From the Sector

At the Annual General Meeting of Autoneum Holding Ltd on 24th March 2023, a clear majority of the shareholders approved the introduction of a capital band in the amount of approximately CHF 100 million net proceeds to finance the acquisition of Borgers Automotive. The proposal to waive the payment of a dividend for the 2022 financial year in view of the lower net result was also approved. In addition, Board member Rainer Schmückle as well as CEO Matthias Holzammer were given a farewell.

221 shareholders attended today’s Annual General Meeting of Autoneum Holding Ltd in Winterthur. 66.48 percent of the share capital was represented.

The shareholders approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2022. The proposal of the Board of Directors to waive the payment of a dividend for the financial year 2022 due to the lower net result was also approved by the Annual General Meeting.

In addition, the shareholders of Autoneum Holding Ltd granted discharge to all members of the Group Executive Board and the Board of Directors by a large majority of votes.

Chairman Hans-Peter Schwald and the other members of the Board of Directors Liane Hirner, Norbert Indlekofer, Michael Pieper, Oliver Streuli and Ferdinand Stutz were confirmed in office for another year. Hans-Peter Schwald, Norbert Indlekofer, Ferdinand Stutz and Oliver Streuli were re-elected to the Compensation Committee.

The consultative vote on the 2022 remuneration report was approved by 85.55%. The proposals for the remuneration of the Board of Directors and the Group Executive Board for the 2023 financial year as well as the other proposals were also approved by a large majority.

With 99.03%, a clear majority of the shareholders approved a capital band authorizing a capital increase of approximately CHF 100 million net proceeds. The purpose of the capital increase is to partially finance the acquisition of the automotive business of the Borgers Group announced by Autoneum on January 9, 2023. The Annual General Meeting also approved the other proposals of the Board of Directors for partial amendments to the Articles of Association.

Rainer Schmückle did not stand for re-election. He had been Vice Chairman of the Board of Directors, Chairman of the Audit Committee and member of the Strategy and Sustainability Committee since Autoneum became independent in 2011. CEO Matthias Holzammer, who will leave Autoneum for family reasons, was also bid farewell.

At the same time, Hans-Peter Schwald welcomed the new CEO Eelco Spoelder, who will take over the management of the Group from Matthias Holzammer on March 27, 2023: "With Eelco Spoelder, Autoneum gains an accomplished leader with many years of experience in the automotive supply industry. At Faurecia and previously at Continental, Mr. Spoelder has successfully proven that he can ensure strategic continuity and operational excellence even in a difficult market environment. I and the other members of the Board of Directors warmly welcome Eelco Spoelder and look forward to our future cooperation."

RadiciGroup presented Biofeel® Eleven, a yarn of natural origin, at the Performance Days trade fair (from March 15-16 in Munich). Biofeel® Eleven is sourced from castor oil and is suitable for obtaining bio-polymer. It can be used for fabrics and fine garments in many sectors, from fashion to sports, from automotive to home textiles.

Today, 80% of the world's castor-oil plantations are in India, particularly in the Gujarat region, due to its favourable climatic conditions. In this area, local people can earn an additional income by cultivating semi-arid land that does not compete with food production, and by applying the skills they have acquired over time to this work. Over the years, thanks to research, development and innovation in the value chain, the seeds from which the oil is produced have been selected and certified to ensure the finest quality, also in terms of end uses.

Castor beans contain around 45% oil, rich in ricinolein, from which the bio-polymer polyamide 11 is derived. This is the polymer RadiciGroup uses for its Biofeel® Eleven yarn. What remains after the first pressing is a highly effective bio-fertiliser that is returned to the soil.

Biofeel® Eleven can also be solution dyed, i.e. dyed at the yarn production stage, saving a great deal of water and energy and also providing greater colour stability.

The Institut für Textiltechnik (ITA) of RWTH Aachen University, as part of the Mittelstandzentrum 4.0 Kompetenzzentrum Textil vernetzt, has supported numerous small and medium-sized enterprises (SMEs) on their way to digitalisation over the last five years. At the Digital Capability Center (DCC) in Aachen, for example, SMEs were able to experience digitised production from yarn to smart bracelets and thus test the feasibility of Industry 4.0 solutions in their working environment.

New supply chain laws and social sustainability now pose current challenges for SMEs. In the follow-up project Mittelstand-Digital Zentrum Smarte Kreisläufe (SME Digital Centre Smart Cycles), ITA will be supporting SMEs from 1 March in implementing ideas for digitalisation and sustainability in concrete terms.

This means finding sustainable solutions and processes for the circular economy together with companies and developing new digital business models. The ITA's solutions cover the areas of awareness-raising, qualification, implementation and networking. These offers are free of charge for SMEs - follow-up projects often lead to the funding programme "Central Innovation Programme for SMEs - ZIM" of the Federal Ministry of Economics and Climate Protection (BMWK) or to research and development projects.

Questions concerning the funding conditions can be sent to the following e-mail address: rosario.othen@ita.rwth-aachen.de.

The Global Organic Textile Standard is pleased to announce the release of GOTS Version 7.0, which features an expanded scope of environmental and social criteria while maintaining a standard that is practicable for industrial production and appropriate for a wide range of products. During the regular year-long revision process, international stakeholders with expertise in organic production, textile processing, textile chemistry, human rights and social criteria, as well as representatives from industry, NGOs and civil society organisations, contributed to the new Version 7.0 through multiple consultation rounds. Final decisions were made by the multistakeholder GOTS Standard Revision Committee.

GOTS Version 7.0 provides a comprehensive solution for companies who want to produce organic textiles ensuring compliance with environmental and human rights due diligence along the entire supply chain, from field to finished product. With full traceability from origin to destination, GOTS certification provides an efficient means of verifying genuine sustainability efforts. GOTS 7.0 introduces new requirements to conduct risk-based due diligence of Certified Entities’ own operations and their supply chains based on the UN Guiding Principles for Business and Human Rights and the OECD guidelines. The Social Criteria section was substantially revised to include a broader human rights-focused approach. GOTS 7.0 now allows recycled organic fibres as additional materials. Key requirements, such as certified organic fibre content, a general ban on toxic and harmful chemicals such as PFAS, conventional cotton and virgin polyester restrictions, and social compliance management, are maintained in GOTS Version 7.0.

Some of the changes in Version 7.0 include:

• GOTS and the Manual for the Implementation of GOTS were restructured, and sections were grouped to reflect the standard’s scope.
• New due diligence criteria ensures that Certified Entities address their actual and potential negative impacts on human rights and the environment.
• GOTS Environmental Criteria, Product Stewardship, and Environmental Health and Safety (EHS) requirements will also apply to the subcontractors of chemical formulators.
• Criteria for the incoming organic material have been made stricter.
• Quinoline is included among the prohibited substances and some existing restrictions have been made tighter such as of “aniline, free”, residue limit is decreased to 20 mg/kg from 100 mk/kg.
• GOTS 7.0 reduces the permissible quantity of recycled synthetic (polymer) fibres in its certified products, taking into account the disadvantages associated with recycled synthetics, such as microplastics and poor quality.
• In the pursuit of circularity, GOTS will allow use of recycled GOTS Goods waste as an additional fibre in its certified products.
• GOTS Human Rights and Social Criteria will now require Certified Entities to respect internationally recognised human rights protocols, including the International Bill of Human Rights and other international human rights treaties.
• Criteria concerning Discrimination, Violence and Harassment were revised to make them more comprehensive and include the International Labour Organisation (ILO) Violence and Harassment Convention (C190).
• Certified Entities are now required to develop a plan to cover the living wage gap.
• GOTS Occupational Health and Safety criteria were revised to consider best international practices and recommendations from the ILO.

For more information, see the following documents:

• GOTS Version 7.0
• Change Log GOTS 7.0
• Change Log Manual for the Implementation of GOTS 7.0
• Guideline for the new structure of GOTS 7.0

The third edition of IFCO Istanbul Fashion Connection took place from 8 to 11 February 2023. At the largest IFCO to date, 588 exhibitors in a total of 9 halls at the Istanbul Expo Center met more than 10,000 international trade visitors from 134 countries such as Brazil, Canada, Chile, Colombia, Germany, Malaysia, Mexico, Nigeria, Panama, Saudi Arabia, South Africa, South Korea, Thailand, UK, United Arab Emirates. 45% of the visitors were from 134 countries and 55% of visitors were domestic. The largest group of foreign visitors came from Asia (33%), Middle East (33%), Europe (19%) and Africa (13%).

Divided into clear cut exhibition segments on a total of 100,000 sqm of exhibition space brands and manufacturers showed the latest collections from the areas of womenswear, menswear, kidswear, denim, sportswear, evening and weddingwear, lingerie, hosiery, leather & furs.

In the new high-quality designer area The CORE İSTANBUL, internationally renowned designers from Istanbul Fashion Week presented their exciting and creative designs.
“The Core is the premier platform that connects local fashion designers with the international fashion market. Our mission is to showcase the work of Istanbul´s talented designers who are dedicated to creating unique and innovative fashion designs while embracing conscious and sustainable practices.”, says Günes Güner, curator of The Core.

Even more design power was on display at the KOZA Design Competition for young fashion creators. IMA Istanbul Moda Akademisi was responsible for the design of the IMA LAB trend zone at IFCO. In the creative space, the trends and themes of the coming season were taken up and presented in a visually elaborate way. Euphoric Recall encompasses colourful, playful 70's vibes, Metasphere describes the return of glitter and metallic with a futuristic touch. The New Gen area featured pieces by up-and-coming designers of the next generation.

In two separate halls, LinExpo gave an overview of lingerie and hosiery. As a part of IFCO 145 manufacturers presented themselves here.

A large selection of high-quality bridal and evening dresses and suits were shown in the FashionIST area.

In the IFCO Sourcing area, especially designed for production, trade visitors networked directly with international production companies such as Bozkurt, Bilce Tekstil, Gelişim, Karar, Cemsel, Bozpa, Demezoğlu, Zevigas and more.

The next IFCO is scheduled from August 9 to 11, 2023.

The Supervisory Board of adidas AG has extended the appointment of Harm Ohlmeyer as Chief Financial Officer of the company by another three years until the beginning of 2028. Harm Ohlmeyer has been member of the Executive Board of adidas AG since March 2017 and the company’s CFO since May 2017.

At the same time, the Supervisory Board appointed Arthur Hoeld as Executive Board member, responsible for Global Sales, as of April 1, 2023. Hoeld has been with adidas for 25 years, most recently as Managing Director of the company’s EMEA region since 2018. He will succeed Roland Auschel, who has decided to step down from his role, pass on the baton and leave the company after 33 years with adidas, including ten years as an Executive Board member.    

Furthermore, Brian Grevy, Executive Board member of adidas AG, responsible for Global Brands, has informed adidas AG’s Supervisory Board that he will step down from the Executive Board and leave the company. In mutual agreement with Brian Grevy, the Supervisory Board approved the termination of his appointment as an Executive Board member as of March 31, 2023. adidas CEO Bjørn Gulden will assume responsibility for Global Brands. In this role, Gulden will lead adidas product and marketing activities, which will enable the required fast decision-making across all business units and departments.

Thomas Rabe thanked Brian Grevy for his many important contributions during his years of service with the company. Grevy initially joined adidas in 1998 and held leadership positions of increasing responsibility for adidas on a local, regional and global level before leaving the company in 2016. At the beginning of 2020, Brian Grevy returned to adidas as the company’s Executive Board member for Global Brands.

As of April 1, 2023, the company’s new Executive Board will consist of Bjørn Gulden (Chief Executive Officer and Global Brands), Arthur Hoeld (Global Sales), Harm Ohlmeyer (Chief Financial Officer), Amanda Rajkumar (Global Human Resources, People and Culture) and Martin Shankland (Global Operations).

Textile waste is a problem in Europe. Out of 7-7.5 million tonnes of textiles discarded every year, 30-35 % are collected separately – and of that quantity, 15-20 % are sorted by medium and larger sorting facilities within the EU. After sorting, 60 % still qualify as wearable clothes, however after a second or third collection-loop, all of the textiles become non-wearable sooner or later. Therefore, fibre-to-fibre recycling is becoming increasingly important to preserve the valuable resources.
 
The textile recycling value chain is not yet mature, but we are on the verge of a turning point, as different fibre-recycling technologies are deployed on a large scale. If successful, the textile recycling industry could reach a recycling rate of 18 to 26 percent of gross textile waste in 2030. This would create economic, social and environmental value that could total 3.5 to 4.5 billion euros in 2030.

Today, there is a sorting gap to achieve a circular economy for textiles in Europe. To feed this new circular value chain, a significant sorting-capacity increase is needed with 150 to 250 sorting and recycling facilities nearby, as the McKinsey-study “turning waste into value” assessed.

There is also a technology and capacity gap in sorting for reuse and recycling to ensure that high quality raw materials from non-wearable textile waste can be made available on a large scale. This is why the “Transform Textile Waste into Feedstock” project was initiated by TEXAID, within the ReHubs initiative together with well-known stakeholders of the textile value chain.

The major outcome of this project will be a sorting-factory blueprint fulfilling the requirements to the future needs of fibre-to-fibre recycling, enabling the future of more sustainable textiles by using recycled fibres. TEXAID, who is leading the project, is committed to build and operate scalable sorting facilities across Europe, the first with a capacity of 50,000 tonnes by the end of 2024.

Companies like Concordia, CuRe Technology, Decathlon, Inditex, Indorama Ventures, L’Atelier des Matières, Lenzing, Marchi & Fildi, PurFi, Södra, Worn Again and others are taking part in the project to jointly evaluate technologies and the business case for scaled sorting for reuse and recycling. ITA Academy GmbH (in cooperation with RWTH Aachen) together with CETIA has been commissioned for the assessment of technologies. The outcome will be an innovative sorting system 4.0, building on cross-functional technologies with digitalization and automation are at the heart.

• Oerlikon takes leadership position in luxury metalware

Oerlikon has successfully closed the acquisition of Riri, following the signing of the agreement announced on December 16, 2022.

Riri is a provider of coated metal accessories for the luxury fashion industry. This deal is the strategic next step to complement Oerlikon’s acquisition of Coeurdor in 2021. It expands Oerlikon’s foothold in the luxury market and together creates a leading platform in luxury metalware. As the demand for PVD coatings grows, Oerlikon’s PVD technologies that provide environmentally friendly solutions will accelerate the shift of the luxury goods industry to greener PVD technology.

Renato Usoni, CEO of Riri, will lead the newly formed luxury business unit of Oerlikon as President Oerlikon Luxury. Riri will operate as a separate business within the Surface Solutions division. Its zippers and buttons will continue to use the Riri and Cobrax brands on individual products. Oerlikon will consolidate Riri as of March 1, 2023.

Milliken’s Textile Business plans to eliminate all PFAS-containing materials from its portfolio by December 31, 2022.
The company announced a commitment to eliminate all per- and polyfluoroalkyl substances, commonly referred to as PFAS, from the company’s textile finishes and fibers portfolio.

“Sustainability is a core value of our company, and we are and have always been on a quest for continuous improvement,” shares Halsey Cook, president and CEO for Milliken & Company. “As part of our sustainability journey, we are committed to finding innovative and meaningful solutions to reduce our environmental impact. While we do not always begin our journey with perfect information, we strive to make adjustments as new information comes to light.”

“As a values-driven company, we’re always evaluating the needs and demands of the markets we serve. Our promise to our customers is to engineer the highest-quality protective and performance textiles, and our purpose is to positively impact the world for generations,” said Chad McAllister, executive vice president, Milliken & Company, and president, Milliken’s Textile Business.

• Sales of CHF 890.3 million in second half-year 2022
• EBIT margin of around 2% expected for full year 2022
• Order intake of CHF 1 157.3 million in 2022; order backlog of around CHF 1 540 million as of December 31, 2022
• Preparations for ITMA 2023 on schedule
• Implementation of action plan to increase sales and profitability ongoing
• Rieter site sales process on schedule

For Rieter, in addition to the geopolitical uncertainties, the 2022 financial year was characterized by three main challenges:
Due to the rapid rise in inflation, the exceptionally high order backlog of around CHF 1 840 million at the beginning of 2022 was processed at significantly higher costs. It was only possible to offset these higher costs in part by means of price increases and other remedial measures.

In order to safeguard deliveries, it was necessary to compensate for serious material bottlenecks, particularly in electronic components, which resulted in considerable additional development expenditure.

Major expenses were also incurred in connection with the acquired businesses (Accotex, Temco and Winder).

Sales
The realization of sales from the exceptionally high order backlog developed better than expected. With sales of CHF 1 510.9 million, Rieter achieved an increase of 56% compared with the previous year (2021: CHF 969.2 million). In the second half of 2022, especially in the fourth quarter, the measures introduced to address material bottlenecks had a positive impact. Consequently, sales increased to CHF 890.3 million compared with the first six months (first half-year 2022: CHF 620.6 million).

EBIT margin
The trend in the EBIT margin was strongly influenced by substantial cost increases, which could only be offset in part through price increases and other remedial measures. In addition, to compensate for material shortages, expenses were incurred in connection with the development of alternative solutions and the acquired businesses.

Rieter succeeded in improving profitability compared with the first half of 2022 due to the higher sales volume and offsetting measures to compensate for increased costs, and expects a positive EBIT margin of around 2% for the full year 2022 (2021: 4.9%).

Order intake
In line with expectations, the order intake of CHF 1 157.3 million in 2022 was below the record year of 2021 (CHF 2 225.7 million). The market situation is characterized by investment restraint due to geopolitical uncertainties, higher financing costs and consumer reticence in important markets.

Order backlog
The company had an order backlog of around CHF 1 540 million at the end of 2022, which thus extends well into 2023 and 2024. In 2022, Rieter recorded order cancellations of less than 10% of the order backlog of CHF 1 840 million at the beginning of the year.

Preparations for ITMA 2023 on schedule
Rieter has continued to boost its innovative capability and, in order to further extend its technology leadership, will present new innovative solutions at ITMA 2023 in Milan.

Action plan to increase sales and profitability
Implementation of the action plan to increase sales and profitability is ongoing. With regard to the profitability of the order backlog, which remains high, the implemented price increases in combination with a favorable trend in costs, particularly in logistics, are having an impact. In addition, progress was made in eliminating material bottlenecks and reducing expenses for the three acquired businesses.

Rieter site sales process
The sales process for the remaining land at the Rieter site in Winterthur (Switzerland) is proceeding according to plan. In total, around 75 000 m² of land will be sold. The Rieter CAMPUS is not part of this transaction.

Results press conference 2023
Rieter will provide further details on the 2022 financial year and an outlook for the 2023 financial year on March 9, 2023.