From the Sector

Textiles for technical applications often derive their special function via the application of coatings. This way, textiles become, for example wind and water proof or more resistant to abrasion. Usually, petroleum-based substances such as polyacrylates or polyurethanes are used. However, these consume exhaustible resources and the materials can end up in the environment if handled improperly. Therefore, the German Institutes of Textile and Fiber Research Denkendorf (DITF) are researching materials from renewable sources that are recyclable and do not pollute the environment after use. Polymers that can be produced from bacteria are here of particular interest.

These biopolymers have the advantage that they can be produced in anything from small laboratory reactors to large production plants. The most promising biopolymers include polysaccharides, polyamides from amino acids and polyesters such as polylactic acid or polyhydroxyalkanoates (PHAs), all of which are derived from renewable raw materials. PHAs is an umbrella term for a group of biotechnologically produced polyesters. The main difference between these polyesters is the number of carbon atoms in the repeat unit. To date, they have mainly been investigated for medical applications. As PHAs products are increasingly available on the market, coatings made from PHAs may also be increasingly used in technical applications in the future.

The bacteria from which the PHAs are obtained grow with the help of carbohydrates, fats and an increased CO₂ concentration and light with suitable wavelength.

The properties of PHA can be adapted by varying the structure of the repeat unit. This makes polyhydroxyalkanoates a particularly interesting class of compounds for technical textile coatings, which has hardly been investigated to date. Due to their water-repellent properties, which stem from their molecular structure, and their stable structure, polyhydroxyalkanoates have great potential for the production of water-repellent, mechanically resilient textiles, such as those in demand in the automotive sector and for outdoor clothing.

The DITF have already carried out successful research work in this area. Coatings on cotton yarns and fabrics made of cotton, polyamide and polyester showed smooth and quite good adhesion. The PHA types for the coating were both procured on the open market and produced by the research partner Fraunhofer IGB. It was shown that the molten polymer can be applied to cotton yarns by extrusion through a coating nozzle. The molten polymer was successfully coated onto fabric using a doctor blade. The length of the molecular side chain of the PHA plays an important role in the properties of the coated textile. Although PHAs with medium-length side chains are better suited to achieving low stiffness and a good textile handle, their wash resistance is low. PHAs with short side chains are suitable for achieving high wash and abrasion resistance, but the textile handle is somewhat stiffer.

The team is currently investigating how the properties of PHAs can be changed in order to achieve the desired resistance and textile properties in equal measure. There are also plans to formulate aqueous formulations for yarn and textile finishing. This will allow much thinner coatings to be applied to textiles than is possible with molten PHAs.

Other DITF research teams are investigating whether PHAs are also suitable for the production of fibers and nonwovens.

In the fourth quarter of 2023 Italian textile machinery orders index, drawn up by the Economics Department of ACIMIT, the Association of Italian Textile Machinery Manufacturers, appears to be stationary compared to data recorded for the same period in 2022. In terms of absolute value, the index stood at 82.4 points (basis: 2015=100).

This is the result of an upswing in orders from foreign markets, counterbalanced by declining orders on the domestic front. While orders in Italy decreased at 18% rate, a 4% increase was observed abroad. The absolute value of the index on foreign markets amounted to 77.9 points, whereas it came in at 126.2 points domestically. Overall for the fourth quarter, the average order backlog yielded 3.7 months of assured production.

For the whole 2023 year, the index declined 25% overall compared to the 2022 average (absolute index of 82.4). On the home front however, the index dropped 24% (absolute index of 124.5), while slipping 25% abroad (absolute index of 78.4).

ACIMIT president Marco Salvadè commented the data: “The orders index for October – December 2023, as elaborated by our Economics Department, confirms an intake of orders that is still weak, with a negative trend in demand for machinery that is ongoing for the domestic market.” Nonetheless, the orders index abroad shows a slight increase. “We estimate that the global geopolitical context is still a source of concern,” continued Salvadè, specifying that, “For the first nine months of 2023, Italian exports on major global markets (i.e. China, Turkey, India and the United States of America), confirm a widespread decline. However, some positive signs emerged in the fourth quarter of last year, as reflected by the latest orders index. For 2024 we expect a consolidation of this trend reversal.”

• Revenues: 477.6 million euros (-6%)
• EBITDA before non-recurring items: 79.0 million euros (-15%)
• Net income: 32.6 million euros (-26%)
• Free cash flow before non-recurring items: 45.3 million euros
• Dividend: €0.36 per share

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2023. Audit procedures have been performed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 3.9 million euros (-3%) and 1.7 million euros (-8%) respectively in Q4, and by 11.2 million euros (-2%) and 4.8 million euros (-6%) respectively in the year, at actual exchange rates compared to like-for-like figures.

OUTLOOK
While the 2023 full-year results were affected by the adverse environment, they also attest to the substantial improvement in the fundamentals of the Group's business model, which will have a positive impact on 2024 results. Persistent macroeconomic and geopolitical uncertainties could nevertheless continue to weigh on investment decisions by the Group's customers.

While the most recent indicators seem to suggest that the situation is unlikely to deteriorate further, the timing and magnitude of a rebound in new system orders remain uncertain.

Outlook for 2024
To facilitate analysis, the accounts of Lectra excluding the Launchmetrics acquisition ("Lectra 2023 Scope") will be analysed separately from the Launchmetrics accounts in 2024.

The Group has based its 2024 objectives on the exchange rates in effect on December 29, 2023, in particular $1.10/€1. When converting 2023 results using the exchange rates retained for 2024, 2023 revenues are mechanically reduced by 4.7 million euros (to 472.9 million euros) and 2023 EBITDA before non-recurring items is reduced by 2.2 million euros (to 76.8 million euros). Thus, for the Lectra 2023 Scope, the comparisons between 2024 and 2023 printed below are based on constant exchange rates.

At this early stage of 2024, continuing low visibility regarding orders and revenues from new systems makes it impossible to predict the actual timing and scale of the future rebound in this area. On the other hand, visibility is high for recurring revenues, which accounted for 68% of total revenues in 2023 and will continue to grow in 2024.

In light of the above, Lectra has set as its objective for 2024, for the Lectra 2023 Scope, to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The low end of the revenues range is based on the absence of a rebound in new systems orders, which would remain stable in 2024 relative to 2023, with a 6% decline in revenues from perpetual software licenses, equipment and accompanying software and non-recurring services, as the order backlog was lower on December 31, 2023 than a year before.

The high end of the revenues range reflects a gradual rebound in new systems orders, which at year-end 2024 would be back to year-end 2022 level.
 
In addition, Launchmetrics revenues (for the consolidation period from January 23 to December 31) are projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15% (assuming an exchange rate of $1.10/€1).

Messe Frankfurt will extend its footprint in the Central Asian market by establishing seven brand events in Tashkent, Uzbekistan. The country’s strategic location as a crossroads of Europe and Asia positions it as a promising trade gateway and transportation hub, facilitating the economic development of neighbouring countries and access to the wider region. The company’s stronger presence in the market will promote business opportunities and foster the sustainable development of pillar industries, including cosmetics, textiles and clothing, automotive, logistics and transportation.

Uzbekistan has a promising consumer market with significant potential. It is the largest in Central Asia and is expected to increase due to population growth, rising incomes and the modernisation of economic and industry sectors.
 
The nation has actively sought to diversify its economy in recent years, undertaking reforms for greater entrepreneurial freedom and opening up to more international and regional cooperation. The country already exports precious metals, textiles and agricultural produce. It imports machinery, equipment, means of transportation, and vehicle components from foreign trading partners. Attracting overseas investment is also apparent through incentives such as tax benefits, reduced import duties and simplified procedures for overseas investors.
 
In addition, shifting global supply chains and trading patterns could also drive opportunities in the region. The nation benefits from its geographical location owing to its position between Asia and Europe, to which the Uzbek Government recognises the prospects of investing in infrastructure, such as transportation and logistics, to create an efficient transit hub. Against this backdrop, China acknowledges the importance of developing routes along the Belt and Road while Europe has expressed a readiness to support Uzbekistan’s efforts to diversify transport corridors.

Line-up of shows include:

• Automechanika Tashkent; Futuroad Expo Tashkent; and, Scalex Tashkent: 23 – 25 October 2024
• Heimtextil Uzbekistan; Texworld Tashkent; and, Apparel Sourcing Tashkent: 6 – 8 November 2024
• Beautyworld Central Asia: 21 – 23 November 2024

Haelixa, the trailblazer of physical traceability solutions, has partnered with Trudel Silk, a market leader for sustainable organic and recycled silk products. This collaboration brings traceability and transparency to silk production.

Silk is one of the finest and smoothest fabrics; the better the quality of the silk, the more luxurious it feels to the touch. To create the best quality silk, the conditions for mulberry cultivation must be up to the highest standards. A healthy micro-ecosystem in the fields translates to top-grade silk cocoon quality. At Trudel, this is the environment they have created for the vertical integration of their business. Trudel aims to succeed at every stage of the process, which can only be accomplished through the active involvement and visible cooperation of all market players. These players include farmers, reeling mills, twisting/spinning mills, weaving mills, dyeing and printing mills, and brands. They are involved in every step, from the cultivation of mulberry trees to the production of silk fabrics.

Haelixa and Trudel have collaborated to improve silk’s robust and consistent traceability. As the demand for validation of the silk value chain increases, they have partnered with groups from Italy and Asia to develop a unique solution that uses DNA markers to trace the entire supply chain of silk production. This innovative approach ensures each silk product’s ethical sourcing.

The silk fibers used in their spun silk yarns are marked with a specific DNA per farm set selected by Trudel. Throughout the supply chain, samples of yarn, fabrics, and finished products undergo testing to verify the presence of original silk fibers. Based on the reporting, the brand can trace the finished accessories or garments to Trudel.

“From Earth to Earth”: The new plan defines goals and concrete actions in Environmental, Social and Governance (ESG) areas to foster value creation for all stakeholders and put new sustainability regulatory requirements at the centre of attention.

A project, designed to enhance RadiciGroup's transparency and commitment to develop a responsible business along its entire value chain from an economic, social and environmental perspective and focus on the ever more widespread and stringent sustainability regulatory requirements. These are the features and goals of the Sustainability Plan presented by the Group and called "From Earth to Earth", precisely to emphasize the intent to focus on the Earth and future generations.

In the context of a complex and constantly changing scenario, the Group has therefore decided to capitalize on the goals achieved and look beyond them with a plan defining the medium-term targets and the actions to be taken to fulfil them and covering all areas considered to be "material”, i.e., relevant from the point of view of ESG and financial risks, opportunities and impacts. Indeed, the ultimate goal of "From Earth to Earth" is to support business continuity and the growth of the company and all its stakeholders.

The project was the result of a multi-year collaboration with Deloitte, which contributed an external and objective viewpoint on the definition of the material targets and themes. However, it was not an armchair exercise, but the result of an extensive listening process involving internal and external stakeholders, all of whom were sustainability experts who helped define a shortlist of strategic themes for both the Group and its main stakeholders. These issues were then analysed in detail using working tables on the different themes to identify the objectives in Environmental, Social and Governance areas and the related concrete actions needed to achieve them, in line with the European decarbonization and energy transition policies and the
United Nations Sustainable Development Goals, a global blueprint for sustainable growth.

In particular, RadiciGroup’s environmental goals include: a 20% increase and differentiation in renewable source electricity consumption, an 80% reduction in total direct greenhouse gas emissions by 2030 compared to 2011, attention to water consumption to limit the impact on local communities and biodiversity, the extension of Life Cycle Assessment (LCA) methodology to measure the environmental impact of 70% of the products (in terms of weight) manufactured by the entire Group, collaboration among the various actors in the supply chain from an ecodesign perspective and the search for increasingly more sustainable and circular packaging solutions.

The European Chemicals Agency (ECHA) has published its Strategy Statement 2024-2028. The strategy details the agency’s goals and priorities over the next five years to protect health and the environment through its work for chemical safety.

Main elements of the Strategy – Goals and Priorities

Be a trusted chemicals agency – ECHA aims to achieve this by delivering its legal mandate using independent expertise and robust data. The Agency, to support this, will:

• Deliver transparent, independent, and high-quality scientific advice, opinions, and decisions;
• Enhance decision and policy making through optimal use of data, knowledge, and competence; and
• Facilitate the prioritisation and co-ordination of regulatory actions on substances and groups of substances with the European Commission (EC), EU agencies and Member State Authorities.

 
Respond to emerging challenges and changes in their legal landscape – ECHA will prepare for new tasks and inform EU chemical and environmental policy. To support this goal, it will focus on the following priorities:

• Implement new legal requirements using existing and new synergies and experience;
• Work with relevant EU agencies and bodies to deliver Chemical Strategy for Sustainability (CSS) actions and objectives; and
• Provide scientific and technical advice on chemicals to EU policy makers.

 
Communicate and Engage – by collaborating with stakeholders and partners, ECHA will strengthen public confidence in chemicals regulation. In support of this goal, the Agency will:

• Deepen their network of engagement with EU institutions and agencies and Member States;
• Collaborate and provide tools, advice, and support to industry; and
• Promote awareness and understanding of ECHA's work to stakeholders representing workers, the public and the environment.

 
Lead on chemical knowledge and expertise – the Agency will advance knowledge and understanding on chemical safety. To achieve this, it will:

• Contribute proactively to expanding scientific and technical competence and knowledge on chemical safety;
• Promote the development and use of alternative methods for the assessment of hazards and risks of chemicals; and
• Support the EC to enhance engagement and synergies at international level.

 
Invest in people and organisational excellence – ECHA is committed to working together to achieve their vision. In order to achieve this they will:

• Develop and empower their people for success;
• Create optimal ways of working for the Agency, its bodies, its people, and the environment; and
• Adopt an IT delivery model that is cost-effective, streamlined, modular, interoperable, cloud based and centralised.

Refashion, a textile industry’s eco-organisation, has renewed its authority approval until 2028. 6 years during which it will continue to transform the industry in keeping with the objectives set by the French Ministry of Ecological Transition and the French Ministry of the Economy, including the objective to collect 60% of CHF (clothing, household linen and footwear textiles) placed on the market by 2028. This new period is reflected in an ambitious road map and significantly increased investment. Nearly 1.2 billion euros, financed by the marketers, will be spent on transforming the industry during this new period of authority approval.

Determined to achieve the objectives set out in the ambitious specifications set down by the Secretary of State at the Ministry of Ecological Transition, Berangère Couillard, Refashion has worked on a road map with all of its stakeholders involved in the transformation that is underway. Maud Hardy, nominated as the eco-organisation’s CEO in January 2022, started a collaborative working method that will continue throughout this new period to support areas that are key in this transformation. In the next few months, projects will begin and will visibly highlight the progress made in the three phases of a product’s life cycle: production consumption, regeneration.

Production

• Recognising eco-design initiatives through the eco-modulation of the fees paid by marketers (durability, environmental information labelling, integration of recycled materials). For marketers, these initiatives should represent the scheme’s cornerstone. The aim is to involve all stakeholders in reducing the environmental impact of products.

Consumption

• As from 2023, Refashion will spend 5 million euros minimum per year in awareness-raising activities and on information to the general public by supporting an array of local authority initiatives.
• The launch of a repair fund in 2023, in particular to prolong the usage of textiles and footwear products. More than 150 million euros will be invested between 2023 and 2028 to change the habits of the French population to increase repairs by 35% (guideline target by the ADEME 2019).

Regeneration

• Accelerating clothing, household linen and footwear collection, in particular thanks to an operational mix in the sector. Funding traditional sorting operators will remain central, but Refashion will also develop an additional operational system in order to achieve the collection target of 60% of products placed onto the market (versus 34% in 2021).
• 5% of fees paid to Refashion will go towards the redeployment/reuse funds to provide support for reuse within the remit of stakeholders in the Social and Solidarity Economy. In addition to this funding, additional funding arrangements open to all stakeholders will be established. The total budget throughout the authority approval period represents 135 million euros.
• 5% of fees, i.e., 58 million euros in 6 years, will be spent on R&D to help achieve these milestones in order to industrialise the recycling of used CHF: recyclability that is considered during the design stage; automated sorting and recycling.

The Aachen-based start-up SA-Dynamics is developing sustainable, bio-based and biodegradable insulation materials made from aerogel fibres, thereby setting new standards in resource-saving construction. Dr Sascha Schriever (Institut für Textiltechnik ITA), Maximilian Mohr (ITA), Dr Jens Hofer (ITA Postdoc) and Dr Christian Schwotzer (Department for Industrial Furnaces and Heat Engineering IOB), who trained at RWTH Aachen University, were awarded first place in the KUER.NRW Business Plan Competition 2023 and prize money of €6,000.

SA-Dynamics relies on the impressive properties of aerogel fibres: they have excellent insulating properties, are lightweight, durable, robust, versatile and can be processed very well on conventional textile machines thanks to their flexibility. This makes them comparable to polystyrene, but still sustainable, as SA Dynamics uses bio-based and biodegradable raw materials.

"We can revolutionise the construction world with bio-based aerogel fibres," explains ITA founder Dr Sascha Schriever proudly. "If all insulation materials in construction are converted to bio-based aerogel fibres, all builders can realise their dream of a sustainable house."

SA Dynamics has come a good deal closer to its founding goal by winning the KUER.NRW 2023 business plan competition. The spin-off from Institut für Textiltechnik (ITA) and Department for Industrial Furnaces and Heat Engineering (IOB) at RWTH Aachen University is scheduled for spring 2025.

Der Statusbericht der deutschen Kreislaufwirtschaft 2024 beleuchtet zum dritten Mal nach 2018 und 2020 die Situation der deutschen Kreislaufwirtschaft. Seit der ersten Veröffentlichung im Mai des Jahres 2018 sind fast sechs Jahre vergangen. In diesem Zeitraum haben in Deutschland zwei Ereignisse für eine veränderte Sichtweise auf die Branche geführt: Zunächst die Corona-Krise, die nicht nur die Leistungs- und Anpassungsfähigkeit der Branche, sondern auch ihre Systemrelevanz für die Funktionsfähigkeit des gesellschaftlichen und wirtschaftlichen Lebens unter Beweis gestellt hat. In diesem Zusammenhang ist seit Anfang des Jahres 2020 auch das Ansehen der Abfallentsorgung und vor allem der beteiligten Mitarbeiterinnen und Mitarbeiter in der Bevölkerung deutlich gestiegen.

Der Angriffskrieg auf die Ukraine hat vor Augen geführt, wie stark Deutschland von Energie- und Rohstoffimporten abhängig ist und wie schnell Störungen in den Lieferketten zu Problemen bei der Versorgung mit wichtigen Gütern führen können. Die Abfallwirtschaft kann sowohl durch die Kreislaufführung von Rohstoffen als auch durch die energetische Verwertung wichtige Beiträge zur Reduzierung dieser Abhängigkeiten leisten.

Die Kernthesen des Statusberichtes 2024

• Das gesamte Abfallaufkommen in Deutschland bleibt seit vielen Jahren stabil bei rund 400 Millionen Tonnen, die Abfallmengen aus privaten Haushalten steigen sowohl absolut als auch pro Kopf weiter leicht an
• Die Kreislaufwirtschaft wächst weiter: Mehr Recycling, mehr Beschäftigung und ein Umsatzsprung durch höhere Rohstoffpreise.
• Kreislaufwirtschaft international: Wachsende Märkte für Technik und Güter bei zunehmendem Wettbewerbsdruck für die deutschen Unternehmen
• Kreislaufwirtschaft vernetzt: Bedeutende Beiträge zum Klimaschutz, zur Rohstoffversorgung und zur Energiewende.
• Die Wertschätzung der Branche und ihrer Beschäftigung nimmt zu, gleiches gilt allerdings nicht für die Akzeptanz der für die stoffliche und energetische Verwertung notwendigen Anlagen.
• Kreislaufwirtschaft digital und innovativ: Die Digitalisierung unterstützt Sammlung und Transport, innovative Verfahren verbessern die Recyclingergebnisse, Startups mit neuen Ideen
• Produzenten und Recycler rücken immer enger zusammen, gleichwohl sind für den Wiedereinsatz von Recyclingrohstoffen die Absatzmärkte sicherzustellen
• Brüssel gibt mittlerweile in vielen Feldern der Kreislaufwirtschaft die Zielrichtung und die Geschwindigkeit vor. Das Ziel: Die Transformation von einer linearen Wirtschaft zu einer Circular Economy
• Für den Transformationsprozess zur Circular Economy ist eine funktionierende Kreislaufwirtschaft die wichtigste Basis, gleiches gilt für den Green Deal