From the Sector

In line with the new Level Up corporate strategy, which focuses on innovation and a future-fit product portfolio among other things, Autoneum has further expanded its research and development activities in 2024 with a particular focus on New Mobility. In addition to establishing a specialized team to accelerate the development and market readiness of novel products and technologies for electric vehicles, the Company has complemented its global innovation network with a new Research & Technology (R&T) Center in Shanghai, China.

Innovation is and always has been an integral part of Autoneum’s corporate strategy and thus a key factor for business success. The Company’s innovation activities are also an important aspect of its vision: to be the global leader for innovative and sustainable solutions bringing comfort to every vehicle. Against the backdrop of the rapidly advancing electrification of mobility and Autoneum’s strategic focus on further expanding its presence in the Asian growth markets, the expansion activities of the company-wide innovation network this year concentrated on two key areas in particular: New Mobility and presence in China.

Responding to the increasing demand for new components for electric vehicles, Autoneum has formed a specialized team dedicated exclusively to New Mobility to further strengthen its position in this growing market segment. The New Mobility team was established in fall 2023 and has been completed over the past twelve months with members from different departments. It unites a broad set of skills from various fields of expertise such as product innovation, product development and industrialization, sales and business development. The team places a particular focus on accelerating the development and time to market of new products and technologies specifically for the fast-evolving battery systems and architectures of electric vehicles. It also acts as a catalyst for innovation pro-jects and strategic partnerships. The New Mobility experts work in close collaboration with the various departments across the organization and are based at Autoneum’s Swiss headquarters in Win-terthur, at the German locations in Gundernhausen and Munich and in Shanghai, China.

Shanghai is also the location of Autoneum’s third R&T Center worldwide, which was opened in China this summer to enhance the Company’s competitiveness in Asia and cater to the development and innovation needs in this key strategic market. The new center aims to intensify and accelerate the development and production of innovative components and materials, especially regarding e-mobility. The establishment of an R&T team in China allows Autoneum to develop products in a timely manner to respond to the dynamic market conditions and the rapidly evolving requirements of Chinese vehicle manufactures. In terms of material development, the center will support the wider organization in the further development of sustainable materials, especially polyester. In addition, it will promote the introduction of Autoneum’s environmentally friendly products such as the Company’s monomaterial carpet systems featuring Autoneum’s innovative and latex-free alternative backcoating (ABC) process to the Chinese market. Moreover, the R&T Center in Shanghai will also serve as a valuable point of contact with the 14 production facilities of the Jiangsu Huanyu Group, whose acquisition of a majority stake of 70 percent by Autoneum was recently announced and is expected to be closed in March 2025 (see media release of November 19, 2024). While the plants in China will benefit from the local R&T team’s expertise in the company’s technologies, the existing broad customer base of Jiangsu Huanyu Group will support Autoneum in better understanding and serving the innovation needs of Chinese vehicle manufacturers.

The new R&T Center in Shanghai complements the primary R&T Center in Winterthur, Switzerland, which supports the global network with its expertise and a vast array of services in the areas of pre-development as well as acoustic and thermal benchmarking, simulation and testing, and the center in Bocholt, Germany. The latter was integrated into Autoneum’s innovation network following the acquisition of Borgers Automotive last year and has since established itself as the Company’s competence center for trunk and trim components. Including the new center in China, a total of approximately eighty R&T employees – including engineers, chemists, physicists and product designers – are continuously working on new ideas aimed at the next technological breakthrough in acoustic and thermal management and shielding technologies.

Autoneum signed an agreement to acquire 70 percent of the shares of Jiangsu Huanyu Group, a leading automotive supplier for acoustic and thermal management in China. Business Group Asia is thus expanding its customer base to include major Chinese vehicle manufacturers such as BYD, BAIC and GAC, and will significantly increase its annual revenue. The transaction is scheduled to close in March 2025.

With around 30 million light vehicles produced annually, China is the world’s largest automotive market and, with an expected increase to 32.4 cars in 2030, it is also one of the most important growth markets for the automotive industry. Established in 2001, Jiangsu Huanyu Group is today one of China’s leading suppliers of lightweight components for light and commercial vehicles. The company operates 14 production facilities with around 1 100 employees in the immediate vicinity of local automotive manufacturers in the north, west and southeast of China.

Jiangsu Huanyu Group’s product portfolio includes components for the vehicle interior such as carpets, inner and outer dashes, headliners, trunk and interior trim, wheelhouse outer liners as well as insulation for the engine bay and the underbody. Jiangsu Huanyu Group also supplies commer-cial vehicle manufacturers in China, supporting Autoneum’s strategic initiative to grow its truck business in China. Synergies in the areas of technology and purchasing will also contribute to the further development of Business Group Asia. In the 2023 financial year, Jiangsu Huanyu Group generated revenue of around CHF 130 million and is recording strong growth in 2024. It is planned to continue operating the company under the Chinese company name.

The acquisition of Jiangsu Huanyu Group will be done in two phases. The closing of phase 1, the takeover of a majority stake of 70 percent at a purchase price of around CHF 75 million (excluding cash and cash equivalents and debt), is expected in March 2025 after approval by the authorities. As for the acquisition of the remaining 30 percent of the share capital, phase 2, Autoneum has a call option, which can be exercised in 2028. This two-phase approach binds both the current shareholders and the employees in key positions and allows Autoneum, together with Jiangsu Huanyu Group, to continue and further develop existing business activities smoothly.

“Jiangsu Huanyu Group has broad customer access to the largest local vehicle manufacturers in China. With its plants in the key automotive hubs in China, the company is an excellent strategic addition to Autoneum and brings us a significant step closer to our medium-term target of generating 20 percent of Group revenue in Asia,” explains Eelco Spoelder, Chief Executive Officer of Autoneum. “The acquisition of the majority stake in Jiangsu Huanyu Group will strengthen our position in China, the world’s largest and fastest-growing market, both in the light and commercial vehicle business. This step not only gives us access to an established customer base in China, but also allows us to further expand our presence and gain strong influence in the booming automotive hubs of Anhui and Shaanxi.”

Global Fashion Summit, the international forum for sustainability in fashion, presented a special Shanghai Gala edition on 7 November during the China International Import Expo (CIIE). The event was presented by Global Fashion Agenda (GFA) and Chinamind NEXT and gathered key local and international fashion industry stakeholders for an evening of compelling discussions during a gala dinner at The St. Regis Shanghai Jingan.
 
Global Fashion Summit: Shanghai Gala was centred on the theme, ‘Unlocking the Next Level’, and built on insights from the Global Fashion Summit: Copenhagen Edition held in May. By hosting the Summit in Shanghai—a dynamic city that melds tradition with innovation and sets global trends—the event aimed to promote dialogue and cross-country collaboration to influence sustainable practices on an international scale.
 
Throughout the evening, guests heard from distinguished speakers from companies including COACH, H&M Group, Piaget China, Chinamind NEXT, Décor Global, Erdos Cashmere Group, Target, Balian Group, and more. Discussions addressed critical topics such as ‘Circularity at Scale’, ‘Shaping Sustainable Retail’, and ‘Ambition to Action’, spotlighting key strategies for accelerating the implementation of sustainability across the fashion value chain.
 
At the event, GFA announced the publication of The GFA Monitor 2024 - a resource designed to guide industry leaders towards creating a net positive fashion industry. Launched ahead of COP29, this year's publication serves as a streamlined update, highlighting both significant advancements and ongoing challenges in the industry.
 
Federica Marchionni, CEO, Global Fashion Agenda, says: “The inaugural edition of Global Fashion Summit in China marked an evening of profound thought leadership, demonstrating the opportunity for the industry to convert ambitious goals into meaningful actions with ripple effects felt across communities and ecosystems worldwide. In this new era, we are forging critical dialogues and alliances at the Summit, which we plan to build upon at our next Summit in Copenhagen next year.”
 
Ms. Lynn Fu, CEO, Chinamind NEXT, remarked, “The arrival of Global Fashion Summit in Shanghai as the most respected summit in the sustainable fashion industry, marks a significant milestone. It has sparked profound discussions among participants on the theme of Unlocking the Next Level. As the world’s largest consumer of apparel and textiles, China has a substantial impact on driving sustainable industry trends and cultivating consumers’ green preferences. When Chinese fashion companies and international brands collaborate more passionately on their sustainable visions, profound and enduring benefits for the industry will be delivered.”
 
During the event, GFA also announced the official launch of ticket sales for the upcoming Global Fashion Summit: Copenhagen Edition 2025, scheduled for 3-5 June next year. The theme for the 2025 edition was revealed as ‘Barriers and Bridges’, which will guide the discussions and actions planned for next year’s summit.

In recent years, Vietnam has rapidly transformed into one of the world’s key textile producers, solidifying its position as the world’s third-ranked exporter behind China and Bangladesh. With a history rooted in silk textile craftsmanship and currently embracing wide ranging modern textile production, the country’s thriving sector offers tremendous growth prospects for both domestic and international businesses. In a bid to harness the potential in Vietnam and Southeast Asia, the Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) will return from 26 – 28 February 2025, with a renewed focus on promoting sustainability and digital transformation.

Vietnam's textile and apparel sector comprises approximately 7,000 companies and employs over three million workers, with 80% of production capacity used for export and 20% for domestic consumption. Progress is aided by well-developed logistics networks, skilled labour and a stable political environment. As its textile industry evolves, several key trends are influencing its future direction, reflecting a growing emphasis on sustainability and technological advancement, and leading to new opportunities for exhibitors and buyers across the value chain at Vietnam’s comprehensive textile showcase.

Major trends shaping Vietnam's textile market reflected at VIATT
More Vietnamese enterprises are adopting eco-friendly materials, including organic cotton, recycled polyester, and Tencel, while numerous global brands manufacture in Vietnam, and have committed to the "Fashion Industry Charter on Climate Action", aiming to achieve net-zero carbon emissions by 2050.

To further advance sustainable initiatives in the domestic and international textile industry, VIATT 2025 will introduce Econogy Hub, a dedicated platform for innovative, eco-friendly suppliers and service providers to connect with like-minded visitors. The show’s other new Texpertise Econogy features will include the Econogy Finder, an independent verification tool to help sustainable exhibitors effectively communicate their green credentials, and Econogy Talks, the overarching category for eco-focused seminars, forums, and product presentations.

Apart from sustainability, the Vietnamese textile industry is also embracing advanced technologies in design and manufacturing. The launch of the fair’s Innovation & Digital Solutions Zone will provide a centralised platform for exhibitors to showcase innovations such as 3D printing, AI-driven design, and digital printing, which enable manufacturers to boost efficiency and customise products to meet specific market demands.

As well as the introduction of two new product zones, the India Pavilion, organised by The Cotton Textiles Export Promotion Council (TEXPROCIL), will also make its debut at VIATT 2025. Additionally, the Japan and Taiwan Pavilions have confirmed their return, with the Japan Pavilion recognised by VIATT’s visitors as a standout showcase within Southeast Asia's textile fair landscape. Overall, the fair will feature a diverse range of exhibitors across apparel, home textiles, and technical textiles, with many showcasing innovative and sustainable products.

The Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) is organised by Messe Frankfurt (HK) Ltd and the Vietnam Trade Promotion Agency (VIETRADE), covering the entire textile industry value chain.

Global Fashion Summit, the international forum for sustainable fashion rooted in Denmark, will be hosted in China next month. The special Global Fashion Summit: Shanghai Gala edition will take place on 7 November 2024 during the China International Import Expo (CIIE). The event, presented by Global Fashion Agenda (GFA) and Chinamind NEXT, will bring together local and international industry stakeholders for an evening of informative discussions during a celebratory gala dinner.

Convening major decision-makers from across the world, Global Fashion Summit was first launched by GFA in Copenhagen in 2009. In the 15 years since its inception, it has become a nexus for agenda-setting discussions and presentations on the most critical environmental, social and ethical issues facing our industry and planet, all intended to spark urgent action and accelerate impact in the industry.

As the first event of its kind in China, the Global Fashion Summit: Shanghai Gala content will build on the theme of June’s Copenhagen Edition - "Unlocking The Next Level". With deadlines for sustainability targets looming, fashion finds itself at a critical juncture. Unlocking the next level of impact requires new depths of collaborative action and sharing of evidence-based progress to overcome barriers.

China plays a critical role in unlocking this transformation. China was the world’s largest exporter of readymade garments in 2023, with a 31.6 per cent market share and exports worth 165 billion USD. The soaring growth of Chinese ultra-fast fashion brands is also significantly shaping consumer purchasing practices, meanwhile, China’s luxury market has almost doubled since in 2019. Global Fashion Summit: Shanghai Gala will therefore aim to promote collaboration across the fashion industry's value chain, highlight pressing environmental and social issues, bridge differences between global markets, eliminate information gaps, and share innovative solutions.

The gala dinner will set the scene ahead of GFA’s participation in CIIE (China International Import Expo) on 8 November 2024 - a forum renowned for its focus on sustainable innovation technology. Federica Marchionni, CEO, GFA, will deliver a keynote address during the CIIE to an audience of esteemed leaders that will showcase how innovation and emerging technologies can drive sustainability in lifestyle sectors and advance the industry towards climate goals.

Flat knitting technology company SHIMA SEIKI MFG., LTD. of Wakayama, Japan, is participating in the ITMA Asia + CITME 2024 exhibition in Shanghai, China. In line with its exhibition concept at ITMA 2023 and ITMA Asia + CITME 2022 held last year, SHIMA SEIKI continues the concept for this year’s exhibition: “SHIMA SEIKI Reborn".

SHIMA SEIKI Reborn represents a return to origin, for the company and for its products, and a renewal of passion and commitment toward innovation. The concept is manifested in physical form as the long-awaited production version of the SWG-XR® next-generation WHOLEGARMENT® machine, introduced to much acclaim as prototypes at ITMA 2023 in Milan, Italy and ITMA Asia + CITME 2022 exhibits last year.

Of the 5 knitting machines SHIMA SEIKI is exhibiting at its 350 sq. meter booth in Hall 4, Stand F01, 4 are WHOLEGARMENT® knitting machines, 2 of which are the new SWG-XR® machines, shown. 2 other WHOLEGARMENT® knitting machines and 1 prototype computerized flat knitting machine round out the machine exhibit. Approximately 270 knit items are on display as proposals for knitted applications in various fields ranging from fashion to shoes, bags and accessories.

In addition to machine technology, SHIMA SEIKI's computer graphic design system and software are shown with their latest software upgrades that feature significant improvements in knit programming, 3D functions and speed, as well as generative AI functions. Demonstrations are available for a comprehensive fashion tech solutions package based on realistic virtual sampling and supported by various digital solutions and web services.

Based on customer feedback as well as industry and media response at ITMA 2023 and ITMA Asia + CITME 2022, SHIMA SEIKI's exhibit is likely to garner much attention at ITMA Asia + CITME 2024 as well.

With 42 exhibiting member companies, ITMA ASIA + CITME 2024 is once again marked by a strong presence of VDMA companies. They cover nearly all different machinery chapters with a focus on spinning and man-made fibers, nonwovens, weaving, braiding, knitting & warp knitting, finishing & dyeing as well as technologies for textile recycling and processing of recycled material.
In total, the German participation at the fair is the largest from outside China.

The VDMA team in Shanghai is staffed again with colleagues from the VDMA headquarters in Germany as well as from VDMA China. With these joined forces, the team is well prepared to support the exhibiting member companies on site.

Dr. Harald Weber, Managing Director VDMA Textile Machinery Association, summarised: “Although facing a difficult market situation, this year’s ITMA ASIA is an essential showcase for the member companies of the VDMA Textile Machinery Association. There is definitely no shortage of chances and opportunities in China and other Asian markets. The exhibiting members will demonstrate their smart technologies that can pave the way to a green textile production and are looking forward to welcoming numerous visitors from various countries to their booths in Shanghai.”

China is aiming at a green and low CO₂ development of its textile industry. At a press conference on the first day of ITMA ASIA + CITME, Georg Stausberg, member of the board of VDMA Textile Machinery and CEO of the Oerlikon Polymer Processing Solutions Division said: “Topics, such as energy efficiency and the careful use of resources have become increasingly important for Asian customers in recent years, not least due to stricter legal framework conditions. VDMA members and their technologies are the right partners on the road to a greener and low CO₂ textile production.”
 
Export performance
Already in 2023, the global textile machinery exports decreased by 18.6 % compared to 2022. This was a challenge all major textile machinery producing countries had to face. However, the German exports remained relatively strong and only declined by 3.4 % in 2023. 2024 did not see a change in the global textile industry and thus the German exports have now also dropped significantly. Between January and July 2024, German exports of textile machinery and accessories summed up to 1.2 billion € (2023: 1.6 billion €). The shipping to almost all major markets decreased between January and July: China: 242 million € (2023: 384 million €), Turkey: 140 million € (2023: 180 million €), USA: 118 million € (2023: 152 million €), India: 100 million € (2023: 153 million €).

Sales opportunities in Asia
An economic survey of VDMA in September, to which 20 textile machinery companies replied, reflects the global challenging situation. Around 36 % assessed their current business situation as satisfactory, 54 % said it was bad. Only very few companies expect the global situation to improve in the next six months.

However, looking at the sales opportunities by regions/countries in Asia, most of the responding companies expect a better business situation in the Asian markets except China in six months. The business situation is expected to be on a satisfactory level then. With regard to this, a presence at ITMA ASIA in Shanghai and next year in Singapore is important for VDMA members to continuously show their innovations and to keep contact with the customers in Asia.

About 50 Italian companies will exhibit at ITMA ASIA + CITME 2024, taking place from October 14 to 18 in Shanghai. With an area of around 1,400 square meters, Italy ranks among the top exhibiting countries, as in previous editions. 29 Italian exhibitors will show their innovations within the National Sector Groups, organized by ACIMIT (Association of Italian Textile Machinery Manufacturers) and Italian Trade Agency.

ITMA ASIA + CITME show has always been the main showcase for textile machinery manufacturers in Asia, that absorbs over 50% of global exports. Moreover China is the world’s largest market in the sector (the value of imported textile machinery in 2023 was around 2.6 billion euro).

For Italian manufacturers as well, the Chinese market is the top foreign destination. In 2023, Italian sales to China amounted to 222 million euro. In the first six months of this year, exports to China increased by 38%, while the performance of total Italian exports declined slightly in the same period.

“We hope that the recovery of the Chinese market, observed in this first half of the year, may be an early indication of a more general upturn in global demand for machinery,” says ACIMIT President Marco Salvadè. Over the past few years, demand from Chinese companies has turned to technologies that combine savings in production costs and environmental friendliness, as also demanded by brands and end consumers. “Today, Italian manufacturers can offer highly customized solutions that are particularly suited to making textile production more sustainable,” confirms Salvadè. “The Chinese textile machinery market is rapidly evolving, and the level of innovation in the technology requested has risen due to the growing international competition that even Chinese companies face. In Shanghai, Italian manufacturers will display their latest innovations, essential for making textile production more efficient and sustainable.”

As of October 1, 2024, Dr. Christian Rink will take over the position of global CFO of the CHT Group held by Prof. Dr. Klaus Müller on an interim basis. In this role, he will be responsible for Finance & Controlling, Information Technology, Digitalization, Compliance Management and Project Management. From now on, Dr. Christian Rink will form the Management Board together with CEO Eva Baumann.

Dr. Rink has gained extensive experience in various functions within the Bosch Group, where he held management positions in Logistics and Finance & Controlling. Among other things, he was Commercial Head Asia Pacific for the Bosch Home Comfort Group in Shanghai, China, and most recently Vice President Finance and Controlling of the Business Unit Electric Solutions which was responsible for building up the Bosch Group's heat pump business.

Die KARL MAYER GROUP begrüßte Anfang September an ihrem Hauptsitz in Obertshausen eine Delegation aus Regierungsvertretern der Stadt Dezhou in der Provinz Shandong und Unternehmern. Die Zusammenarbeit zwischen der Provinz und Europa zu vertiefen, war das Ziel der Reisenden, darunter Weiding Tian, Sekretär der Stadtverwaltung von Dezhou, Dashan Wang, Parteifunktionär aus dem Tianqu New District, und Guiting Jiang, Präsident der Jingjin Equipment Co., Ltd.. Das Unternehmen ist einer der führenden Hersteller von Lösungen für Industriefilter in China. Es nutzt seit fast einem Jahrzehnt Kettvorbereitungsanlagen von KARL MAYER, um hochwertige Textilien für seine Produkte zu fertigen. Kürzlich wurden größere Investitionen in neue Maschinen getätigt.

Die Gäste wurden von CFO Dr. Helmut Preßl, vom Leiter Sales & Marketing der KARL MAYER-Kettvorbereitung Dieter Gager und von Kevin Socha, u.a. Managing Director von KARL MAYER (H.K.), begrüßt und durch das Unternehmen geführt. Gezeigt wurden die neusten Kettenwirkmaschinen at work und zukunftsweisende Einsatzfelder der hierauf gefertigten Textilien, Kettvorbereitungstechnologie der neusten Generation und die umfassenden Schulungsmöglichkeiten der firmeneigenen Academy.

Als Zeichen des gegenseitigen Vertrauens wurde eine Vereinbarung über die technische Zusammenarbeit zwischen der Jingjin Equipment Co., Ltd. und der KARL MAYER GROUP unterschrieben. Der Textilmaschinenhersteller will künftig seinem chinesischen Kunden technische Kettvorbereitungsneuheiten für dessen speziellen Anwendungsbereich bereits in einer sehr frühen Phase der Markteinführung zur Verfügung stellen. Die Jingjin Equipment Co, Ltd. dagegen beabsichtigt, bei Modernisierungs- und Expansionsprojekten vorrangig Maschinen von KARL MAYER zu berücksichtigen. Die Vertragsunterzeichnung fand in München auf dem „Dezhou Multinational Kooperation Exchange Symposium“ statt.