From the Sector

• Challenging market environment due to low prices for standard viscose, less favorable exchange rates and higher raw material and energy prices
• Very positive development of specialty fiber business with revenue share exceeding 45 percent
• Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
• Results for 2019 expected at about the level of 2018 despite a significantly more demanding market environment

The Lenzing Group’s business developed well in the 2018 financial year. A significantly more challenging market environment led to a decline in revenue as well as earnings compared with the record results of the previous year. This was primarily caused by lower selling prices for standard viscose, exchange rate effects as well as higher raw material and energy costs.

Group revenue declined by 3.7 percent compared with the previous year to EUR 2.18 bn. The predicted challenging market environment for standard viscose, plus less favorable exchange rates and a slight decline in sales volume were the key contributing factors. EBITDA (earnings before interest, tax, depreciation and amortization) was down by 24 percent to EUR 382 million due to price increases for key raw materials and higher energy and personnel costs. The EBITDA margin dropped from 22.2 percent in the 2017 financial year to 17.6 percent in the reporting year. EBIT (earnings before interest and tax) fell by 36 percent to EUR 237.6 mn, leading to a lower EBIT margin of 10.9 percent (2017: 16.4 percent). Net profit for the year after one-off effects dropped by 47.4 percent from EUR 281.7 mn in the previous year to EUR 148.2 mn. Earnings per share equaled EUR 5.61 (2017: EUR 10.47).

The Management Board and the Supervisory Board will propose a stable dividend of EUR 3.00 per share plus a special dividend of EUR 2.00 per share at the upcoming Annual General Meeting. In total, the paid dividend will amount to EUR 5.00 per share, corresponding to a dividend payment to shareholders of roughly EUR 133 mn.

JEC WORLD 2019 is turning Paris into the composites capital of the world.

As well as dozens of conferences, composites circles and live demos, plus hundreds of other events, the first day of the show was marked by the announcement of the three winners of the largest international startup competition in the composites field!

In the last three years, 270 projects have been picked out from over 30 countries, with 30 finalists and a total of nine winners.

THREE WINNERS
Ten finalists selected from 120 entries pitched to an international jury. The pitch session opened with an inspiring speech by Enrico Palermo, President of The Spaceship Company. He introduced the next generation of reusable space vehicles and their impact on costs, safety and the environment during the launch into space.
The programme incited enthusiasm from Peter Hopwood, founder of Hopwood Communications, who encouraged the finalists to develop their stage presence and galvanise their pitches.

At the afternoon’s award ceremony, three competitors were selected for the following prizes:

AIRGO DESIGN (Singapore)
World's first full composite economy class passenger seat developer.
www.airgodesign.com

AREVO (USA)
Delivering the future of composite manufacturing today through breakthrough advancements in software, materials, and robotics. Through enabling the 3D printing of large, mass-produced parts and structures, AREVO is revolutionizing mainstream manufacturing and the global supply chain.
www.arevo.com

WOODOO (France)
Augmented wood.
https://woodoo.fr

The public vote: LAVOISIER COMPOSITES (France)
New generation of material entirely sourced from the French aerospace transformation sector.
www.lavoisier-composites.com

Composite reinforcement specialist Chomarat will exhibit its latest woven and multiaxial carbon fibre reinforcements at JEC World 2019. "Prepregs are used in the most demanding markets, such as aerospace or the automotive industry. Due to their high performance, Chomarat’s carbon fabrics are highly considered by prepreggers. Compared to standard solutions, the multiaxial reinforcements developed by the group offer Chomarat’s converter customers significant productivity gains. With its production sites in France, Asia and the United States, Chomarat is able to supply its customers and guarantee the same high level of quality in all countries," explains Group Managing Director Michel Cognet.

C-WEAVE™ - THE QUALITY AND RELIABILITY BENCHMARK
In just a few years, prepreggers have come to consider Chomarat's C-WEAVE™ carbon-fibre fabrics as a benchmark for surface-finish quality and processability.
The reinforcement contributes to productivity and reliability during the prepregging process. Helen Doughty, Director at SHD Composites, testifies: “The consistent high quality of C-WEAVE™ has been a key part of SHD Composite Materials continued success and growth.”
"Prepreg users often manufacture Class A surface parts for demanding applications, and they need excellence and reproducibility," explains Chomarat’s Prepreg Market Manager Ulrike Salmon.

C-PLY™: GOING FURTHER WITH CARBON MULTIAXIALS
The advantages of multi-axial reinforcements are now well established - oriented axes, absence of resin-rich areas allowing a high fibre content, and improved mechanical tensile and/or bending performance thanks to the non-crimp fibres.
By developing its C-PLY™ range, Chomarat further demonstrates that multiaxials are a real asset in terms of performance and appearance. "Chomarat strives to minimize marking on parts and to optimize surface quality through fibre spreading and the use of suitable stitches. C-PLY™ can also integrate aesthetic functions by using the assembly seam as a graphic design", continues Ulrike Salmon.
These new advantages are important for the automotive, sports-equipment and consumer-electronics markets, which seek to combine premium quality and productivity.

ROICA™ discloses five key and influencing brands with unique outfits already available in the market, that demonstrate how ROICA™ is able to deliver and transform basic performant stretch in eco hi-tech valuable innovations interpreted in five, completely different, contemporary lifestyles!

Inspired by the need for style-conscious, sustainable garments that are versatile for every life situation, AEANCE was created as a brand that merges ready-to-wear with technical apparel. The brand`s values are timeless minimalism, substance and understated luxury. Less, but better. AEANCE is committed to creating garments with the least possible impact on the environment and has set up a supply chain focusing on eco-sustainability and ethical responsibility. The Women`s Light Padded Jacket of the look selected for ISPO is the result of a collaboration with the acclaimed industrial designer Konstantin Grcic.

Knowing the transformative power of fitness, DAQUÏNI® was founded in 2012 to help women bridge the gap between how they feel and how they think they look when they are working out. Each DAQUÏNI® item is made in the E.U. from highest quality Oeko-Tex® certified materials. The brand’s first choice in fabrics is SOFILETA (founded in 1911) with its luxurious technical fabrics with ROICA™ V550 premium stretch awarded with Cradle-to-Cradle Innovation Institute’s GOLD LEVEL material health certificate.

The New York based brand Erin Snow creates chemically safe, circularly designed, socially fair luxury performance apparel. The Teri pant is Erin Snow's most innovative and highly anticipated pant to date. Teri is made from the finest bluesign® approved Schoeller 4-way stretch fabric containing ROICA™ V550 premium stretch sustainable fiber. The pant is insulated with PrimaLoft® Gold Luxe and repels water and dirt without PFCs, thanks to Schoeller's ecorepel® Bio finishing while giving maximum freedom of movement.

The SCOTT Racing Team, the Italian Mtb Pro Rider Team born in 1988, selected the high performance for active clothing identifying Rosti, SITIP and ROICA™ as strategic partners to ensure unique and performant biking outfit composed by tights and jacket. Made with the special BEHOT fabric by SITIP, constructed with active performance materials belonging to the ROICA Feel Good™ family, it not only insulates, but generates up to 2 degrees of heat as you workout as certified by CeRism, Outdoor Sport Research Centre at Verona University. Long life stretch, superior shape retention and best breathability thanks to the Blizzard by SITIP fabric that ensures thermal comfort and easy care to the users. A valuable choice that perfectly matches the performances of an experienced team of specialists.

SITA hits the European panorama for the first time at ISPO with ROICA™ few days after the official launch in US and Saudi Arabia on January 31st. Its high-tech debut collection for Spring 2019 provides women with an all-new luxury concept of timeless foundational apparel made in New York balancing concealed performance features and style to meet womens’everyday dynamic lifestyle. The newly-created made in Italy SITATECH™ fabric includes permanent agents that neutralize odor, withstand machine wash, and exhibit superior quality. The intricately designed fabric takes on instant appeal with nanotechnology fibers and ROICA™ CF, a yarn with an active smart odor neutralizer property, then knitted in Italy by Maglificio Ripa.

TINTEX Textiles presents new exemplary concepts based on a continuous textile research for responsible, ethical-minded fashions. It is born out of heritage and passion to use only good materials and the finest finishing techniques for better textiles in the best spirit of its unique Portuguese culture.

The new S/S 2020 collection starts from the concept of “UNO”: a full Naturally Advanced offer that is gathered together under one emblematic cultural standard, one that refers to unity as a result of the revolutionary generation in a society that embraces uniqueness and differentiation. UNO stands for unification, cross-fertilization, inclusion, just like an orchestra playing in concert with the same purpose. It is the perfect chance to discover a range of unique developments that truly embody the company’s identity, balancing responsible innovation and creativity. Smart ingredients take the lead being enhanced by the TINTEX unique dyeing and finishing expertise.

Starting from the “UNO is…embrace yourself” concept, a unique range of natural fibres are blended with technical qualities for new levels of wellbeing performance. Shirt structures, timeless jerseys and interlocks are born from the transformed polyamide Q-NOVA® by Fulgar with excellent moisture control, and from SeaCell™, that embodies the unique properties of seaweed combined with the unique ROICA™ CF (Clean Fit), a unique odor neutralizing premium stretch yarn by Asahi Kasei.

Michelman, a global developer and manufacturer of environmentally friendly advanced materials, including sizing for glass and carbon fiber, has invested in the FIMATEST adhesion measurement system to ensure their sizing solutions continue to contribute to enhanced performance of composite parts.

“As we continue our vision to be the interface expert, it is critical to have analytical equipment that can efficiently fine-tune our sizing to optimize adhesion properties. This is one of the key performance attributes we provide our customers, and the fact that the Textechno FIMATEST system works according to the fiber pull-out principle makes it extremely valuable”, explains Steve Bassetti, Michelman’s Global Marketing Director for Industrial Manufacturing. “We have utilized this equipment in our development lab for almost two years, and it is suited for any fiber-matrix combination we have developed. It has been helpful that Textechno developed these instruments because they are, and will continue to be, a great benefit to the entire Composites industry. We look forward to supporting Textechno in establishing more standardization for the Industry regarding fiber-matrix-adhesion and processing properties.“

Dr. Ulrich Mörschel, CEO of Textechno, added: “We are proud that Michelman, the industry’s leading interface expert, invested in our testing system.” Bassetti further elaborated on the system’s benefits: “For Michelman’s customers, this equipment has allowed for great collaboration, increased screening of sizing concepts, and a more robust and efficient product development process.”

Hexcel is exhibiting at the Aero India show for the sixth time, continuing to support customers in the Indian subcontinent and throughout Asia. This year’s show takes place in Bangalore from February 20-24 (Stand AB2.5D, Hall AB) to promote a range of carbon fibers and composites that are benefiting Indian aerospace manufacturers for commercial aircraft, helicopters and space programs.

To coincide with the show, Hexcel is announcing the opening of its new sales office, Hexcel Composites India LLP. The office is located in Bangalore and will be fully operational in March 2019. Mr Vijay Sharma, Sales Manager, and Mr Ram Kumar, Technical Representative, will manage the sales activities and support key customers in the region.

Hexcel has supplied carbon and glass fiber fabrics, prepregs, honeycombs and adhesives to Indian aerospace companies for more than 28 years, including Hindustan Aeronautics Ltd (HAL), National Aerospace Lab (NAL), Indian Space Research Organisation (ISRO), Vikram Sarabhai Space Centre (VSSC) and TATA Advanced Materials.

Hexcel’s high strength and intermediate modulus carbon fiber range has been augmented by the launch of HexTow® HM63, a high modulus carbon fiber that has the highest tensile strength of any existing HM fiber. HexTow® HM63 provides outstanding translation of fiber properties in a composite, including superior inter-laminar shear and compression shear strength. HexTow® HM63 is therefore ideal for any high stiffness and strength-critical applications including space, satellites, UAV, commercial aerospace and helicopters.

Chomarat, a leader in technical textiles and composite reinforcements, is developing its Coatings & Films business at its French sites. The Group has just acquired an extruder and a graining line to increase its production capacities and develop new, more efficient solutions, particularly in the field of TPO (polyolefin thermoplastics). These two technological investments are part of the €35 million investment plan announced by the Group in mid-2017.

AN EXPANDED OFFER WITH THE NEW GRAINING LINE
The graining line gives texture to the coated textile and provides a differentiation of appearance or a functionalization, such as non-slip or durability. "We will use this new technology to broaden the scope of material we process (including the production of TPO sheets with or without backing), and to improve the perceived quality by a better grain definition," explains Philippe Chomarat, Director of the Coatings & Films business at Chomarat. This technological investment enables the Group to increase its production capacities and offer new solutions for the automotive and luxury bag markets.

INCREASING PERFORMANCE WITH THE NEW EXTRUDER
The new extruder increases the Chomarat production capacity for coated textiles and allows production in larger widths. The technology consumes less energy and emits very low level of VOCs, in line with the Group's sustainable approach. It also supplements existing solutions for developing biosourced coated fabrics. "This is a strategic investment for Chomarat, as in addition to PVC, we will be able to work with new materials such as TPO, TPU and new biosourced materials. We will offer innovative solutions for all our markets—pipes, luxury bag, automotive and protection," concludes Philippe Chomarat.

The international home textiles industry has enjoyed a promising start at Heimtextil in Frankfurt am Main, which finished Friday, 11 January. The challenging economic situation and uncertainty in the retail sector were countered by a positive and confident mood at the world’s leading trade fair.

3025 exhibitors from 65 countries* took the international trade fair for home and contract textiles to a 15-year high: ‘Exhibitors and visitors accepted the new trade fair concept with great enthusiasm and confirmed the trade fair’s position as the world’s most important meeting place for the industry. The quality of the decision-makers impressed the exhibitors, as did the number of new business contacts from 156 countries, especially international ones – thus enabling Heimtextil to set a new benchmark’, says Detlef Braun, Member of the Board of Management of Messe Frankfurt. ‘Around 67,500 visitors* ensured that there was a busy atmosphere in the halls, despite a slight decline due to various reasons, such as difficult travel conditions on account of the storms in the alpine region and airport strikes in Germany’. [*For comparison, 2018: 2,975 exhibitors from 64 countries; 68,584 visitors from 135 countries, FKM-tested)]

3025 exhibitors from 65 countries* took the international trade fair for home and contract textiles to a 15-year high: ‘Exhibitors and visitors accepted the new trade fair concept with great enthusiasm and confirmed the trade fair’s position as the world’s most important meeting place for the industry. The quality of the decision-makers impressed the exhibitors, as did the number of new business contacts from 156 countries, especially international ones – thus enabling Heimtextil to set a new benchmark’, says Detlef Braun, Member of the Board of Management of Messe Frankfurt. ‘Around 67,500 visitors* ensured that there was a busy atmosphere in the halls, despite a slight decline due to various reasons, such as difficult travel conditions on account of the storms in the alpine region and airport strikes in Germany’.

One topic that occupied both exhibitors and visitors was the current and future economic situation. A further challenge is the increasingly evident changes that are happening in trade. Increasing revenues and revenue shares in online retailing stand in the way of the efforts made by the stationary retail trade to maintain their inner-city businesses. ‘The small business specialist trade, but also department stores and multibrand stores, and thus the heart of our visitor target groups, are under pressure from the constantly increasing levels of e-commerce. With Heimtextil and our consumer goods fairs in general, we offer these retailers in particular clear perspectives and diverse inspiration in an ambiguous world’, continues Braun.

Heimtextil made it easier for its visitors to access valuable inspiration and business momentum thanks to an optimised trade fair concept and the associated new hall structure. ‘The new concept brought more visitors to the stand’, was the feedback from Andreas Klenk, Managing Director of Saum & Viebahn from Kulmbach in Franconia about hall 8.0 which offered textiles editeurs and manufacturers of curtain and sun protection systems a common platform for the first time. ‘It was the right decision to merge the different segments. We had high quality discussions with respect to both export and domestic business, and are satisfied with the trade fair’.

As part of the new concept, Heimtextil expanded its unique product range across the entire exhibition site and also included the new hall 12, which has been an additional architectural highlight on the Frankfurt exhibition grounds since September.

Top international companies from the Bed & Bath Fashion segment presented their wares here. For the company Curt Bauer from Aue in Saxony, the première of the new hall was a successful one. ‘We're very enthusiastic about the new hall 12. The product range there was very well received. We are very satisfied with the quality of visitors to our stand. In addition to a good frequency of German visitors, we are particularly pleased about growth from China and Russia’, says Managing Director Michael Bauer.

Natural materials, PET and ocean plastics 
Heimtextil set a standard in terms of sustainability: after the first global climate protection agreement for the textile industry was signed by 40 leading fashion companies, organisations and associations at the World Climate Conference in Katowice last December, the focus in Frankfurt was also on environmental progress in the textile industry. Numerous exhibitors presented progressive solutions, for example in the recycling of PET bottles and ocean plastic as well as in the use of certified natural materials. ‘Sustainability was the theme for us at this year’s Heimtextil. Major media players visited us and the 'Green Tour’ guided tour stopped by. We presented many things, including our first vegan duvet and fair silk products, all 100 per cent produced in Austria’, says Denise Hartmann, Marketing Manager at Hefel Textil. The topics of water consumption in the textile industry and microplastics also increasingly came to the fore. The exhibitor directory ‘Green Directory’ alone contained around 150 progressive companies listing sustainably produced textiles. The offer was supplemented by its own lecture series as well as theme-specific tours, which provided valuable impetus and
underpinned the pioneering green position of the trade fair.

Sleep becomes new lifestyle theme
Heimtextil also focused on sleep as one of the upcoming lifestyle trends. While a balanced diet and sufficient exercise are now a natural part of a healthy lifestyle, restorative sleep is still neglected* although it is one of the most important building blocks for long-term physical and mental well-being. At Heimtextil, a number of new products and aspects came to the fore that help people become sensitised to and analyse their sleep behaviour and promote healthy sleep. Around the redesigned hall 11.0 and in the adjoining lecture area ‘Sleep! The Future Forum’, representatives from the national and international bed industry enjoyed attractive product presentations and superb speeches on the topics of sustainability, hospitality, sport and digital.

In addition to the renowned trend show, the trade fair also focused on contract business, particularly in the hotel and hospitality sector, as well as decorative and upholstery fabrics, digital printing solutions and wallpapers.

The next Heimtextil in Frankfurt am Main – its 50th edition – will take place from 7 to 10 January 2020.

*According to a forsa investigation commissioned by the Techniker Krankenkasse

Archroma, a global leader in color and specialty chemicals towards sustainable solutions, today announced that Thailand-based Absolute Denim will be the first denim manufacturer to switch 100% of its production to aniline-free* indigo dyeing.

Absolute Denim is a Thailand-based denim manufacturer producing high quality denim with a focus on eco-friendlier materials and processes. The company can produce up to 2 million meters of denim per month (that's approximately 1.5 million pairs of jeans!), for customers that include some of the biggest brands and retailers in the world.

Archroma’s Denisol® Pure Indigo 30 liquid dye was first launched in May 2018 as a non-toxic way to produce the traditional, iconic indigo blue that consumers associate with denim and jeans.

During production, some of the aniline stays locked into the indigo pigment and is difficult to wash off the fabric. The remainder of the aniline impurity, approximately 300 metric tons annually, is discharged during dyeing. This can be an issue as aniline is toxic to aquatic life. In addition, exposure levels to factory workers can be high. As a result of its toxicity (more hazardous than alkylphenols) it is now starting to feature on the restricted substance lists (RSL) of some major clothing brands and retailers.

The new Denisol® Pure Indigo 30 liq was therefore developed as an aniline-free* indigo solution for designers, manufacturers and brand owners who long for authentic indigo inspiration.

Archroma tested Denisol® Pure Indigo at Absolute Denim mill in Thailand. Archroma wanted to be sure that the new indigo dye would perform exactly the same as conventional indigo.

James Carnahan, Head of Sustainability at Archroma, comments: “At Archroma we continuously challenge the status quo in the deep belief that we can make our industry sustainable - but we cannot do it alone. Without forward-thinking manufacturers such as Absolute Denim to consciously adopt these eco-advanced innovations in their daily production, like our aniline-free* Denisol® Pure Indigo, we will not be able to move this industry forward on our resource-constrained world we live in. As consumers are increasingly aware of, and concerned about, climate change and ecological threats, this is not only the right thing to do - it is also good for business.”

“Deep down inside most of us want the world to be a better place for our loved ones and for future generations,” insists Vichai Phromvanich, Board Member, Absolute Denim, “starting with how we live, what we eat, what we wear, still trying to be cool, fashionable, still trying to be environmentally conscious. Archroma’s aniline free indigo project is therefore something we as a new generation manufacturer have supported from the beginning, by opening our doors for tests in the project phase, and now by sending out our articles to many of our customers. For us, after all, a nice pair of jeans looks even nicer without aniline!”

* Below limits of detection