From the Sector

• Since the end of March 2020, COVID-19 has led to very low demand in all Business Groups
• Comprehensive crisis management implemented
• Loss in the mid double-digit million range expected in the first half of 2020
• Plans to introduce short-time working to adjust capacity in Switzerland and Germany
• Strategy will continue to be implemented

Due to COVID-19, a large number of spinning mills have stopped production worldwide. Since the end of March 2020, this has led to low demand for spare parts and wear & tear parts and delays in testing programs during the development of new machines. Customers are postponing investment projects or unable to implement them due to restrictions imposed by national governments. This results in low demand for new machines.

Comprehensive crisis management
Rieter has implemented comprehensive crisis management. Priorities are being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide.
The order backlog of well in excess of CHF 500 million is being processed largely according to plan, despite the existing bottlenecks in the supply chains. Less than 5% of the orders in the order backlog have been canceled.
Rieter has already implemented measures to ensure liquidity and reduce costs. The company has good net liquidity and undrawn credit lines in the mid three-digit million range.
Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level.

Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level. The effects of COVID-19 will place an additional burden on the first half of 2020. Rieter therefore expects sales in the first half of 2020 to be less than CHF 300 million. Despite the countermeasures implemented at the net profit level, this will lead to a loss in the mid double-digit million range.

Plans to introduce short-time working to adjust capacity
Rieter plans to apply for short-time working for the areas with forecasted low capacity utilization at the locations in Switzerland and Germany. The application will be for 40% short-time working in the third quarter of 2020. Talks with staff representatives will begin next week.
As a sign of solidarity, Rieter’s Board of Directors, Group Executive Committee and the senior management will waive 10%-20% of their salaries temporarily.

Implementation of the strategy
In recent years, Rieter has consistently implemented the strategy based on innovation leadership, strengthening the business in components, spare parts and services and the adjustment of cost structures. The company intends to forge ahead with the implementation of the strategy in the coming months, thus strengthening its market position for the time after the COVID-19 pandemic.
The next information on the course of business is planned with the publication of the half-year results on July 16, 2020
 

ITM International Textile Machinery Exhibition and HIGHTEX International Technical Textiles and Nonwoven Exhibition, held every two years in partnership with Tüyap Tüm Fuarcılık Inc. and Teknik Fuarcılık Inc., and in cooperation with TEMSAD, were planned to be held between June 2-6 this year. However, as effects of Corona virus (Covid-19) continue to increasingly impact all the world, ITM and HIGHTEX exhibitions had been postponed to 14-18 July 2020, but it has been announced that the events have been rescheduled to 22-26 June 2021. 

Exhibitions Preparation Continue
Preparations for ITM and HIGHTEX 2021 Exhibitions continue at full steam to bring together hundreds of manufacturers and global investors who develop leading technologies in their fields. The latest technologies and new products to be displayed at ITM and HIGHTEX Exhibitions, which will open their doors in Istanbul Tuyap Fair Convention and Congress Center next year, will meet with textile investors from all over the world.
 
ITM 2018, where textile machinery leaders exhibited their latest technological products, turned into a trade show with global launches and hosted one of the largest meetings in the world, with 1150 exhibitors from 64 countries and 58.942 visitors (14.248 of them foreigners) from 94 countries.

The two brands have been working together to develop unique concepts for FW2019 and SS2020 collection, starting from premium ISKO™ denim.

Each garment is sartorially and carefully thought out to result in a beautiful product that is respectful of people and the planet.Excellence is in the detail and DW knows it well. The Italian brand always focused on quality standards and craftmanship to develope its collections.
From fabrics to stitching to accessories, every small element is carefully envisioned and developed to create garments are safe for the planet and its people. With cutting-edge technologies and forefront treatments being part of the process, the partnership with ISKO, one of the leading denim ingredient brands, came naturally – the next step forward in a journey toward distinction.

Being the first mill in the world to be awarded both Nordic Swan Ecolabel and EU Ecolabel, the company provided responsible solutions to better define DW’s vision. Combined with the brand’s tradition and expertise, the fabrics developed by ISKO the denim pieces are unite responsibility and quality, according to the mill’s Responsible Innovation™ approach.
The result is the five pockets Milano model and the American pocket Enea pant, both available in different washes and colors.

Pinko has finally re-open its stores inthis occasion will launch a special project dedicated to its loyal customers. Pinkoi s glad to announce the official launcho f the Concierge project, which includes a series of exclusive services to make the shopping experience even more exciting and which at the same time guarantees an innovative, functional integration between physical andd digital retail.

To meet the customers needs ,the Concierge program includes three main services.
In particular, those who love to shop at home but cannot renounce the charm of brick- and mortastore, Pinko offers a personal shopper, who will live from the boutique follow the wishes of the customer, who will have the opportunity to see the clothes worn by a model.
Those who want indulge in an exclusive instore shopping session will be able to enjoy their time with a driver.
Last but not least Pinko also unveils the Surprise Box service, available only on invite to the Pinkoclub. The brands fashion stylists will make a specialised selection of ready to wear pieces and accesoires based on the customers preferences. When the Surprise Box arrives, the customers has three days to decide what to keep and what to send back.

In these actions Pinko tries new innovative and creative ideas, breaking the rules of traditional retail. Pinko wants to focus on a unique shopping experience based on the individual needs.
 

Protective masks for Europe
With FleeceforEurope and Lindenpartner, Düsseldorf-based Kloepfel Group purchasing consultancy and Berlin-based industrial consultancy Bechinger & Heymann Holding plan to manufacture and distribute up to 50 million protection class FFP1 through FFP3 respiratory masks a month exclusively for the European market from the beginning of fall. And the primary focus will be on quality.
With protective masks – including those used in operating rooms – this quality is provided above all by  virus-absorbing nonwovens. And these will be manufactured by ‘FleeceforEurope’ using an Oerlikon Nonwoven meltblown system.
But masks effectively protecting against infections can only be guaranteed with the right quality. A crucial factor in this is the inside of the mask. Because the nonwoven used in protection class FFP1 through FFP3 respiratory masks plays a decisive role.
Here, the meltblown technology from Oerlikon Nonwoven will be deployed. In a special, patented process, the fibers laid into a nonwoven fabric during manufacture are subsequently electrostatically-charged, before the material is further processed downstream.

European market for protective masks with a promising future
Those responsible at Oerlikon Nonwoven and FleeceforEurope, which will primarily focus on producing high-end nonwovens, and Lindenpartner, which will manufacture and distribute the protective masks, are certain of one thing: the market for protective masks has a very promising long-term future in Europe.
What has been commonplace in Asia for many years now will also become normal in Europe. People will be increasingly wearing face masks when venturing out, in order to better protect themselves against health risks such as the current pandemic and also against increasing environmental pollution in the form of  fine particles and exhaust fumes in the future. A

Medical face masks from a vending machine
Mask producer Lindenpartner has already secured supplies of nonwovens and will be producing face masks for the European healthcare sector over the coming weeks. To fight the coronavirus pandemic, Lindenpartner is planning to install 100 self-service face mask vending machines in Germany over the next four weeks, positioning them in publicly-accessible places such as shopping centers and airports, for example.

• AACOMA - Accelerate advanced composite manufacturing
• EMR Region Belgium, the Netherlands & Germany area hot spot for the future of lightweight materials and technologies

The Euregio Meuse-Rhine provides a huge potential with its many highly innovative, leading companies and especially SMEs which are active in the area of advanced material manufacturing in many industrial sectors, such as Automotive, Aerospace, Electronics, Building and Infrastructure, etc. The advanced material sector is growing, with a consolidated offer, ranging from raw material producers over technology development to production, research and development as well as industrial OEMs.

Interreg Euregio Meuse-Rhine invests EUR 96 million from the European Regional Development Fund (ERDF) in the period 2014-2020. Through the investments in cross-border projects, the European Union invests in the economic development, innovation, territorial development and social inclusion and education of this region.

Project

The Euregio Meuse-Rhine is a potential hot-spot for the further development of advanced material and process technologies. Technical Centers and Institutes around Aachen/Germany, Liège/Belgium and Eindhoven/The Netherlands were awarded with this new project AACOMA.

Innovative material design and advanced manufacturing provide large opportunities for SMEs. The AACOMA project kick-off took place in Aachen at the Campus of the RWTH University of technology in 1 Q 2020. The aim of the project, which is running for 3 years until 2023 with a budget of €3 Mio, is to connect SMEs with innovation hot-spots like institutes and technical centers.
Seven partners from all three regions will carry the project out: Centexbel is the project leader and gets support by University of Liège, Sirris and Flanders Make from Belgium, as well as Fontys University of Applied Science and AMIBM of Maastricht University in the Netherlands and AMAC in Germany.

Statements

Bernard Paquet, Project Coordinator from Centexbel/ Belgium stated:
“Centexbel, with a strong experience in textile and composites, will identify with its Interreg partners and an advisory board of international experts several demonstrators which will enable an accelerated advanced manufacturing of composite parts. This could include new materials and intermediates, high performance additives, bio-based products and new composites by additive manufacturing”.

Michael Effing, Managing Director of AMAC/ Germany said:
“The major goal of the project is to connect around 200 innovative SMEs with each other and establish the links to the world-class institutes in the EMR region. We will facilitate 6 roadshow events, addressing key topics like automated manufacturing, additive manufacturing or bio-based material systems combined with match making and training events. The first roadshow will be held on September 24, 2020 at the Aachen Campus of the RWTH University of Technology.”

Prof. Gunnar Seide from the AMIBM/The Netherlands continued:  
“Our AMIBM offers already an international master program on bio-based materials. The AACOMA project will be an important element for transborder research and will identify new players in the value chain coming from the EMR region. Innovative companies find markets for their new bio-based building blocks, chemicals and polymers. Their success stories and upcoming technological breakthroughs are needed for a sustainable future.”

Mr Atte Virtanen has been appointed Head of Business Development at the Fortum Bio2X bioeconomy programme as of 1 May 2020. Atte will play a key role in establishing Bio2X partnerships, helping partners to advance more sustainable businesses, as well as developing industrial biorefinery operations together with the programme team.

Before joining Fortum, Atte was working 10 years in the Netherlands for Trespa International B.V and in Italy for Arpa Industriale S.p.A. In both companies, he was leading R&D activities in the areas of cellulose materials and thermosetting resins. In addition, Atte gained experience from production environment during his time at Stora Enso’s Kotka mills, where he worked several years both in paper production and in a paper impregnating plant.

Over the years, Fortum Bio2X has built a team with a focus on research and development, including piloting different production technologies. The programme is now moving on to the next phase by developing competencies in operations and maintenance. As part of this phase, Atte will help to shift the attention to commercializing the biomass fractions.

The Bio2X programme is part of Fortum’s strategy to build options for significant new businesses that improve resource efficiency and provide smart solutions. It aims to be the straw refiner with superior material efficiency and a leading supplier of responsible textile fibres. Bio2X focuses on an efficient use of the cellulose, hemicellulose and lignin fractions in order to replace fossil or otherwise detrimental raw materials in numerous end-use applications.

• Fiber prices and demand under pressure due to COVID-19 crisis
• Measures to maintain operations and to protect employees, customers and suppliers implemented successfully
• Hygiene competence center established to produce personal protective equipment in the fight against COVID-19 pandemic
• Strategic investment projects in Brazil and Thailand progressing according to plan
• Management Board proposes not to distribute a dividend for 2019 – AGM rescheduled for June 18, 2020

In a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis, the Lenzing Group held its ground well in the first quarter of 2020. Thanks to a diversified business model and its global footprint on the one hand, and the disciplined implementation of the sCore TEN corporate strategy on the other, the effect on the revenue and earnings development was partially offset.

In the first quarter of 2020, revenue declined by 16.7 percent in comparison with the prior-year quarter and amounted to EUR 466.3 mn. The main reason was the development of prices for standard viscose (due to significant overcapacity in the market) and other standard fibers. The impact of the COVID-19 crisis further increased pressure on prices and volumes. The prices for standard viscose dropped to a new all-time low of 9,150 RMB/ton by March 31 – up to 33 percent lower than in the prior-year quarter. The comparatively positive development of the specialty fiber business and slightly higher demand for fibers in the medical and hygiene segments partially offset the decline in revenue. The share of specialty fibers increased from 47.3 percent in the first quarter of the previous year to 60.9 percent. The earnings development reflects the decline in revenue: EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 24.3 percent to EUR 69.6 mn. The EBITDA margin declined from 16.4 percent to 14.9 percent. Net profit for the period was down 58.6 percent to EUR 17.7 mn. Earnings per share amounted to EUR 0.84 compared with EUR 1.65 in the first quarter of the previous year.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement, urging the government to institute Buy American policy changes to help bolster U.S. manufacturers producing personal protective equipment (PPE) for frontline workers battling the COVID-19 pandemic.

“If the government is sincere about reconstituting a U.S. production chain for medical personal protective equipment (PPE) to resolve the drastic shortages we are experiencing during the current pandemic, it is going to have to make key policy changes to help incentivize domestic production. A strong Buy American mandate for these vital healthcare materials needs to be instituted for all federal agencies, coupled with other reasonable production incentives, to help ensure a strong U.S.  manufacturing base for these essential products.

Our government already has an existing example of such a mandate that serves as an excellent model. The U.S. Department of Defense operates under a fiber-to-finished product Buy American rule for military textiles. This rule ensures that the vital textile materials our U.S. warfighters depend upon, come from a secure domestic production chain that cannot be severed during a military emergency by offshore entities.

There is a bipartisan call for action as members of Congress on both sides of the aisle have begun to acknowledge the need for these types of reasonable and essential policy changes.

Anything short of fully instituting domestic purchase requirements through Executive Order and other legislative initiatives will ensure that PPE production through U.S. supply chains that have been created overnight don’t evaporate as soon as this crisis is over.  

In the midst of the crisis, our failure to confront this challenge will allow for a repeat of the sins of the past that allowed sourcing agents to offshore the entire production of medical PPE in search of lucrative profits. While chasing the lowest cost import may have seemed cost effective at the time, these past few months have demonstrated that we paid a deadly price through this approach by jeopardizing the very lives of frontline medical personnel that are fighting the pandemic.   

This is a national security issue. It’s also a vital healthcare issue and it is decision time for U.S. policymakers. If our country is to be prepared for future deadly pandemics such as the one it is now facing, reasonable policy changes need to be implemented to ensure that we strengthen our domestic supply chain to address America’s security, safety and healthcare requirements.”

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

Materials for in excess of one million protective masks
Within the context of supporting the critical infrastructure in Germany, Oerlikon Nonwoven immediately began converting its laboratory systems in Neumünster to manufacture nonwovens at the end of March. With this, only small local businesses and companies were initially supported in the manufacture of oronasal masks.
With the laboratory system at the R&D Center material for more than one million protective masks a month can be manufactured.

The laboratory has meanwhile run out of raw materials and new orders for replacement materials had to be placed before Easter – with current delivery times of approx. 3 weeks. This will allow production to be resumed, and even considerably expanded, in May.
The laboratory system is now once again being deployed to produce nonwovens that will be used to make more than million face masks / oronasal masks a month. “We will not be manufacturing the masks ourselves. We have meanwhile found both corresponding partner companies and also private individuals demanding nonwovens”, adds Andreas Frisch, commenting on the developments.

Boom in orders
Furthermore, Oerlikon Nonwoven has also fired up the production of the machines and systems used for its meltblown technology. The demand from Germany, Europe and the rest of the world has quickly
secured the company a high in orders..
We will be commissioning the first meltblown system at the site of a leading Western European nonwovens producers in the second quarter of 2020. The capacities for respiratory masks available in Europe to date are predominantly manufactured on Oerlikon
Nonwoven systems.