From the Sector

• Currency-neutral revenues flat versus the prior-year level
• Top-line development reflects improved sell-out trends and conservative sell-in strategy
• Gross margin up 0.6pp to 50.9%; strong improvement compared to Q1 reflecting better sell-through and less discounting
• Operating profit of € 176 million includes extraordinary expenses of around € 160 million related to one-off costs, donations and accruals for future donations
• Inventory position improves substantially versus Q1 level to € 5.5 billion; now up only 1% year-over-year

In the second quarter of 2023, currency-neutral revenues were flat versus the prior-year level. The top-line development continued to be impacted by the company’s conservative sell-in approach in order to reduce high inventory levels, particularly in North America and Greater China. At the same time, adidas second quarter revenues benefited from the first sale of some of its Yeezy inventory. The initial product drop in June generated revenues of around € 400 million in Q2, which is largely in line with the Yeezy sales generated in the prior year’s quarter.

Footwear revenues grew 1% during the quarter, reflecting strong growth in football, basketball, tennis and US sports. Apparel sales declined 3% in the second quarter. As the apparel market continues to be particularly overstocked, the company continued its conservative sell-in strategy to improve sell-through and margins in the medium term. Accessories grew 8% during the quarter driven by growth in football.  

Lifestyle revenues were down during the quarter despite extraordinary demand for the company’s Samba, Gazelle and Campus franchises. While adidas slowly started to scale its offering for these product families during the second quarter, the total volume still only represents a small portion of the company’s overall business. Sales in the adidas Performance categories continued to show positive momentum. This reflects strong demand for new product introductions such as the latest iterations of its Predator, X and Copa football boots, as well as jerseys for both the FIFA Women’s World Cup 2023 and the company’s unique portfolio of football teams ahead of the start of the European club season. In addition, the Adizero product family in running continued to gain a lot of attention around marathon races across the world, translating into higher demand. At the same time, the brand’s Barricade tennis franchise grew strongly, leveraging the excitement around major tournaments.

In euro terms, the company’s revenues declined 5% to € 5.343 billion in the second quarter (2022: € 5.596 billion).

Stronger sell-out trends and conservative sell-in
As a result of the company’s initiatives to reduce high inventory levels, currency-neutral sales in wholesale declined 10% despite double-digit growth in Greater China and Latin America. At the same time, direct-to-consumer (DTC) revenues grew 16% versus the prior year. This development was driven by strong growth in both the company’s e-commerce business (+14%) as well as own retail stores (+19%), reflecting continued strong sell-out trends across most regions. The outperformance of the company’s DTC channel versus the wholesale business was also related to the first sale of the Yeezy inventory, which was done exclusively through adidas’ own e-commerce channel.

Double-digit growth in Greater China and Latin America
Currency-neutral sales in North America declined 16% during the quarter. The region is particularly affected by elevated inventory levels in the market and – in response to this – the company’s significantly reduced sell-in. Revenues in Greater China grew 16% in Q2, reflecting double-digit sell-out growth in both wholesale and own retail. Sales in EMEA were down slightly (-1%) despite double-digit DTC growth. While the company’s initiatives to reduce inventory levels and discounting weighed on the overall top-line development in the region, adidas recorded significantly improving full-price trends during the quarter. Revenues in Asia-Pacific increased 7% during the quarter, driven by strong double-digit growth in DTC. Latin America continued to increase at a double-digit rate (+30%), reflecting strong growth in both wholesale and DTC.

Gross margin improves to 50.9%
The company’s second quarter gross margin increased 0.6 percentage points to 50.9% (2022: 50.3%). This improvement was mainly driven by price increases the company has implemented as well as by an improved channel mix. At the same time, higher supply chain costs and unfavorable currency movements continued to strongly weigh on the gross margin development. While still adversely impacting the company’s gross margin in the quarter, discounting levels significantly improved compared to the first quarter of the year.  

Operating profit of € 176 million, resulting in an operating margin of 3.3%
Other operating expenses were up 3% to € 2.582 billion (2022: € 2.501 billion). As a percentage of sales, other operating expenses increased 3.6 percentage points to 48.3% (2022: 44.7%). Marketing and point-of-sale expenses decreased 7% to € 617 million (2022: € 663 million). As a percentage of sales, marketing and point-of-sale expenses slightly decreased by 0.3 percentage points to 11.5% (2022: 11.8%). Operating overhead expenses were up 7% to € 1.965 billion (2022: € 1.838 billion), reflecting higher logistics expenses. In addition, the company recorded one-off costs of around € 50 million related to the strategic review the company is currently conducting as well as donations and accruals for further donations in an amount of around € 110 million. As a percentage of sales, operating overhead expenses increased 3.9 percentage points to 36.8% (2022: 32.8%). The company’s operating profit amounted to € 176 million (2022: € 392 million) in the quarter. This amount includes the extraordinary expenses of in total around € 160 million reflecting the one-off costs related to the strategic review as well as the donations and accruals for further donations. The sale of the Yeezy product positively impacted adidas’ operating profit by an incremental amount of around € 150 million in Q2. The operating margin reached 3.3% in the quarter (2022: 7.0%).

Net income from continuing operations of € 96 million
After taxes, the company’s net income from continuing operations amounted to € 96 million (2022: € 360 million), while basic EPS from continuing operations decreased to € 0.48 (2022: € 1.88).

Outlook

adidas expects revenues to decline at a mid-single-digit rate
On July 24, adidas had adjusted its full year financial guidance to reflect the positive impact of the first sale of some of its Yeezy inventory and a slightly better-than-expected development of the adidas business in the first half of the year. At the same time, macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in North America and Europe as well as uncertainty around the recovery in Greater China continue to exist. In addition, the company’s revenue development will continue to be impacted by the initiatives to significantly reduce high inventory levels. As a result, adidas now expects currency-neutral revenues to decline at a mid-single-digit rate in 2023 (previously: decline at a high-single-digit rate).

Underlying operating profit anticipated to be around the break-even level
The company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is still anticipated to be around the break-even level. Including the positive impact from the first Yeezy drop of around € 150 million, the potential write-off of the remaining Yeezy inventory of now € 400 million (previously: € 500 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), the company now expects to report an operating loss of € 450 million in 2023 (previously: loss of € 700 million).

On August 2, the company launched a second drop of Yeezy inventory. Throughout the month of August, adidas is making a range of existing products available through both its own e-commerce channel as well as the digital platforms of selected wholesale partners. If successful, this second drop would further improve the company’s results. However, as the results of this drop are yet unknown, it is not accounted for in the company’s current top- and bottom-line outlook for 2023.

Finishing machinery specialist Monforts has secured a number of major orders from textile manufacturers in Central and South America recently, and was pleased to welcome a high number of visitors from the region to its stand at ITMA 2023 in Milan from June 8-14.

Among new orders are those for three Montex stenters delivered to the AustralTex Group in Argentina and a further Montex range to denim manufacturer CIT in Brazil. Guatemala’s Global Textiles placed an order for its second Montex stenter, while Mexico’s Zentrix ordered its third and Avante, also in Mexico, has opted for its sixth.

Elsewhere, orders have also been placed for the delivery of three new Montex stenters to one of Pakistan’s major corporations, as well as a new Thermex dyeing range to nonwovens manaufacturer Orsa in Italy. Further orders – both for new machines and retrofit modules – are now anticipated following ITMA 2023, which attracted over 111,000 visitors to Milan.

“Visitor footfall at ITMA 2023 was well beyond the company’s expectations, and we were especially pleased at the constant number of visitors from South American companies, as well as from Asia and Europe,” said Monforts Marketing Manager Nicole Croonenbroek. “We were able to provide them with detailed information about our portfolio of machines and technologies digitally and fielded an unprecedented number of serious enquiries, many of which promise to turn into new business.”

Monforts Montex stenters for processes such as drying, stretching, heat-setting and coating, she added, are already the industry standard for the fabric finishing industry, providing a number of advantages in terms of production throughput and especially in energy efficiency and resource savings. Other key technologies in the Monforts portfolio include relaxation dryers, Thermex dyeing ranges and Monfortex compressive shrinking ranges.

Montex®Coat
“We were also very pleased with the interest in the Montex®Coat, the latest addition to our range of technologies, which we displayed in Milan,” Croonenbroek said.

The Montex®Coat can serve a very diverse number of markets and enables full PVC coatings, pigment dyeing or minimal application surface and low penetration treatments, as well as solvent coatings. Knife coating, roller coating or screen printing can also all be accommodated with this system. It provides the ultimate in flexibility and the ability to switch quickly from one fabric run to the next, without compromising on the economical use of energy or raw materials.

Many refinements have been made to the Montex®Coat in the past few years, resulting in higher coating accuracy and the resulting quality of the treated fabrics. A number of advanced new improvements were introduced in Milan, including automatic edge limiters for immediately adapting to new coating widths and a new and simplified hand-held control device. These save considerable time in setting up the machine and ensuring consistent production.

The Montex®Coat unit displayed in Milan was sold to Vietnamese company Thai Tuan during the show.

With total sales of EUR 1,543 million, generated by over 30 production and sales units in Europe, Asia, and America, Radici Group closed its 2022 financial year with slight growth over 2021. EBITDA reached EUR 157 million in 2022, and net income for the year was EUR 80 million.

“We are moderately pleased with the 2022 figures,” Angelo Radici, president of RadiciGroup, commented. “Despite an unpredictable and challenging year, we were able to achieve positive results. Although the rise in energy costs began to be felt in January, we managed to maintain our position in the first three months of the year due to a significant increase in demand. From the second quarter onwards, the European market experienced a significant slowdown due to the outbreak of war in Ukraine, which exacerbated the already soaring costs of energy and raw materials. The situation was completely out of hand and made worse by the fact that some raw materials were not available. This created significant challenges for us, especially in the chemical sector. We even had to stop operations at our Novara plant in the latter part of the year. Products similar to ours in the nylon supply chain from China and the US were being sold at a price lower than our variable cost.”

The president continues: “At Group level, our internationalisation strategy helped us mitigate geopolitical risks in various countries. As a result, we were able to offset the challenges in the European chemicals and textile markets by leveraging our global presence in High Performance Polymers, where our numbers have held strong. As we began 2023, we regained our footing. However, the global economic and industrial scenario for the rest of the year remains highly uncertain, and forecasts are notably cautious.”

Even in these difficult times, the Group has continued to invest. In 2022, the High Performance Polymers Business Area completed the acquisition in India of the engineering plastics branch of Ester Industries Ltd, a listed company. Additionally, it began installing two new production lines in Mexico and Brazil, and confirmed plans to install a new extrusion line at the Villa d’Ogna production site in the province of Bergamo. These choices align with the Group’s goal of enhancing its worldwide presence and boosting competitiveness in high-potential growth markets. In a year where energy and raw material costs were certainly problematic, operating in geographically diverse markets and with varied applications proved to be an important tool in addressing the challenges. In this vein, a new production site spanning over 36,000 square metres has recently been inaugurated in China. The move is aimed at doubling the production capacity in line with the market’s growth expectations.

Extending the time horizon to 2018-2022, the Group has invested over EUR 277 million to enhance the competitiveness of its companies, implement Best Available Techniques, improve energy efficiency, reduce emissions, and conduct research and development activities aimed at introducing sustainable processes and solutions. These efforts include the research and development activities of Radici InNova, which are heavily focused on the circular economy.

Lectra’s Annual Shareholders’ Meeting held on April 28 appointed two new Directors, Karine Calvet and Pierre-Yves Roussel for a four-year term. They both will become members of the Strategic Committee, replacing Bernard Jourdan, Lead Director, and Anne Binder. Karine Calvet also becomes a member of the Corporate Social Responsibility (CSR) Committee.

With its new strategic roadmap for 2023-2025, the Group aims to use its expansion – mainly due to the acquisition of Gerber in June 2021 – to accelerate its growth, significantly increase the share of SaaS in its sales, and seize opportunities for external growth. Supported by the commitment of its staff and recognized by its customers, Lectra will also be at the forefront of a more sustainable future.

Karine Calvet is Vice-President EMEA responsible for Partners at AVEVA, a subsidiary of Schneider Electric. She began her career at CGI in 1993 and has spent most of it in IT: sixteen years in services companies, seven years in telecommunications, and six years in software. She has had leadership roles in telecommunications environments for leading global companies (CGI, Capgemini, Alcatel-Lucent, Verizon, Microsoft and currently Schneider-Aveva), focusing on digital transformation. Karine Calvet served as Head of Industry at Capgemini, then managed worldwide teams at Alcatel-Lucent as Vice-President, Eastern Europe then at Verizon as Managing Director. Her time at Microsoft strengthened her software expertise, her direct and indirect channels skills, and her experience in IT services. In the last two years, as Vice-President, Southern Europe then Vice-President, Partners and Alliances at Schneider-Aveva, Karine Calvet has worked closely with industrial companies to help them meet the challenges of operational efficiency, safety, cost management, sustainability and decarbonization by taking advantage of digitalization.

Pierre-Yves Roussel has been CEO of leading US fashion label Tory Burch since January 2019. He began his career in investment banking with HSBC in Brussels, then at Morgan Stanley in London. In 1990, he joined management consulting firm McKinsey & Company in France, where he led numerous consultancy assignments in the fashion, luxury, distribution and media sectors in Europe and Asia. In 1998, he was elected Partner then, in 2004, Global Senior Partner (Director). In 2004, he joined the LVMH Group Executive Committee as Executive Vice-President, Strategy and Operations, reporting directly to Bernard Arnault. In 2006, he was appointed Chairman and CEO of LVMH Fashion Group, one of the LVMH Group’s five branches of operational activity. From 2006 to 2018, he was Chairman of the Board of the brands Céline, Givenchy, Loewe, Kenzo, Pucci, Rossimoda, Marc Jacobs, Donna Karan, Berluti, JW Anderson and Nicolas Kirkwood. He has also been a member on several prestigious fashion juries including Andam, CFDA Fashion Incubator, and the LVMH Fashion Prize. He was a member of the management committee of the Chambre Syndicale de la Mode et de la Couture from 2010 to 2018. In 2018, he left the LVMH Group to take up the post of CEO – based in New York – of the company Tory Burch. Founded by his wife in 2004, the private family-run company has more than 350 stores worldwide, 13 retail websites, and nearly 5,000 employees.

Freudenberg Performance Materials Apparel (Freudenberg) launches its biodegradable fusible cotton shirt interlinings range 46xx. With this innovation, the world’s leading specialist in woven, knitted, weft and nonwoven interlinings reduces its impact on the environment and supports customers in achieving their own sustainability objectives. In Asia, the series is marketed under the name 42xx series.

Approved biodegradability and non-toxicity by Hohenstein Laboratories
The new Freudenberg fusible interlinings for shirts and blouses have been developed in such a way that they are harmless to people and the environment at the end of their life cycle. Germany’s independent Hohenstein Laboratories performed biodegradation tests on the 46xx series, based on the Hohenstein method which draws on DIN EN ISO 11721-2:2003 and EN ISO 846, and approved it as biodegradable and ecotoxicologically harmless. The tests by Hohenstein showed no negative effects on either the germination of garden cress nor on earthworms in the acute toxicity test.

Energy-saving interlining
The new biodegradable shirt interlinings also show great potential for energy saving, as the fusing can be performed at a low temperature. Concretely, this means that the resulting temperature between the upper fabric and the shirt interlining during fusing is only 127°C which is significantly lower than the commonly used temperature of 143°C. Certified to OEKO-TEX® STANDARD 100 Class II for successfully testing for no harmful substances, the shirt interlinings are washable at up to 40°C and resistant to dry cleaning. In addition, it has also passed all ecological-toxicological tests and is a perfect end-of-life cycle solution.

Product details and availability
The products in range 46xx are available in Europe in the color white and the following weight classes: 4605 (90g/m2), 4616 (150g/m2) and 4618 (55g/m2). The adhesive of the interlinings consists of a 100% degradable bio-polymer. The shirt interlinings are ideal for reinforcing shirt and blouse collars, cuffs and plackets used in fashion, leisure and business clothing. The biodegradable, non-toxic interlinings are particularly important for labels with an ecologically sustainable claim.

Indorama Ventures Public Company Limited (IVL) reported a record FY22 financial performance from the company’s global manufacturing footprint serving end-consumers’ resilient need for daily necessities. The unusually high level of customer destocking that weighed on the fourth quarter result is expected to have leveled out and business should return to normal operating conditions, with China’s reopening to further spur demand.

Full-year Core EBITDA climbed 31% YoY to $2.3 billion as revenue rose 28% to a record $18.8 billion. The company recorded strong cash flows of $2.2 billion, up 111% YoY. Indorama Ventures’ geographically diversified, integrated platform, backed by management’s agility, withstood unprecedented global events to generate earnings through the business cycle. During the year, the company continued to focus on its growth plan, successfully integrating its strategic surfactants business in Latin America and Vietnamese packaging acquisition. A dedicated senior team is working tirelessly and is committed to the company’s ‘Vision 2030’ sustainability goals including recycling technologies and introducing biomass feedstock to the company’s product portfolio. The ongoing ‘Project Olympus’ cost transformation program delivered an annual run rate of $449 million in efficiencies.

The annual result was impacted by an unusually challenging final quarter as fears of a recession and reduced transit times led to widespread destocking by customers. 4Q22 Core EBITDA declined 43% YoY to $264 million on a 1% drop in revenue to $3.9 billion. The pandemic lockdown in China also continued into the final quarter, reducing factory demand across Indorama Ventures’ portfolio and resulting in narrower margins from lower prices and higher costs. Higher energy and utility costs impacted European operations as the war in Ukraine continued into the winter.

To improve competitiveness and build resilience, Indorama Ventures rationalized underperforming assets in the Fibers business in Europe and a PTA site in Asia, resulting in a $7 million cash impairment in 4Q22 and a $253 million non-cash impact. As a result, the company looks forward to a $38 million uplift in EBITDA in 2023, reaching up to $65 million by 2025.

Archroma announced the closing of the acquisition of the Textile Effects business from Huntsman Corporation (“Huntsman Textile Effects”).

When the Huntsman Textile Effects acquisition was first announced in August 2022, Archroma Group Chief Executive Officer (CEO) Heike van de Kerkhof called the transaction a “merger of equals”. Indeed, the global business of Huntsman Textile Effects comprises approximately 2,300 employees in 33 countries and 10 production sites globally which, when combined with Archroma, means the company will have more than 5,000 employees in total, in 42 countries and 35 production sites.

In addition to the closing of the Textile Effects acquisition, Archroma announced that it has updated its overall business into two operating divisions for growth, each focused on a separate end market.

The Textile Effects business acquired from Huntsman will be integrated with the Brand & Performance Textile Specialties business of Archroma into one new division named Archroma Textile Effects. The new division will be led by Rohit Aggarwal, former President of Huntsman Textile Effects, who is appointed as Divisional President & CEO of the Archroma Textile Effects division, as well as President Asia.

The Packaging & Paper Specialties and Coatings, Adhesives & Sealants businesses of Archroma have been recently combined into one new division named Archroma Paper, Packaging & Coatings, under the leadership of Sameer Singla, Divisional President & CEO of the Archroma Paper, Packaging & Coatings division, as well as President Americas and Europe, Middle East & Africa.

This new structure will ensure that both divisions obtain the resources and focus needed to continue providing Archroma’s customers and business partners with the superior experience and solutions they have come to expect.

In particular, Archroma is committed to supporting global megatrends and societal shifts such as circular fashion, plastic-to-paper replacement, and water-based paints and coatings, with the innovations and solutions needed to do so.

• Style3D is sole shareholder of Assyst
• Integration of both product lines from 3D design to production
• Assyst remains independent within Style3D

Assyst GmbH is as of now part of Style3D. The German fashion technology market leader and the leading 3D software company are joining forces. For Assyst customers and partners nothing will change.
 
Die Assyst GmbH betreibt ihre Geschäfte weiterhin eigenständig, entwickelt alle ihre Produkte weiter und strebt mit Style3D eine gemeinsame, durchgängige Produktwelt an. Der erste gemeinsame Auftritt des Assyst-Style3D-Teams findet bereits auf der Assyst Experience im Rahmen der Munich Fabric Start (24.-26. Januar 2023) statt.

Assyst will continue to operate its business independently and to develop, sell, and service all its existing products. Style3D and Assyst will start to integrate their products into a universal, seamless product world. The Assyst-Style3D team will make its first joint appearance already at the end of January at the Assyst Experience at Munich Fabric Start (24-26 January 2023).

Both companies are deeply rooted in apparel development and production: Style3D in Asia and Assyst in EMEA. Together, they are planning to create a global product offering for producers and brands that covers the entire apparel value chain from development to production and the various sales touchpoints.

Starting point will be the integration of the flagship products of both companies – Style3D and Assyst.CAD. Style3D is currently the most advanced 3D fashion design software with a high growth rate globally. While Assyst is market leader with its 2D CAD technology in Germany, Austria, Italy and Switzerland and offers a seamless software portfolio from 2D and 3D CAD to production (Automarker) and to all sales touchpoints.

Major driver of the merger is the companies’ complimentary technology offering and the vision to create a seamless digital process from providing digital fabric and accessories up to the realization of products.

The merger also strengthens Assyst's competitive position in the 3D design sector. Style3D, in turn, will benefit from Assyst's expertise in the development, CAD and digital simulation of apparel products and the access to the international market.

Looking ahead to the future, both parties will offer 2D-based & 3D-based one-stop solutions for business clients leveraging on their global tech base and complementary serviceable resource dominance. On January 24-26, the Assyst-Style3D team will meet clients and present its products at the Assyst Experience at Munich Fabric Start.

Automotive carpets are typically multi-layered systems that can be challenging to recycle. By introducing a carpet made of 100% polyester, Autoneum now opens up new opportunities for vehicle manufacturers to meet their sustainability targets. The innovative carpet systems are fully recyclable, thus paving the way for an improved and more sustainable end-of-life recycling of electric vehicles. In addition, the high content of recycled PET as well as the zero waste and less energy-intensive production process further improve the carbon footprint of Autoneum’s new monomaterial needlepunch and tufted carpets.

Autoneum’s fully recyclable carpet systems ensure a closed material loop and are thus proof of the Company’s commitment to improving the sustainability performance of its products and manufacturing processes. The 100% polyester carpets build on the existing lightweight and particularly sustainable Autoneum Pure technologies: the carpet surface, for example, is made of Di-Light or Relive-1, while Hybrid-Acoustics PET is used for the decoupler. Thanks to Autoneum’s innovative alternative backcoating (ABC) process, which uses a thermoplastic adhesive instead of latex, the production of the new monomaterial needlepunch and tufted carpets also requires significantly less energy and no water at all.

Autoneum’s sustainable tufted carpet system made of 100% polyester is already in development for an electric model of a German vehicle manufacturer that will be available in Europe and Asia.

Monforts will take part in a VDMA textile technology trade delegation to Turkmenistan from November 21-26, on behalf of the German Federal Ministry of Economics.

Around 80% of Turkmenistan’s production of textiles and garments is currently exported, with a value of $350 million in 2020. This is now expected to rise to $450 million by 2023.

In addition to expanding in cotton yarns and fabrics, the country is also looking to enter other textile markets, including nonwovens, carpets and absorbent hygiene products, and negotiations are currently underway between the Turkmenistan Ministry of Textile Industry and the Korean Institute of Industrial Technologies to also commence manufacturing synthetic fibres from polymers.

In 2021, a new textile complex was opened by state-owned textile manufacturer Cotam in the city of Kaka, which is aiming to produce 3,650 tons of yarn, 12 million square metres of different types of fabrics and 1.2 million tons of finished products annually, with the creation of 1,300 new jobs.

Monforts has supplied seven complete finishing machine ranges to Turkmenistan company Cotam, as the Central Asian country looks to boost its production of cotton yarns and fabrics via an ambitious textile industry modernisation plan.

Cotam now has two separate manufacturing sites at Babadayhan and Kaka, both of which have now been equipped with Monforts technologies built at the company’s plant in St Stefan in Austria.

Cotam supplies finished fabrics to both the apparel and home textiles markets and at its Babadayhan plant is now operating two Montex stenter lines and a Monfortex sanforizing line. At its new Kaka plant, the company has also installed two Montex stenter lines, as well as a Thermex universal hotflue for continuous dyeing and curing.

“Turkmenistan celebrated 30 years of independence in 2021 and has made a giant leap forward in its progressive development,” said Monforts Managing Director Stefan Flöth. “A textile industry equipped with modern high-tech equipment has been created factories and equipped with the most advanced and high-performance equipment built and put into operation. We are extremely pleased that the Ministry of the Textile Industry of Turkmenistan chose Monforts machinery for its new textile complex in Kaka and together with the machines for Babadayhan and other recent projects we are proud to say that 15 Monforts machines are now established in the country.”