From the Sector

Vom 17.-19. März fand die physische Ausgabe der  CHIC Shanghai im National Exhibition and Convention Center in Shanghai statt und zeigte sich erneut als Trendkatalysator und wichtiges Face-to-Face Event der Modebranche mit über 88.000 Besuchern.

Unter strikter Einhaltung der Hygienemaßnahmen ermöglichte Asiens Leitmesse an drei Tagen persönliche Kontakte und rege Geschäfte. Teilnehmer und Besucher begrüßten die Möglichkeit sich vor Ort zu treffen, die Matchmaking Aktivitäten wurden verdreifacht.

Insgesamt 932 Brands präsentierten die gesamte Modepalette in 10 Bereichen. Besonders im Fokus der Messe unter dem Motto „CHIC Garden“ stand das Thema Sustainability, kreativ umgesetzt von den chinesischen Künstlern Ma Defan und Li Haitao, begleitet von der Green Fashion Society und dem Sustainable Fashion Forum.

Neben den  CHIC Shows, die mit beeindruckenden Designer-Schauen überzeugten, wurde auch der renommierte FN Footwear News China Achievement Award verliehen. Im CHIC Wonderland drehte sich alles um innovative Sneaker.

Financial Year 2020

As a consequence of the COVID-19 pandemic, Rieter closed the 2020 financial year with sales of CHF 573.0 million, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million). Due to the low sales volume, a loss of CHF 84.4 million was recorded at the EBIT level while at the net profit level the loss was CHF 89.8 million. In view of the loss in the 2020 financial year, the Board of Directors proposes that shareholders waive the payment of a dividend for 2020.

Order intake of CHF 640.2 million in the 2020 financial year was 31% down on the previous year (2019: CHF 926.1 million). Following the significant slump in demand in the second quarter of 2020 (CHF 45.7 million), order intake recovered in the third quarter (CHF 174.4 million) and improved further in the fourth quarter (CHF 215.1 million).

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

Business Groups
Sales of the Business Group Machines & Systems amounted to CHF 295.8 million in 2020, which corresponds to a decrease of 24% compared to the previous year. Due to the low volume and taking into account the expenditure on the ongoing innovation program, the business group recorded a loss of CHF 72.4 million at the EBIT level. Order intake in the reporting year was CHF 363.9 million (-35% compared to the previous year).

The Business Group Components with sales of CHF 174.3 million (-24% compared to the previous year) achieved a profit of CHF 1.4 million at the EBIT level before restructuring charges. EBIT after restructuring charges was CHF -5.5 million. The order intake with CHF 169.1 million (-24% compared to the previous year) was just below sales.

The Business Group After Sales achieved sales of CHF 102.9 million (-27% compared to the previous year) and a positive EBIT of CHF 1.8 million. Order intake was CHF 107.2 million (-24% compared to the previous year). Over 60% of spinning mills were shut down in the second quarter of 2020, with a corresponding impact on the demand for spare parts.

Dividend
Due to the loss of CHF 89.8 million at the net profit level in the 2020 financial year, the Board of Directors proposes that shareholders waive the distribution of a dividend.

Outlook
Rieter expects the market recovery that began in the second half of 2020 to continue in 2021. The company expects an order intake in the first half of 2021 exceeding that of the previous half year (second half of 2020: CHF 389.5 million). Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nonetheless, as already announced, Rieter still anticipates that sales in the first half of 2021 will be below the break-even point. In connection with the high order backlog at the beginning of 2021, Rieter expects an operating profit for the full year 2021.

The spring editions of the three fairs – Intertextile Shanghai Apparel Fabrics, Intertextile Shanghai Home Textiles and Yarn Expo Spring – that were due to take place from 10 – 12 March 2021 will be postponed, with a new date to be announced shortly. Messe Frankfurt made the decision along with the co-organisers of the fairs to comply with local authority guidelines.

Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd explained the decision: “In compliance with the Shanghai Municipal Center for Health Promotion’s pandemic prevention and control guidelines for exhibition activities, and after careful evaluation and discussion with relevant stakeholders, we have decided to postpone the three fairs to a later date. We have begun a discussion with the three fairs’ stakeholders as well as the fairground regarding a new date, and aim to hold the rescheduled shows within March to minimise the impact to our exhibitors and buyers and still accommodate their buying needs for the current spring / summer season. While the new dates will be announced shortly, we are grateful in the meantime for the understanding and patience of all those involved.”

Further information:
Intertextile Shanghai Apparel Fabrics
Intertextile Shanghai Home Textiles
Yarn Expo

Order Intake Continued to Recover in the Fourth Quarter of 2020:

• Order intake increased to CHF 215.1 million in the fourth quarter of 2020 and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales expected
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee

Rieter posted a globally and broadly supported order intake of CHF 215.1 million in the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020 after the slump in demand in the second quarter continued (order intake second quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds to a decrease of 31% compared to the previous year.

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

As expected, as a consequence of the economic effects of the COVID-19 pandemic, the Rieter Group closed the 2020 financial year with considerably lower sales than in the previous year. According to the first, as yet unaudited figures, total sales of CHF 573.0 million were achieved, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million).

Order Intake by Business Group
All three business groups were affected by the slump in demand in the second quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order intake in the third and fourth quarters of 2020, the weak second quarter was only partially offset.

The Business Group Machines & Systems was particularly hard hit by the effects of the pandemic, with a year-on-year decline of 35%. The Business Groups Components and After Sales each recorded a 24% reduction in order intake.*

Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in all three business groups. Accordingly, reluctance to invest and deferred deliveries by customers caused sales in the Business Group Machines & Systems to decline by 24% compared to the previous year.

Due to COVID-19, a large number of spinning mills stopped production worldwide. This led to low demand for spare parts and wear parts, especially in the second and third quarters of 2020. Accordingly, compared to the previous year, sales in the Business Groups Components and After Sales fell by 24% and 27% respectively in the 2020 financial year.*

Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a consequence of the COVID-19 pandemic.*

EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019: 11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31, 2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in the mid three-digit million range.

First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the first half of 2021 to be below the break-even point.*

Change to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding Ltd. has appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.*

Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur on April 15, 2021.*

*See attached document for more information.

U.S. Senator Sherrod Brown (D-OH) and U.S. Representative Kathy Manning (D-NC) wrote to President Biden calling on the Administration to prioritize purchasing fully made in America Personal Protective Equipment (PPE). The lawmakers outline four steps the Administration can take now to ensure our frontline workers have products needed to effectively carryout their critical responsibilities and to support domestic manufacturers who are ready to scale up production and help keep workers healthy and safe.

In their letter, Brown and Manning call on President Biden, through Executive Order and legislative efforts, to:

1. Prioritize the purchase of fully made in America PPE “Berry compliant” to help continue bolstering the U.S. supply chain regardless of purchasing agency;
2. Issue long-term contracts directly to domestic manufacturers when possible to help bolster the domestic supply chains;
3. Adopt a contracting purchase methodology that uses “Best Value” criteria versus “Lowest Price Technically Acceptable” criteria; and
4. Designate a point person in charge of coordinating the government’s efforts to procure PPE and other medical equipment who is responsible for meeting regularly with key domestic manufacturing stakeholders.

A full copy of Brown and Manning’s letter can be found here.

Sorpol Ltd., a leading importer and distributor of industrial raw materials in Israel, has launched a website to sell Acteev Protect™ masks, made in the USA by polyamide manufacturer Ascend Performance Materials. The two companies also plan to partner in the distribution of Acteev surgical masks, N95 respirators, nonwoven media and textile fabrics as they become available.

Laboratory tests have demonstrated Acteev fabric effective at deactivating 99.9% of the viruses SARS-CoV-2, the cause of COVID-19, and H1N1, a flu virus. Acteev technology also eliminates bacteria and fungi.

Ofer Soreq, Sorpol’s marketing director, said the Acteev Protect line fits in neatly with the mission of the company.

Recent testing on Acteev fabric completed at the University of Cambridge has demonstrated that Acteev technology deactivates the virus that causes COVID-19, SARS-CoV-2, with 99.9% efficacy on contact. Ascend has submitted several masks designs to the U.S. Environmental Protection Agency and the U.S. Food and Drug Administration to obtain the appropriate regulatory clearances to make specific claims regarding the technology’s antiviral properties in the United States.

In addition to antiviral, antifungal and antibacterial protection, the washable, reusable masks are lightweight, breathable and odor-fighting, making them comfortable to wear during a long shift at work or for outdoor workouts.

Acteev Protect shows promise for use beyond masks, according to Ascend. The technology was originally developed for workout wear, and now the company is working on textile applications ranging from gloves to scrubs to high-end athleisure

• Corona gab in der pro4tex GmbH, Niederfrohna, den Ausschlag für die Entwicklung hoch funktioneller Gesichts-Bedeckungen für den Einsatz in Medizin, Pflege und im Alltag
• Masken mehrfach nutzbar
• Modernes Unternehmen
• Vorbildliches Wassermanagement

Niederfrohna– Kunden, die sich für Bodywear oder Sportbekleidung von bekannten Markenherstellern entscheiden, legen nicht nur Wert auf modischen Chic und hohe Verarbeitungsqualität. Ebenso wichtig sind ihnen Produkteigenschaften wie Hautfreundlichkeit, Farbechtheit und anhaltend gute Passform. Diese Qualitäten erwerben feine Strick- und Wirkwaren grundsätzlich in der Färberei sowie beim Waschen, Laugieren, Thermofixieren, Kompaktieren, Schlauchkalandern und Rauen sowie in der Ausrüstung durch den Einsatz entsprechender Chemikalien.

Zu den dem Endverbraucher meist unbekannten Firmen, die diese Prozesse beherrschen, gehört die pro4tex®GmbH mit Sitz in Niederfrohna unweit von Chemnitz. „In der Fachwelt sind wir bekannt als Textilveredler für feine Maschenwaren und spezielle technische Textilien. Wir haben Auftraggeber in Europa, Asien und Nordamerika“, erläutert Geschäftsführer Björn-Olaf Dröge. Der aus Detmold (NRW) stammende und seit 20 Jahren in Sachsen lebende Diplom-Ingenieur (FH) für Textiltechnik hatte die Firma 2009 mit 60 Mitarbeitenden übernommen und 2011 das Partnerunternehmen Willy Hermann – Superfine aus Hard (Österreich) als Mitgesellschafter für die GmbH gewonnen. Mittlerweile zählt pro4tex 104 Beschäftigte, die die moderne Veredelungstechnik dreischichtig auslasten. Auf 16 Mio. EUR belaufen sich die die Kosten für Neu- und Erweiterungsinvestitionen in vergangenen zehn Jahren. Der Betrieb ist zertifiziert nach den DIN-EN-Normen ISO 9001, ISO 14001 und ISO 50001. Mit rund 7,5 Mio. EUR Umsatz liegt dieses Ergebnis im Corona-Jahr 2020 um 15 Prozent unter dem Wert von 2019

„Textilveredler galten früher als Umweltverschmutzer, insbesondere in puncto Abwasser. Das hat sich in den vergangenen drei Jahrzehnten gründlich geändert“, erläutert Dr.-Ing. Jenz Otto, Hauptgeschäftsführer des in Chemnitz ansässigen Verbandes der Nord-Ostdeutschen Textil- und Bekleidungsindustrie e. V. (vti). „Dennoch geht es beim Färben und Ausrüsten nicht ohne Chemikalien. Bei deren Einsatz sind unsere Firmen strengen europäischen Umweltrichtlinien unterworfen.“ Nach Angaben des vti existieren im Verbandsgebiet, den ostdeutschen  Bundesländern, mehr als 20 mittelständische Betriebe, die Textilien für modische, technische oder medizinische Zwecke fit machen.

Die pro4tex GmbH verfügt bereits seit langem über ein qualifiziertes Wasser-Management. „In der Färberei geht ja ohne Wasser fast gar nichts. Deshalb widmen wir dem wertvollen Nass unsere besondere Aufmerksamkeit“, erklärt Geschäftsführer Björn-Olaf Dröge. „Wir decken unseren Wasserbedarf vollständig aus drei eigenen Brunnen und nicht aus dem öffentlichen Netz. Das in der Produktion gebrauchte Wasser unterziehen wir anschließend diversen chemischen, biologischen und physikalischen Reinigungs- und Wiederaufbereitungsprozeduren. Am Ende fließt unser Wasser klar und für die Umwelt unbedenklich in den nahegelegenen Frohnbach. Wir sind stolz darauf, dass wir zu den wenigen europäischen Textilveredlern gehören, die in der Fachsprache ‚Direkteinleiter‘ genannt  werden und dafür die behördliche Genehmigung haben."

Bereits vor Ausbruch der Corona-Pandemie hatte sich pro4tex mit der antibakteriellen Ausrüstung von Gesundheitsschutz-Textilien beschäftigt. Als dann zu Jahresbeginn die Lieferungen aus China ausblieben und plötzlich Mund-Nasen-Masken aus deutscher Produktion gefragt waren, reagierte das pro4tex-Team innerhalb weniger Tage. „Im Kooperation mit einem ostsächsischen Klinikum und dem Textilkonfektionär Fifty-Fifty im benachbarten Burgstädt, haben wir partielle Gesichtsbedeckungen entwickelt und damit erstmals in unserer Firmengeschichte ein Endprodukt auf den Markt gebracht“, berichtet Geschäftsführer Björn-Olaf Dröge. Dabei handelt es sich um hoch funktionelle Mehrweg - Masken, die dreilagig aufgebaut sind. Die in mehreren Farben und Designs erhältliche Außenhaut wirkt abweisend gegen Tröpfchen bzw. Flüssigkeiten, der darauf angebrachte Einsatz aus ein Spezialvliesstoff filtert feinste Partikel aus der Atemluft. Die am Gesicht anliegende atmungsaktive Schicht wird weder gefärbt noch anderweitig behandelt. Da es sich bei Innen- und Außenhaut um feine Polyestergestricke handelt, zeichnen sich Mund-Nasen-Bedeckungen durch ein angenehmes Tragegefühl aus. Die nach der für medizinische Gesichtsmasken gültigen Norm DIN EN 14 683 zertifizierten Masken sind atmungsaktiv und durchnässen nicht. Nach dem Erstgebrauch können sie mindestens 20 Mal bei 75 Grad Celsius gewaschen und ebenso oft wiederverwendet werden. Mittlerweile sind sie in Berliner Kliniken, bei der Deutschen Bundesbahn sowie in anderen Unternehmen im Einsatz. „Wer einmal unsere flexiblen Gesichtsbedeckungen getragen hat will keine andere mehr“, zeigt sich Björn-Olaf Dröge überzeugt. Und er verweist darauf, dass er Sachsens Ministerpräsident Michael Kretschmar wiederholt mit einem Erzeugnis aus seinem Unternehmen
gesehen hat.

• Looking to the future – Frankfurt Fashion Week is positioning itself with a consistently sustainable agenda and propelling the transformation of a modern, resource-efficient fashion industry.

The Conscious Fashion Campaign (CFC), working in collaboration with the United Nations Office for Partnerships (UNOP), will be the presenting partner and the Sustainable Development Goals (SDGs) will be a prerequisite for all exhibitors by 2023. And the Frankfurt Fashion SDG Summit by CFC is set to become the leading international conference for sustainability in the fashion world. The future of fashion has begun – and its key players will be coming together in Frankfurt am Main from 5-9 July 2021.
 
Frankfurt am Main, 2 December 2020. Joining forces to improve the fashion industry: Frankfurt Fashion Week is positioning itself as the host of the future of fashion and actively driving forward the transformation towards a future-oriented, more sustainable fashion and textile industry. All decision-makers looking to instigate this change will be coming together in Frankfurt am Main from 5-9 July 2021. The initiators of Frankfurt Fashion Week – Messe Frankfurt and the Premium Group – have achieved a real coup: Conscious Fashion Campaign, working in collaboration with the United Nations Office for Partnerships, will be the presenting partner. Messe Frankfurt will build on its collaboration with the United Nations Office for Partnerships and establish Frankfurt Fashion week as the platform on which to advance the Sustainable Development Goals and help guide the fashion industry into the 'Decade of Action'.
 
“Frankfurt will play host to the whole world. We are seeing a very positive response indeed,” confirmed Peter Feldmann, Senior Mayor of the City of Frankfurt am Main, at today’s digital press conference, before going on to say: “The fact that the initiators are able to rethink the concept of a Fashion Week in such a way is extremely impressive and proves that the fashion industry is correctly interpreting the signs of the present and future. The time has come for value creation and values to be reconciled. Consistent alignment with the Sustainable Development Goals is an important step in this direction.”
 
“Frankfurt Fashion Week aims to play a crucial role in finding solutions for macrosocial challenges and supporting the goals of international politics such as the European Green Deal. The fashion and textile industries are also expected to be climate-neutral by 2050. If we want to achieve this, we all need to pull together. Frankfurt Fashion Week is inviting all initiators and supporters of sustainable concepts and congresses or shows dedicated to sustainability to meet in Frankfurt, partake in discussions and make tangible decisions for the greater good. We will connect the most relevant players and pave the way for a future-proof fashion and textile industry,” says Detlef Braun, CEO of Messe Frankfurt.
 
“Given its global reach, the fashion industry is uniquely positioned to collaborate and engage on the Sustainable Development Goals, in particular on climate action and responsible production and consumption,” said Annemarie Hou, Acting Executive Director of the United Nations Office for Partnerships. “Frankfurt Fashion Week and the Summit will serve as an important platform for education and engagement of the fashion and textile industry in the Decade of Action,” emphasised Ms Hou.
 
The aim of Frankfurt Fashion Week is for all exhibitors, participants and partners to align with the Sustainable Development Goals by 2023. The SDGs will also be incorporated into all formats of Frankfurt Fashion Week. This will help to make the UN’s sustainability goals visible and tangible for the Fashion Week audience, therefore bringing its claim, goals and specific proposals for implementation to an international opinion-forming fashion and lifestyle community. During a one-day Frankfurt Fashion SDG Summit presented by Conscious Fashion Campaign, topics like gender equality, clean water, climate protection, social justice and their significance for a forward-looking fashion industry will be examined in greater depth. Another point on the sustainability agenda: Frankfurt Fashion Week is launching a Sustainability Award for outstanding, innovative, sustainable design, alongside other categories with a global appeal for the fashion and textile industry.
 
"We are committed to setting the wheels of transformation in motion. Not only does the overall mindset have to fundamentally change; the entire industry also needs to have the courage to be transparent and honest. It’s important to see values and value creation as opportunities rather than contentious. We are doing what we do best: connecting the relevant players at all levels. With its ecosystem, Frankfurt Fashion Week will become the enabler. We are creating a platform that will orchestrate industry-wide change. With this as our inspiration, we are also developing our tradeshow formats from a ‘marketplace of products’ to a ‘marketplace of purpose and ideas’,” explains Anita Tillmann, Managing Partner of the Premium Group.
 
A new start in Frankfurt: In summer 2021 the entire fashion industry will be coming to the metropolis on the Main river to inform themselves, be inspired, discuss, negotiate and celebrate. “There’s a huge need to finally meet in person again, to exchange ideas and be inspired. At the same time, digital tools and formats have become an integral part of the fashion industry,” says Markus Frank, Head of the City of Frankfurt’s Department of Economic Affairs and therefore also responsible for its creative industry. “To implement such a future-oriented, all-encompassing overall concept, Frankfurt’s business and creative scenes offer an almost unique concentration of different expertise with its internationally networked agencies, universities and museums. The city’s multifaceted, high-end club, bar and restaurant scene, diverse hotel industry and internationally renowned retail landscape will become the stage for this. This network will be a key factor in the successful implementation of Frankfurt Fashion Week and the way in which it will expand into the public space as a cultural and social happening.”
 
A number of major publishing houses are also showing their commitment to the new Fashion Week in Frankfurt with conferences, events and awards: Textilwirtschaft, the leading professional fashion journal by the Deutscher Fachverlag publishing house, is moving its traditional meeting of the industry’s top decision-makers – the TW Forum, the presentation of the renowned Forum Award, as well as its subsequent conference – from Heidelberg to Frankfurt’s Palmengarten botanical gardens, and will therefore be kicking off Frankfurt Fashion Week on Sunday evening and Monday morning. The Frankfurter Allgemeine Zeitung will be hosting its traditional fashion party for the first time in Frankfurt and publishing a special edition of its FAZ Magazin on Frankfurt Fashion Week. And the ZEIT publishing group is holding its ‘UNLOCK Style by ZEITmagazin’ conference, which was established in 2014, and the ZEITmagazin Fashion Week party in Frankfurt for the first time and will dedicate the whole new issue of ZEITmagazin Frankfurt to Frankfurt Fashion Week. Condé Nast will also be involved in next summer’s Frankfurt Fashion Week with an exclusive event by GQ. And the Burda publishing house will also be represented with various event formats from its lifestyle and fashion brands.There will also be talks with SHINE  Conventions, the organiser of GLOW, about what a mutual collaboration could look like.
 
Frankfurt Fashion Week is also delighted to have the Fashion Council Germany (FCG) on board.  The FCG is theinstitution when it comes to German fashion design. It promotes designers, is committed to gaining more political relevance and strengthens the international visibility and awareness of German fashion. At Frankfurt Fashion Week, the FCG will contribute selected formats, such as its already established Fireside Chat, and a future-oriented accelerator format to support German designers.
 
“What really impresses me about Fashion Week is the whole networking aspect: the creative industries will meet the financial world and sustainability is the common denominator. The Green Finance Cluster is another project that we could link with Frankfurt Fashion Week in the future. This will provide new inspiration in the fashion industry, which will certainly extend way beyond its own horizon of Frankfurt and Hesse. After a very difficult year for the trade fair industry, the concept is an encouraging breath of fresh air,” sums up Tarek Al-Wazir, Hesse’s Minister of Economics, Energy, Transport and Regional Development and Deputy Minister-President of the state of Hessen.

Since the outbreak of the coronavirus pandemic, the worldwide demand for protective masks and apparel has resulted in a record number of new orders in the high double-digit millions of euros at Oerlikon Nonwoven. The meltblown technology from Neumünster is recognized by the market as being one of the technically most efficient methods for producing highly-separating filter media made from plastic fibers.

Protective equipment demands high-end nonwoven products
The rising demand for protective masks and other medical protective equipment since the start of the coronavirus pandemic and the associated global ramping up of production capacities has also resulted in an increase in the demand for nonwovens for the production thereof. Initially, this resulted in bottlenecks in the provision of meltblown filter nonwovens. To this end, there had until this point be very few producers of medical filter nonwovens outside China. Meanwhile, the demand for spunbond systems is also rising. “Due to the structure of our group, we are in the fortunate position to swiftly reallocate and free up our production capacities. This means that we are able to relatively quickly deliver not only meltblown systems, but also spunbond equipment”, explains Dr. Ingo Mählmann, Head of Sales & Marketing at Oerlikon Nonwoven, talking about the positive situation at the company.

The capacities for respiratory masks available in Europe to date are predominantly manufactured on Oerlikon Nonwoven systems. “Our machines and systems for manufacturing manmade fiber and nonwovens solutions enjoy an outstanding reputation throughout the world. Ever more manufacturers in the most diverse countries are hoping to become independent of imports”, comments Dr. Mählmann. The Oerlikon Nonwoven meltblown systems are being delivered to Germany, China, Turkey, United Kingdom, South Korea, Italy, France, North America and – for the very first time – to Australia until well into 2021.

Quality and efficiency in demand
Depending on the purpose of the application, medical PPE (personal protection equipment) should be breathable and comfortable to wear, protect medical staff against viruses, bacteria and other harmful substances and form a barrier against liquids. For these reasons, they are often made of either pure spunbond or of spunbond-meltblown combinations. Here, the meltblown nonwoven core assumes the barrier or filter task, while the spunbond has to retain its shape, while being tear-resistant, abrasion-proof, absorbent, particularly flame-resistant and nevertheless extremely soft on the skin.

All masks are not created equal – thanks to the ecuTEC+
Protection against infections such as coronavirus can only be guaranteed with the right quality.

The nonwovens can be electrostatically-charged in order to further improve the filter performance without additionally increasing breathing resistance. Here, Oerlikon Nonwovenʼs patented ecuTEC+ electro-charging unit excels in terms of its extreme flexibility. Nonwovens manufacturers can freely choose between numerous variation options and set the optimal charging method and intensity for their specific applications. In this way, even the smallest particles are still attracted and reliable separated by a relatively open-pored nonwoven. Nevertheless, mask wearers are still able to easily breathe in and out due to the comparatively loose formation of the fibers. To this end, it comes as no surprise that all meltblown systems currently destined for the production of mask nonwovens are equipped with the ecuTEC+ unit.

An impairment charge has become necessary based on the current status of the new 5 year plan.

(Market Abuse Regulation N° 596/2014)
•    Impairment loss amounting to €80-100 million in the fourth quarter 2020 in the business unit CFM
•    Restructuring program resolved with savings target of more than €100 million until 2023
•    Guidance 2020 for Group sales and operating recurring Group EBIT confirmed
•    Guidance 2020 for net result reduced to minus €130-150 million

In the current status of the 5 year plan, which is at present under preparation, significant deviations have already become apparent today, particularly in the market segments Automotive, Aerospace and Wind Energy in the business unit Composites – Fibers & Materials (CFM). Partially also due to the pandemic, Automotive and Aerospace is developing slower than anticipated in the last 5 year plan. In contrast, business with Wind Energy is growing much stronger than previously planned. These changes in the product mix lead to lower mid-term earnings at CFM compared to the prior 5 year plan. Following these deviations from the last 5 year plan, an event-driven impairment test was undertaken. This results in a non-cash impairment charge amounting to €80-100 million, which will be recorded in the fourth quarter 2020.

The Board of Management of SGL Carbon SE today also resolved the implementation of a restructuring program, with which the Company is targeting savings of more than €100 million until 2023 (compared to the base year 2019). These savings consist of a planned socially compatible reduction in personnel of more than 500 employees and substantial reduction in indirect spend, particularly in the areas of travel, consulting and external services. Costs of approximately €40 million are anticipated for the implementation of this restructuring program. A little more than half of this is expected to be recorded as expenses in the fourth quarter 2020, while the associated cash outflows are mainly forecasted for 2021.

This requires a partial adjustment of the guidance for 2020. The solid operational development in the third quarter 2020 with Group sales between €220 and €230 million and operating recurring EBIT1 between €13 and €15 million (plus approximately €9 million positive one-time effects) is within the framework of our expectations for the full year 2020. However, the Group net result is likely to develop below the prior year level of minus €90 million and reach approximately between minus €130 and €150 million due to the restructuring provisions as well as the impairment charge (prior guidance: improvement to a negative low double-digit million € amount).

With liquidity of €167 million as of September 30, 2020 (compared to €137 million at year-end 2019) and further cash inflows in the fourth quarter 2020 from successfully implemented additional funding measures, the Company’s position is solid. This liquidity is more than sufficient for the payment of the purchase price for SGL Composites USA in the amount of USD 62 million at the end of 2020 as well as the restructuring-related cash outflows expected mainly in 2021. The Company continues to have access to the revolving credit facility (RCF) in the amount of €175 million, which remains undrawn.

The quarterly statement as of September 30, 2020 will be published on November 12, 2020 as scheduled. Further details on the new 5 year plan as well as the guidance on the fiscal year 2021 will be presented with the publication of the Annual Report 2020 on March 25, 2021.

*The use of KPIs in this notification is aligned to the annual report 2019 and the interim report for the first half year 2020. There were no changes to the scope of consolidation or to valuation methods compared to the previous guidance.