From the Sector

adidas is adjusting its outlook for the financial year 2022. While second quarter results were somewhat ahead of expectations reflecting continued strong momentum in Western markets and a return to growth in Asia-Pacific, the company has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter. Previously, the company had assumed that in absence of any major lockdowns as of Q3, currency-neutral revenues in the region would be flat during the second half of the year versus the prior year level. However, given the continued widespread covid-19-related restrictions, adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.

As a result, adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% – 13% range). Because of the less favorable market mix due to lower-than-expected revenues in Greater China as well as the impact from initiatives to clear excess inventories in this market until the end of the year, the company’s gross margin is now expected to be around 49.0% in 2022 (previously: around 50.7%). Consequently, the company’s operating margin is now forecasted to be around 7.0% in 2022 (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion – € 1.9 billion range).

So far, the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any other market. Nevertheless, the adjusted guidance also accounts for a potential slowdown of consumer spending in these markets during the second half of the year as a result of the more challenging macroeconomic conditions.

Despite these headwinds, adidas continues to expect double-digit revenue growth during the second half of the year for the total company. In addition to easier prior year comparables, the acceleration will be driven by adidas’ strong product pipeline, the restocking opportunity with its wholesale customers given unconstrained supply as well as the support from major sporting events.

Based on preliminary numbers, adidas’ currency-neutral revenues grew 4% during the second quarter. This increase was driven by strong double-digit growth in North America and Latin America, high-single-digit growth in EMEA (also double-digit growth excluding negative Russia/CIS impact) as well as a return to growth in Asia-Pacific. In euro terms, sales increased 10% to € 5.596 billion. The company’s gross margin declined 1.5 percentage points to a level of 50.3% and operating margin reached 7.0% during the second quarter (2021: 10.7%). Net income from continuing operations was € 360 million in Q2 (2021: € 387 million) supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision.

INDA, the Association of the Nonwoven Fabrics Industry, announces that IDEA® – an event for the Nonwovens & Engineered Fabrics Industry – will be held every two years instead of three starting in 2024.

The upcoming dates for IDEA® under the new schedule will be March 28-31, 2022, as currently scheduled, and then April 23-25, 2024. Both will be held as live, in-person events at the Miami Beach Convention Center in Florida.

“INDA has three key reasons for making this change in event frequency,” said Dave Rousse, INDA President.  “First, the nonwovens industry has been a vibrant, innovative sector with new products, processes and materials every year, so providing an opportunity to showcase more frequently these new developments better serves the industry. Second, one of the major nonwoven events in Asia has declared they will run each and every year, impacting the past three-year cycle of major shows in the nonwovens industry. Third, coming out of the Covid pandemic, market research predicts for the near future that regional events are expected to be better supported than global events.”

The last time IDEA® was held in 2019 it broke all attendance records. INDA expects the 2022 edition March 28-31 to attract several thousand senior-level buyers and attendees from over 60 countries and several hundred exhibitors from a myriad of industry sectors, including absorbent hygiene, wipes, filtration, medical and surgical products, personal protective equipment, home and office furnishings, transportation, geosynthetics and building construction.

The ITA Group, consisting of the Institute for Textile Technology of RWTH Aachen University (ITA), their research and development service provider ITA Technologietransfer GmbH (ITA GmbH) are proud to announce their new strategic positioning: in order to better respond to actual industrial demands and needs, ITA decided to install a partnership model as of January, 25 2022.

The ITA Group comprises the ITA of RWTH Aachen University, a leading research and qualification research institute with 400 employees in the areas of fibre-based high-performance materials, textile semi-finished products and their manufacturing processes and the ITA Technologietransfer GmbH, the partner of the industry in R&D, providing technology and knowledge transfer, as well as offering comprehensive solutions along the entire textile value chain.

Prof. Dr. Thomas Gries, Director of ITA, explains the new partnership model:” The impact of the Covid-19-crisis has shown once more the importance of long-term trustworthy business relationships. Therefore, we are establishing our new partnership model where we will even more closely cooperate with our actual and future industrial partners, providing them with the latest technologies and innovations from R&D side. We will initiate networking and workgroup meetings, offer access to ITA´s large machine parks and labs, carry out joint partner projects and commonly organized publicly-funded projects as well as training for partner´s employees and HR opportunities.”

Dr. Christoph Greb, Scientific Director of ITA: “We are very happy to initiate this new partnership model where science, research and industry are working shoulder to shoulder in pre-competitive projects on our future projects along the entire value-chain from the fibre to the final component in order to close a missing gap and form innovative paths forward in various industrial fields.”

During an initial session of three Innovation days in hybrid format, ITA successfully introduced in September 2021 the first industrial partner projects which will be carried out, among them “Recycling of composite battery cases”, “Recycling of composite pressure vessels”, “Natural Fibre Composites”, “Textile Structures with focus on biaxial Warp-Knitted Structures”, “Factory of the Future”, “Tapes and Hybrid Yarns”.

The next opportunity to meet with ITA is at JEC DACH in Frankfurt (November 23 and 24 2021).

• A paper published in ACS Applied Materials Interfaces details effectiveness, describes protocol for future testing

An international team of scientists and engineers from the University of Cambridge, the Icahn School of Medicine at Mount Sinai, ResInnova Labs and Ascend Performance Materials has found that a nylon fabric embedded with zinc ions successfully inactivated 99% of the viruses that cause COVID-19 and the common flu.

Face masks, protective clothing and filters are used to slow the spread of viruses. But poor-quality masks can harbor active viruses from infected wearers, posing a transmission risk.

“A major challenge is absorption and inactivation,” said Vikram Gopal, Ph.D., co-senior author and chief technology officer at Ascend Performance Materials. “Respiratory viral illnesses, such as COVID-19, and the flu, are transmitted through droplets and aerosols. Polypropylene, the material in commonly used disposable masks, is a hydrophobic plastic and does not absorb moisture. Instead, the viruses can sit on the surface of the mask, posing a transmission risk when the mask is handled.”

Cotton also has problems, Dr. Gopal said. “Cotton effectively absorbs moisture, but it doesn’t inactivate the virus – again, posing a transmission risk,” he said. In the paper published in ACS Applied Materials Interfaces, the researchers described how a fabric made of nylon 6,6 embedded with active zinc ions absorbed virus-containing moisture droplets and effectively inactivated the particles. The fabric produced a 2-log, or 99%, reduction of virus particles in one hour.

The research team also was able to demonstrate that nylon with active zinc ions remains stable over time, keeping its virus-inactivating properties after 50 washes. “The study shows how nylon textile fabric with zinc outperforms the widely used cotton and polypropylene materials at virus absorption and inactivation,” Dr. Gopal said. The findings have significant implications for future development of PPE, Dr. Gopal said. “Pathogen-free PPE does more than just cut down the risk of transmitting the virus,” Gopal said. “By making PPE washable and reusable, you reduce the need for single-use products, keeping hundreds of millions of masks out of landfills.”

Fibre Extrusion Technology of Leeds, UK has delivered nine meltspinning systems to clients in the biomedical sector since the onset of the Covid-19 pandemic, with a similar number currently on order for 2021/22. This way FET could confirm the position as an acknowledged world leader in meltspinning equipment for the production of precursor materials used in medical devices and as a default supplier for absorbable suture production systems, with orders virtually doubling year on year.

Recent installations include a multi-functional system that can produce both multifilament and monofilament pre-cursor fibres, but nonwoven systems have been particularly prominent, driven by the burgeoning demand for FFP3 masks, gowns and other medical products required during the pandemic. These have been sold to medical device manufacturing companies across the globe, including the Far East, USA and Europe. Research organisations have also invested in FET systems for biomedical applications, the most recent being the University of Leeds in a laboratory scale Spunbond system.

The FET in-house Process Development Laboratory and ongoing collaboration with biomaterial polymer suppliers has helped to optimise the biomedical melt spinning technology. The Laboratory is at the disposal of customers for all aspects of confidential testing and evaluation. To further increase this competitive edge, FET will be opening a new Process Development Laboratory and Visitor Centre in early 2022.

• Ramping Up Production of American-Made Polyester Tipped Swabs

The Biden Administration has awarded a contract for $6.5 million to U.S. Cotton LLC, the largest manufacturer of cotton swabs in the United States, to increase domestic production capability for polyester tipped swabs for home testing kits and mass testing applications to fight the COVID-19 pandemic.  Since the beginning of the pandemic, U.S. Cotton has retooled operations to produce over 400 million COVID testing kit swabs.

The Department of Defense (DOD), in coordination with the Department of Health and Human Services (HHS), announced the award today as part of the administration’s broader effort to increase domestic production capability for essential medical supplies.

U.S. Cotton, based in Cleveland, Ohio, said the company will increase its production capacity from 92 million polyester swab tips per month to approximately 371 million polyester swab tips per month by May 2022 to support domestic COVID-19 testing. The DOD contract award was funded through the American Rescue Plan Act (ARPA) to support the domestic industry base expansion for critical medical resources.

John Nims, President of U.S. Cotton said, “We are proud to be involved in a national effort to help deploy these testing kit swabs for the American people. These swabs are designed to make it easier for people at home to self-administer coronavirus tests and will also be used for mass testing applications, which is critically important. We greatly appreciate the collaboration with DOD and HHS to ramp up essential capacity of polyester-based synthetic swabs that will help in the fight against the pandemic.

“We continue to step up to meet our nation’s critical need for American-made coronavirus testing kit swabs on a massive scale. It is an honor to work with our government to help fight this pandemic and use our innovative technologies based here in the United States to fill a national and global demand for testing kits. I especially want to thank Senator Brown and Senator Portman for all their incredible support to help us retool and expand our operations in Cleveland. We can’t thank them enough for their tireless work and also want to recognize their hard working staff. As the Delta variant surges across the country, this timely investment will help in the fight against COVID by adding this much-needed, long-term surge capacity.”

Kim Glas, President and CEO of NCTO, said, “We want to sincerely thank President Biden, the Department of Defense, and the Department of Health and Human Services for leading this critical industrial expansion effort. We appreciate the administration’s commitment to expand the U.S. industrial base for these essential products.  We have a once-in-a-generation opportunity to onshore these critical supply chains long-term and we look forward to working with the administration and Congress to advance long-term solutions.”

AFFIX Labs’ durable semi-permanent surface coating Si-Quat, that is proven to kill 99.9% of bacteria and viruses, including SARS-COV-2, will be helping to make public transport safer as people around the world begin getting back onto buses and trains.

Si-Quat helps to prevent cross contamination with a durable layer of polymerized active ingredient that binds to walls, handles, furniture, and other key touch points, staying in place for up to 12 months and killing 99.9% of viruses and bacteria that come into contact with the treated surface. The coating has been tested and certified to be effective against bacteria, viruses, and fungi, and has passed the rigorous EN45545-2 HL3 flammability norm for trains and REG118.3 for busses.

Kiel has been manufacturing seating for public transport globally for more than 75 years and will be offering Si-Quat to clients as a new solution to protect travellers on their transport networks. With Si-Quat already registered on several continents a quick roll out is truly achievable.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued a statement today welcoming President Biden’s action plan and COVID-19 response, accompanied by a series of executive orders, including an order signed today to strengthen U.S. supply chains by directing federal agencies to use the Defense Production Act (DPA) to address shortages of personal protective equipment (PPE) and related vaccine supplies.

“We are closely reviewing President Biden’s national strategic plan to confront the pandemic and welcome the executive order signed today to strengthen our supply chains by directing all federal agencies to use the Defense Production Act to address shortages of personal protective equipment, vaccine supplies and essential products. These are important steps that will help ramp up critical manufacturing of these essential PPE products and other critically needed supplies like tests and vaccines.”

American manufacturers have been at the forefront of the effort to build a domestic PPE supply chain since the onset of the COVID-19 pandemic. The U.S. textile industry retooled production and operations virtually overnight, producing millions of face masks, isolation gowns, testing swabs and other critical medical textiles.

The industry is dedicated to making significant investments in automated equipment for PPE, but the industry needs long-term, multiyear contracts to help realize that investment.

The deployment of DPA is one of the critical tools that will help incentivize investment in equipment, propel the hiring of U.S. workers and expand these critical production chains.

Since its inception, the DPA has been utilized by the Department of Defense to make critical investments in domestic textile manufacturing infrastructure and capacity, creating private-public partnerships through the government’s capital investments under the DPA and guaranteeing purchases through long-term contracts.  

NCTO applaud President Biden’s action and anticipate further steps including a reported order that will seek to strengthen government procurement of U.S. products in the coming days. NCTO appreciate President Biden outlining the “National Strategy for the COVID-19 Response and Pandemic Preparedness” a series of actions and steps the administration will undertake to deploy and manufacture the vaccine and other essential products.

The coronavirus pandemic and its massive impact on the automotive industry led to an un-precedented market slump in the first half of 2020 and a corresponding revenue decline at Autoneum. Revenue in local currencies fell by –32.7% compared to the prior-year period, and in Swiss francs by –36.8% to CHF 730.6 million. The turnaround program for the North American sites made further progress in the first six months and is showing the targeted results. However, they were clearly overcompensated by the massive impact of the corona-virus crisis, which led to a negative net result of CHF –54.9 million despite comprehensive cost flexibilization measures.

Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production completely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

 Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production com-pletely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

Autoneum promptly responded to the pandemic-related market slump by adopting extensive cost-cutting measures in all regions. These include the reduction of employee costs by, among other things, adjusting time accounts, introducing short-time work at eligible locations and temporary layoffs as well as headcount reduction, mainly among temporary workers. In addition, operating expenditures were limited to the absolutely necessary. The investment volume for 2020, already reduced from previous years, was downsized even further. Autoneum continues to benefit in this regard from the high level of investments undertaken in recent years.

 Although the coronavirus crisis and the measures taken to contain it dominated Autoneum’s course of business in the first half of 2020, the Company achieved necessary operational and financial im-provements during this period. The comprehensive turnaround program for the North American sites made further progress and is on track. Efficiency improvements already achieved there had a posi-tive effect on the figures of the first half-year, but were significantly overcompensated by the substan-tial impact of the COVID-19 crisis. Savings and cost flexibilization measures taken immediately and implemented worldwide in view of the revenue loss could not offset the ongoing, capacity-related fixed costs. This led at the Group level to a negative EBIT of CHF –31.8 million (prior-year period: CHF 16.4 million), which equates to an EBIT margin of –4.4% (prior-year period: 1.4%). The net result decreased because of the severe revenue shortfall to CHF –54.9 million (prior-year period: CHF –6.0 million).

Outlook
For 2020 Autoneum expects revenue to develop at market level. Although customers’ production volumes should increase again in the second half of 2020 compared with the first semester, latest fore-casts indicate that they will remain clearly below the level of the second half of 2019. Immediately implemented and ongoing cost reduction measures as well as further operational optimizations also within the turnaround program in North America will lead to improvements in the second half of the year. Due to the current uncertainties, a reliable statement on the net result for the full year 2020 thus cannot be made. With regard to the mid-term targets, a recovery of the profitability level is expected, but it will largely depend on the market development.

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.