From the Sector

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

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

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

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

"ITA Aachen and ITA Augsburg are part of the ITA Group International Centre for Sustainable Textiles. Experience our textile innovations at two exhibition booths," explains ITA Institute Director Professor Dr. Thomas Gries. "See our ring spinning tester at booth H3-B304, which spins recycled fibres sustainably and individually in a previously impossible fineness. In addition, there is digital yarn monitoring, which enables new market potentials. Get an idea of the Recycling Atelier of ITA Augsburg at booth H3-A207 and see the textile cycle from used textile to solution steps for industrial implementation together with industry partners. Join us on the Walk4Recycling and follow the path from used textile to a new knitted pullover on a tour of the trade fair. This is how we live up to our claim as the ITA Group: sustainable - digital - individual."

ITA Aachen - Digital ring spinning tester for recycled fibres enables spinning of fine yarns with high recycled fibres content
The Institut für Textiltechnik of RWTH Aachen University (ITA) will be exhibiting a digital ring spinning tester, which spins recycled fibres directly and conventionally with a particularly high content of 60-70 percent. Up to now, recycled yarns have mainly been rotor-spun in this blend ratio. This results in rather coarse yarns and is not suitable for finer textiles such as outerwear. Ring spinning of recycled yarns now enables the spinning of finer yarns and thus a higher application level for recycled materials.

A unique selling point of the ITA ring spinning tester is the simultaneous spinning in the direct spinning process from the sliver and in the classic ring spinning process. For this purpose, the strength and elongation of the spun yarn are determined online and digitally for the first time. The real-time measurement allows process parameters and yarn properties to be adjusted iteratively and quickly. The ring spinning tester was upgraded from an existing tester to Industry 4.0 standard and is operated via a tablet. Operation via tablet enables the adjustment of process parameters including online quality monitoring remotely from anywhere in the world.
 
For this purpose, the ring spinning tester is also able to produce fine ring spun yarns. These yarns made from recycled material opens up a multitude of further fields of application for woven and knitted goods. Now, for example, clothing and technical textiles can be made from recycled material, the production of which was not possible before - such as outerwear made from recycled material. The development of new industries and fields of application opens up new market potential for recycled yarns - also and especially for processing in Europe. This creates the opportunity to preserve key technologies and jobs in cost-intensive locations.

ITA Augsburg - Recycling Atelier: Walk4Recycling
The Recycling Atelier of the Institut für Textiltechnik Augsburg gGmbH on stand H3-A207 presents the textile recycling from used textiles into new products via the various process steps and, together with the industrial partners, opens up solution paths for industrial implementation.

Under the headline "Walk4Recycling", a tour of the fair shows the cycle of used textiles from used knitwear into a new knitted pullover via a ring yarn made from a blend of 65 percent recycled cotton and 35 percent virgin polyester. The key innovation here is the high proportion of recycled fibres from post-consumer textiles for a ring yarn of this fineness. Today, mainly coarse rotor yarns for low-quality textiles are spun from these materials. The industrial partners participating in the Walk4Recycling are partners of the Recycling Atelier and contribute with their technologies to the fact that fibre material from old clothes can be processed in various process stages into a yarn of new value and high-quality ready-made garments.

The Walk4Recycling offers visitors the opportunity to experience a complete recycling cycle with the numerous process stages from tearing the old textiles, preparing and spinning the fibres and knitting a new jumper live during the fair. Get detailed information on the mechanical recycling of clothing via QR code, website and flyer about the participating exhibitors and their machines and technologies. A short movie will give you additional insights into the various processes involved in the production of the jumper.

• Sales increase by 4.7% to €283.7 million in Q1 2023
• Adjusted EBITDA improves by 9.0% to €40.1 million
• Growth based in particular on strong demand from the semiconductor industry

SGL Carbon generated Group sales of €283.7 million in Q1 2023 (Q1 2022: €270.9 million). This corresponds to an increase of €12.8 million or 4.7% compared to the same period of the previous year. Increased demand for specialty graphite components for the semiconductor industry from the Graphite Solutions business unit contributed in particular to the pleasing increase in sales. But also the Process Technology and Composite Solutions business units continued their positive business development.

Accordingly, adjusted EBITDA (EBITDApre) improved by 9.0% to €40.1 million in the reporting period (Q1 2022: €36.8 million).

Sales development
In the first three months of fiscal year 2023, the business unit Graphite Solutions was the main driver of SGL Carbon's growth with an increase in sales of €21.3 million or 17.8%. This is due in particular to the reallocation of production capacities from the solar industry market segment to the semiconductor industry. The Process Technology (+€6.6 million) and Composite Solutions (+€4.0 million) business units also contributed to the increase in sales.

The Carbon Fibers (CF) business unit recorded a decline in sales of €24.0 million in the reporting period. The decline is mainly due to the scheduled expiry of the attractive supply contract for the BMW i3 in the middle of last year. Freed-up production capacities were compensated by orders from the wind industry in the 2nd half of 2022. But the necessary construction of wind turbines in Europe is currently stalling. Low building permits and high manufacturing costs are temporarily hampering the construction and expansion of wind parks and therefore the necessary increase in renewable energy.

Earnings development
In line with the sales development combined with higher capacity utilization and positive product mix effects, adjusted EBITDA (EBITDApre) improved from €36.8 million to €40.1 million in Q1 2023, representing a quarter-on-quarter increase of 9.0%.

Taking into account depreciation and amortization of €14.3 million (Q1 2022: €14.1 million) as well as one-off effects and non-recurring items of minus €0.1 million, EBIT in the reporting period amounted to €25.7 million (Q1 2022: €31.2 million). It should be noted that Q1 of the previous year was positively impacted by one-off effects and and non-recurring items amounting to €8.5 million. Accordingly, net profit for the period of €15.3 million was lower than in the same quarter of the previous year (€21.5 million).

Debt, equity and capitel expenditure
Net financial debt increased slightly to €174.2 million as of March 31, 2023 (Dec. 31, 2022: €170.8 million). The leverage ratio remains unchanged at 1.0. Due to the positive consolidated net income, the equity ratio increased again slightly compared to the end of fiscal 2022 to 39.5% (Dec. 31, 2022: 38.5%).

Looking at the capital expenditure in Q1 2023, it amounted to €19.0 million, which is higher than the average values of the previous quarters. "At the beginning of 2023, we had already announced the expansion of our investment activities to expand production capacities in the Graphite Solutions business unit. In previous years, our capital expenditure was in line with depreciation and amortization. In addition to these approximately €60 million, we will invest further €20 to €30 million in 2023, which will be financed by advance payments in the context of long-term supply contracts from our customers in the semiconductor industry. Our semiconductor customers secure future production capacities for graphite components, which are needed for their own growth. In return, SGL Carbon's long-term supply contracts will enable future profitable growth," said Dr. Torsten Derr, CEO of SGL Carbon.

Outlook
In line with the business performance in the first three months of 2023, the company confirms the sales and earnings guidance issued on March 23, 2023.

For the financial year 2023, Group sales are expected to be at the prior-year level and  EBITDApre between €160 - 180 million. Taking into account depreciation and amortization, EBITpre is forecast to be between €100 - 120 million. Furthermore, free cash flow at the end of fiscal 2023 is expected to be at the prior-year level and return on capital employed (ROCE) between 10% and 12%.

Renewcell is the recepient of the Fast Company 2023 World Changing Ideas Awards for the Sustainability/Energy category with the development of recycling unused textiles into pulp, branded as CIRCULOSE®, used for man-made cellulosic fiber production of viscose, modal, lyocell, acetate and other fibers. Additionally Renewcell is recognized as a finalist in the Europe, the Middle East, and Africa category, as well as a finalist in the climate category for the 2023 World Changing Ideas Awards.

World Changing Ideas Awards honor sustainable designs, innovative products, bold social initiatives, and other creative projects that are changing the way we work, live, and interact with the world.

This year’s World Changing Ideas Awards showcase 45 winners, 216 finalists, and more than 300 honorable mentions—with health, climate, energy, and AI among the most popular categories. A panel of Fast Company editors and reporters selected winners and finalists from a pool of more than 2,200 entries across urban design, education, nature, politics, technology, corporate social responsibility, and more. Several new categories were added this year including rapid response, crypto and blockchain, agriculture, and workplace. The 2023 awards feature entries from across the globe, from Italy to Singapore to New Zealand. Fast Company’s Spring 2023 issue (on newsstands May 9, 2023) will showcase some of the world’s most inventive entrepreneurs and forward-thinking companies that are actively tackling global challenges.

Around EUR 355 million in overall turnover, 350 extruders delivered creating an additional recycling capacity for 1.6 million tons of recycled pellets as a result - these are the figures with which the EREMA Group was able to close the 2022/23 financial year in March.

"With demand for recycled plastics remaining high, the past financial year brought many challenges that we needed to handle," says Manfred Hackl, CEO of EREMA Group GmbH. The challenges included persistent delays in the supply chain and unexpected supplier outages. Logistics and production processes had to be adapted several times as a result. The situation has improved significantly meantime as a result of these measures and more stable supply chains.

The production locations in Austria manufactured 270 extruders and delivered them to customers around the globe. Taking the whole group into consideration, this figure rises to 350 including the extruders from PLASMAC, the Italian subsidiary. The recycled pellet production capacity of all extrusion systems delivered in financial year 2022/23 adds up to around 1.6 million tonnes per year. On top of that there are around 130 additional components and modules such as filter systems and ReFresher anti-odour units.

Recycling innovations for high-quality pellets
K 2022 - the highlight trade fair of the past financial year - saw the EREMA Group launch seven
new recycling systems and components. These included the new INTAREMA® TVEplus® DuaFil® Compact recycling system and the EcoGentle® plasticising unit, which was also newly developed. Thanks to their gentle polymer treatment and significantly lower melt temperature, both extrusion innovations deliver effective advantages in terms of the quality of the melt, recycled pellets, and final product, as well as impressive energy efficiency in post consumer and PET recycling applications. The significance of these innovations for plastics recycling is underlined by the nomination of the DuaFil® Compact technology for one of this year's Plastics Recycling Awards Europe in the category Recycling Machinery Innovation of the Year.
The same applies to the READYMAC 1109 TVE machine made to stock by EREMA Group subsidiary UMAC, as well as to the new ALPHA XS edge trim recycling machine for the inhouse recycling segment made by PLASMAC. The market launch of the deinking system presented at K 2022 by the EREMA Group company KEYCYCLE delivering a throughput of 1,200 kilograms per hour has been a success, as has the commissioning of a further unit sold to a film manufacturer.

40 years of EREMA
The beginning of the new financial year falls almost to the day on EREMA's 40th anniversary. On 14 April 1983, Helmut Bacher, Helmuth Schulz and Georg Wendelin founded EREMA Engineering Recycling Maschinen und Anlagen GesmbH, laying the foundation for the 40-year success story. In celebration, the comapny will hold the event EREMA Discovery Day at the company headquarters on the 1st of June. This event with live insights into the latest post consumer and PET recycling technologies will also see the official opening of the newly built research and development centre.

DyStar announces the plan to restructure its Ludwigshafen facility located in Germany. The strategic decision is made by the company in response to changing business conditions and market shifts.

Mr. Xu Yalin, Managing Director, and President of DyStar Group said, “This is an important strategic move for DyStar. We will focus on developing key emerging markets, which have been shifting over a decade. In the wake of higher energy costs and inflation, DyStar is determined to further improve cost efficiency and drive sustainable productivity as we continue to deliver the highest quality of innovative products that support the global supply chain.”

Mr. Eric Hopmann, Chief Commercial Officer of DyStar Group said, “The restructuring of this facility will be carried out in a phased manner. DyStar will diversify the production activity out of Europe and start with the reduction of manpower as a consequence. DyStar’s customers can be further assured of undisrupted supply, hence their production should not be affected as we will work closely to meet their specific requirements.”

The facility has been an integral part of DyStar’s global network. DyStar inherited this facility from their founders who started the Indigo research and manufacturing more than 125 years ago.

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

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

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

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

Yanfeng has reached another milestone in its sustainability journey by bringing the power of solar energy to its plants in South Africa. The global automotive supplier already uses renewable energy at all its locations in Europe – some of which are already operating with 100% green energy – and now will supplement its operations in South Africa with sustainable and emission-free solar energy generation.

Many sectors are facing major challenges with the transition to a low-carbon economy. The automotive sector in particular faces many operational and economic challenges when transforming production plants into net-zero emission operations. Thanks to its commitment to sustainability, 100% of the solar energy generated by the PV systems is used to power Yanfeng’s production plants in South Africa, helping them save around 2,559 tons of CO2 annually while reducing their monthly costs and increasing efficiencies.

The solar energy systems were funded by SolarAfrica, which will also operate, maintain and monitor the systems going forward. “From the outset of these projects, Yanfeng’s focus was on reducing their CO2 emissions and SolarAfrica is proud to partner with them to make their journey towards sustainability a success,” said David McDonald, CEO of SolarAfrica. “It’s inspiring to see a global company like Yanfeng invest in world-class facilities in South Africa, contributing to our country’s green economy and supporting job creation in the automotive industry.”
 
All Yanfeng European plants were converted to renewable energy by the beginning of 2022. With this new PV system, Yanfeng has implemented a milestone in the conversion to net-zero emission production at its two plants in South Africa.

Carbios, a compnay in the development and industrialization of biological technologies for reinventing the life cycle of plastics and textiles, announces its operating and financial results for the year 2022. The financial statements as of December 31, 2022, were approved by the Company’s Board of Directors at their meeting on April 5, 2023.

• Project to build, in France, the world’s first PET biorecycling plant: Progress in line with 2025 unit commissioning target6
• Excellent results from the demonstration plant validating the industrial scale-up of Carbios technology
• Carbios licensing documentation ready for worldwide industrial and commercial deployment
• Long-term exclusive strategic partnership with Novozymes to ensure supply of enzymes at industrial scale for the Reference Unit and all future licensee plants
• Creation of fiber-to-fiber consortium with On, Patagonia, Puma, PVH Corp., and Salomon
• CE-PET research project successfully completed
• Participation in WhiteCycle project co-funded by Horizon Europe and coordinated by Michelin
• Publication of scientific articles in the prestigious Biophysical Journal and in Chemical Reviews
• Carbios hosts world’s first PET Biorecycling Summit
• Carbios publishes first Sustainability Report and outlines objectives for environmental, social and governance (ESG) initiatives
• Carbios joins Ellen MacArthur Foundation’s circular economy network
• €30 million European Investment Bank loan drawn down in 2022
• Group’s cash position of €101 million as of December 31, 2022

In recognition of his extraordinary engineering achievements in the fields of textile mechanical engineering, textile technology as well as textile chemistry and surface modification of textile semi-finished products, Prof. Paul Kiekens was awarded the title of Doctor honoris causa (Dr.-Ing. h.c.) on April 5, 2023.
 
Prof. Kiekens was a university professor at Ghent University, Belgium, for almost 35 years and thus responsible for textile-oriented education and research. Intensive interaction with European business and science was always particularly important to him.
 
Immediately after the fall of the Berlin Wall, he opened the way for international cooperation in teaching and research in the field of textile mechanical engineering, textile technologies, and textile chemistry for the only Eastern European university research institution with a textile orientation, the ITM (formerly ITB) at the Faculty of Mechanical Engineering of TU Dresden, and provided great and uncomplicated support. A close, lasting and intensive relationship developed, which had a trend-setting influence on the scientific career of Professor Paul Kiekens. This was reflected above all in the expert advice given for major projects.
 
These include, for example, the funded junior research group "Holistic approach to the development and modelling of a new generation of multiaxial fabrics for fibre composites to strengthen Saxon, French and Flemish industry in the high-performance sector" (SAXOMAX) and jointly acquiring the EU project "Large scale manufacturing technology for high performance lightweight 3D multifunctional composites" (3D-LightTrans). Especially in these large-scale projects, intensive cooperation with industrial partners was essential for success.
 
As early as the 1990s, Professor Paul Kiekens had the vision of creating a European network for universities in textile teaching and research. In 1994, the Association of Universities for Textiles (AUTEX) was founded with the aim of establishing teaching and research in the field of textile technology at an internationally respected level through joint concepts. Due to the prevailing cooperation at that time between Professor Dr. Paul Kiekens and Professor Dr. Peter Offermann, the TU Dresden, represented by the ITM (formerly ITB), has been a full member and decisively integrated in the network since its foundation on July 1, 1994. Thus Prof. Dr.-Ing. habil. Paul Kiekens has significantly promoted the international cooperation of the TU Dresden, Faculty of Mechanical Engineering with international university textile research institutions.
 
Professor Paul Kiekens was executive coordinator of AUTEX until his retirement. The internationally renowned symposium takes place annually as a part of AUTEX.