chain ramp up their transformation, adopting the technologies and services shaping Industry 4.0. For years, OEMs and suppliers alike have used foam and frames to develop patterns for producing seat covers in material or leather. The automotive industry was among the first to use sophisticated 3D computer-aided design (CAD) programs for the design and development of vehicles. But it has taken time for this technology to be used extensively for seat covers. Although 80% of fabric seating and interiors are currently cut digitally, only 10% of leather seats are cut using this method. The majority of suppliers of automotive leather seating still rely heavily on manual cutting equipment, such as die and roller presses.

To gain the agility and flexibility to remain relevant and competitive in a market that is dictating more change, variants, and faster reaction times, close cooperation between OEMs and suppliers is necessary. For if even one aspect of the process fails to provide sufficient flexibility, speed to market and consistent quality, then the entire chain will be impacted.

In such a complicated and fast-moving market, only the most adaptable and innovative companies will succeed. The solutions that form part of the Industry 4.0 framework will help give suppliers the capacity to adapt and thrive in this new environment. For more Information please find the complete White Paper attached.

Wilmington, MA – March 1, 2018 - Koch Membrane Systems, Inc. (KMS), a global leader in membrane filtration technologies, announced today that it has provided PURON® Membrane Bio-Reactor (MBR) modules as part of a system upgrade to the wastewater treatment facility of KPR Mill Limited. KPR Mill is one of the largest apparel manufacturing companies in India. KPR Mill decided to upgrade their wastewater treatment facility from an old conventional plant to an advanced MBR technology due to its environmental commitment to ensure zero liquid discharge (ZLD) by recycling 100% of their wastewater. Among the key reasons for selecting the PURON® MBR modules are its unique design, including single header and central aeration, reliable and consistent operation, and strong after-market support from KMS.
 
KPR Mill has been using a conventional Effluent Treatment Plant (ETP).  Their old technology involved high chemicals consumption which required high maintenance levels, resulting in frequent production shut downs due to ETP failures.  The new MBR plant is designed to handle 3000 m³/day of textile effluent, utilizing two MBR trains. Initial results show that KPR Mill has reduced chemical costs and eliminated downtime, maximizing textile production. In addition to savings in operational cost and production optimization, KPR strives for an eco-friendly textile processing system. KPR’s selection of PURON® membranes help them achieve their goals of environmental sustainability.
 
“The membrane bioreactor technology from KMS operates very reliably and has resulted in a significant reduction of chemical, operating and maintenance costs of about 10%,” said Mr. C.R. Ananda Krishnan, executive director of KPR Mill Limited. “And as we are a trend setter in using eco-friendly advanced technologies, we were happy to have PURON® MBR as a technology partner who fits our needs and our vision.”
 
“KMS has developed advanced membrane solutions for the textile industry,” said Mr. Manny Singh, President of KMS. “Our products and services help the industry treat wastewater to meet strict discharge and reuse targets, and create value through various chemical recovery processes.”

On Febuary 20, 2018 – Hexcel congratulated Airbus on delivering the first A350-1000 to Qatar Airways earlier today, following successful FAA and EASA Type Certification on November 21.
Hexcel is a major supplier of advanced materials for the A350 XWB program, and composite materials make a significant contribution to the weight savings, performance and fuel efficiency of both aircraft in the family, the A350-900 and the A350-1000. This stretched version of the aircraft is 7 meters longer than the A350-900, carries an additional 40 seats, and offers similar unrivalled comfort and efficiency. Both versions are powered by latest generation Rolls-Royce Trent XWB engines.

Hexcel’s HexPly® M21E/IMA carbon fiber/epoxy prepreg is used to manufacture all composite primary structures of the aircraft, including the fuselage panels, keel beam, wing and empennage. The lower wing cover is the biggest single civil aviation part ever made from carbon fiber and spans 32 meters long.

A further advancement is the introduction of CFRP in other structural components such as the pylon upper spar and door surround. For the first time on an Airbus aircraft, Hexcel’s HexMC® carbon fiber/epoxy molding compound has also been used for the A350-1000 fuselage crutches.

“I send my congratulations to Airbus on delivering the first A350-1000 to Qatar Airways,” said Nick Stanage, Hexcel Chairman, CEO and President. “Hexcel is proud to be a partner-supplier to Airbus and to have Hexcel carbon fiber and composite materials incorporated into so many structural parts in the A350 XWB family.”

The market for the production of carpet yarn is increasingly evolving towards more demanding processes. However, beyond commodity products, standard plants can no longer fully exploit their advantages. From 20th to 22nd March 2018, Oerlikon Neumag will be presenting an economical alternative in Shanghai in hall W3, booth F03 at the Domotex asia/Chinafloor, the leading floor covering trade fair in the Asia-Pacific region: the BCF plant Sytec One with single-end technology.

If the requirements for the production of BCF yarns increase, for example, from recycled polyester or fine filaments, then this can also lead to higher breakage rates. Highly standardised production plants must then often strike compromises with regard to throughput, quality or cost-efficiency. In such cases, the Sytec One offers a good solution instead of the mostly three-end technology plants for standard processes.

Single-end technology with 98% productivity

This BCF plant works with only one yarn (end) per position, making it ideal for demanding production processes. The reason: when a yarn break occurs only one yarn tears, all other yarns continue to run. This not only simplifies troubleshooting, it also reduces the re-threading time. In addition, less waste is produced. As a result, the productivity of the Sytec One is still over 98% for ten breakages a day, while a plant with three-end technology only reaches around 92%.

Faster processes due to a straight yarn path

In addition, the absolutely straight yarn path of the Sytec One enables significantly higher process speeds of up to 15% in spinning and texturing processes compared to multi-end technologies. Higher total titers of up to 6,000 dtex can also be produced without any problems. The gentle yarn guidance also ensures minimum friction on the individual filaments. This means less yarn breaks and a more stable process.

Optimised key component: spinning pack

Last but not least, the engineers at Oerlikon Neumag have developed a new design for the spinning pack. This central component of every BCF machine significantly influences the yarn quality. The corresponding solution for the Sytec One optimises the polymer flow in the spin pack, thus reducing the polymer dwell time. This leads to shorter product and colour change times and increases the plant efficiency. In addition, the spinning packs were widened so that yarns with up to 500 filaments can now be produced.

The product mix is decisive

In view of these advantages, the single-end Sytec One is recommended for processes with high breakage rates, fine filaments, frequent colour changes or in general when demanding processes take up an increasing share in the business. "The product mix is decisive for the choice of technology," sums up Alfred Czaplinski, Sales Manager BCF at Oerlikon Neumag. "We are happy to advise on the optimal solution and offer both single-end and three-end plant technologies." 

Good business at the Domotex Hanover, Germany

In the run-up to the trade fair, the Domotex Hanover in mid-January was already proving to be a promising harbinger. With four lively trade fair days and contract conclusions in the lower double-digit million euro range, mainly from the European and Asian markets, the order intake for Oerlikon Neumag was very good.

At this year's Heimtextil, which took place from 9-12 January in Frankfurt, Trevira impressed visitors with a brand new fair concept. The company worked together with sixteen of its biggest customers to create a joint booth covering 1,305 square metres of Hall 4.2, drawing a large crowd.

Head of Marketing, Anke Vollenbröker, explained, "Thanks to our new approach and booth concept, we were able to present our brand Trevira CS in an open and welcoming manner plus highlight the good relationship we have with our customers."

Trevira CEO Klaus Holz added, "We are really pleased with the very positive feedback we have had from all sides in response to our grand Trevira CS joint booth. We would like to thank everyone who has contributed to the booth's success. The extremely positive market reaction has reassured us that this is a concept we can build on in the future."

A Trevira exhibition formed the centrepiece of the joint booth, showcasing the winning fabrics from the 2018 Trevira CS Creativity Competition, which this year featured "Colour" as its major theme. At the heart of the display, visitors could find out more about Trevira with the help of twelve tablets providing information in a variety of formats, including a staff presentation and a flyer about the new Trevira Sinfineco® brand.

Encircling this core and thereby completing the joint booth concept, sixteen major customers grouped their individual stands around this centrepiece to display their own new Trevira CS collections for residential and contract usage. The customers joining Trevira to create the booth were Baumann Dekor Ges.m.b.H., Engelbert E. Stieger AG, FIDIVI Tessitura Vergnano S.p.A., Georg + Otto Friedrich, Jenny Fabrics AG, Johan van den Acker Textielfabriek B.V., Mattes & Ammann GmbH & Co. KG, Pugi R.G. S.R.L., Spandauer Velours GmbH & Co. KG, SR Webatex GmbH / Getzner Textil AG, Swisstulle AG, Tessitura Mario Ghioldi & C. srl, Torcitura Fibre Sintetiche S.p.A., Torcitura Lei Tsu S.r.l. / Ilcat S.p.A., Vlnap a.s. / Wagenfelder Spinning Group and Wintex S.r.l..

Another major section of the Trevira booth was dedicated to the world of acoustics. Increasingly, customers are (re)discovering textiles as a way to significantly improve the quality of room acoustics, and this part of the booth also attracted numerous visitors.

A special highlight at the joint booth were the Trevira CS sports shoes, worn by Trevira staff as a key element of the brand's trade fair outfit. The shoes are an Adidas Originals Special Edition of the iconic Stan Smith Silhouette, which Adidas manufactured in cooperation with Kvadrat.

In keeping with annual tradition, the new Trevira CS Gold and Silver Club members were announced during the Heimtextil fair. The new members were presented with their awards at a formal ceremony on Tuesday evening (9 January).

Geleen, NL - Royal DSM, a global science-based company active in health, nutrition and materials, today announces that DSM-Niaga and ECOR are to start a research collaboration. The collaboration will focus on developing fully recyclable and healthier alternatives for particleboard, MDF and other panel materials which can be used in industries such as building & construction, furniture, interior decoration and displays. ECOR offers technology for circular materials and has an R&D facility in Venlo, the Netherlands.

Looking at the piles of waste generated by the interior and construction industries, design for recycling is inevitable. Both ECOR and DSM-Niaga have been redesigning products to be fully recyclable back into the same product. The irreversible combination of materials and ingredients used in most products made with MDF and particleboard is the biggest challenge for technically and economically feasible recycling. Both ECOR and DSM-Niaga want to outsmart complexity for healthier and recyclable products.

Eric Logtens, CEO ECOR-NOBLE Environmental Benelux commented: “The concept that traditional materials like tabletops are up for incineration or disposal after their life cycle will be eliminated. Combining ECOR and Niaga® technologies, the core materials of products can be made from recycled content, and can be fully recycled after use.”

Chris Reutelingsperger, Chief Technology Officer DSM-Niaga commented: “By combining ECOR and Niaga, waste becomes a treasure. I can’t stop thinking of all the possibilities, and I hope that designers will approach us for ideas to make beautiful products and challenge us to broaden the possibilities of these technologies.”

In recent months ECOR and DSM-Niaga explored a collaboration by combining each other’s technologies. The technology of ECOR can make materials from natural fibers, with water, pressure and heat alone. DSM-Niaga manufactures products by using a reversible adhesive. This adhesive enables easy decoupling of different material layers, for full recovery and high value recycling. Both technologies were combined and tested in diverse product applications, like furniture and displays. The preliminary results led to further investigating of applications and will lead to new fully recyclable products.

Both technologies combined offer a fully recyclable alternative to all products made from MDF and particleboard, without compromising on material safety, quality, and recyclability. The joint objective of both companies is to offer manufacturing processes to local companies, solving local waste problems and boosting local economies on a global scale.

Beijing - Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017.

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.   

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.” 

About JD.com, Inc.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017, JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

About Tencent Holdings Limited

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China. Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth. Tencent invests heavily in people and innovation, enabling us to evolve with the Internet. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, statements regarding the expected closing of the transactions and the quotations from management in this announcement are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to, those included in JD.com’s and Vipshop’s filings with the SEC and in Tencent’s filings with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and none of Tencent, JD.com or Vipshop undertake any duty to update such information, except as required under applicable law.

• Revenue up 9.4 percent to EUR 1,726.6 mn
• EBITDA improvement of 23.9 percent to EUR 397.1 mn
• Retail bond of EUR 120 mn redeemed – Lenzing with net liquidity as at end of September
• State-of-the-art application innovation center opened in Hong Kong

Lenzing – The Lenzing Group generated a substantial increase in revenue and earnings in the first nine months of the 2017 financial year compared to the prior-year period. The company is continuing the implementation of its Group strategy sCore TEN in order to further expand the offering of specialty fibers and be even closer to its customers and business partners.

Consolidated revenue climbed 9.4 percent year-on-year to EUR 1,726.6 mn. This increase is mainly attributable to higher prices for all three fiber generations. Consolidated earnings before tax, depreciation and amortization (EBITDA) rose 23.9 percent to EUR 397.1 mn, corresponding to an EBITDA margin of 23 percent, up from 20.3 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 34.6 percent to EUR 298.4 mn, resulting in a higher EBIT margin of 17.3 percent (Q1-3 2016: 14 percent). The profit for the period improved by 35.3 percent to EUR 219.3 mn, and earnings per share rose 36 percent to EUR 8.12 per share. In September Lenzing redeemed the retail bond of EUR 120 mn. At the end of the reporting period the Group had net liquidity of EUR 16.9 mn.

“In the first three quarters of 2017, we successfully captured value in a very positive market environment and we continue to implement the sCore TEN strategy with great discipline. The opening of our new application innovation center in Hong Kong is an important step to boost our regional innovation capabilities. We were particularly proud to launch TENCELTM Luxe as a sign of Lenzing’s ongoing commitment to innovation and sustainability”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “After three excellent quarters we are confident to deliver substantially better operating results in 2017 compared to 2016, but at the same time we do expect more headwinds in 2018.”

Focus on customer intimacy

In September 2017, the Lenzing Group opened a new application innovation center (AIC) in Hong Kong, thus setting a further milestone in strengthening its innovation offering to all partners along the value chain. New applications for Lenzing fibers will be developed and tested at the new facility, among them applications for recent innovations such as the TENCELTM Luxe branded lyocell filament, the RefibraTM branded lyocell fiber and the EcoVeroTM branded viscose fiber.

Furthermore, new sales and marketing offices were opened in Turkey and South Korea in the first half of 2017. The direct contact to customers and well-equipped showrooms featuring products made of LenzingTM fibers serve as the basis for providing even better customer support.

Investment program in progress

The Lenzing Group aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020. Following the capacity expansion initiatives in Heiligenkreuz (Austria) and Mobile, Alabama (USA) which are both underway, Lenzing announced its intention to construct the next plant to produce TENCEL® fibers in Thailand.

A new era of sustainable production

In October 2017, the Lenzing Group presented a new product, TENCELTM Luxe, at an exclusive event held in Paris. The TENCELTM Luxe branded filament yarn represents Lenzing’s entry in the filament market. This fiber will support the Lenzing Group’s path towards becoming a true specialty player in the market for botanic materials derived from the sustainable raw material wood.

The launch volumes of TENCELTM Luxe are being produced at the Lenzing site. The basic engineering for a commercial scale plant was commenced.

Outlook
Demand development on the global fiber market remains positive within the context of a generally friendly macroeconomic environment. Lenzing expects wood-based cellulose fibers to grow at an even higher rate than the overall fiber market. After three excellent quarters, the Lenzing Group will achieve an operating result in 2017 that is significantly better than 2016.

For 2018, Lenzing sees a number of somewhat opposing factors that limit visibility regarding fiber price developments. Overall market demand is expected to remain high. However, the Group expects a substantial increase on the supply side, especially for viscose but also for cotton. Price trends for selected key raw materials, especially caustic soda, are difficult to predict. Against this background the Lenzing Group expects a much more challenging market environment for standard viscose during the upcoming quarters.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. The Group initiated its transformation from a volume-oriented viscose player to a value-oriented specialty fiber player at the end of 2015, and will continue the disciplined implementation of its business strategy.