From the Sector

The acquisition of the automotive business of Borgers, announced in January 2023, has been completed with effect from April 1, 2023, following receipt of all antitrust approvals. As a result, Autoneum now operates 67 production facilities worldwide and employs around 16 100 people in 24 countries. With the acquisition of the long-established German company, Autoneum is further expanding its global market leadership in sustainable acoustic and thermal management of vehicles. For the planned capital increase of around CHF 100 million for the long-term financing of the acquisition, the shareholders approved the creation of a capital band.

The purchase agreement signed on January 6, 2023, to acquire the assets of the insolvent Borgers companies by Autoneum could be completed. As a result, Autoneum will take over the assets of the Borgers companies in Germany and the shares in the subsidiaries in France, Poland, Sweden, Spain, the Czech Republic, the United Kingdom and the USA as well as in the company in Shanghai, China, with effect from April 1, 2023. As already communicated, the enterprise value paid amounts to EUR 117 million.

The product and customer range of Borgers Automotive, the specialist for textile acoustics protection, insulation and trim for vehicles, ideally complements Autoneum’s sustainable product portfolio. Particularly with the wheel arch liner and trunk lining product lines as well as the truck business, Autoneum’s global presence offers further potential for profitable growth also outside Europe. In addition, Borgers has more than 150 years of experience in recycling textile materials. In the 2022 financial year, the Borgers Group – excluding the mechanical engineering division which was already sold in the summer of 2022 – generated expected annual revenue of around EUR 700 million and employed around 4 500 employees worldwide. Autoneum has agreed new pricing and delivery terms with Borgers’ customers, which will ensure both sustainable profitability and the further development of technologies and processes.

From April 1, the former Borgers sites in Germany will be part of Autoneum Germany GmbH, which has been in existence for many years. The other subsidiaries worldwide will gradually be renamed Autoneum.

EURATEX has just released its Spring report, offering a detailed insight into trade figures for the European textile and apparel industry in 2021. The numbers are encouraging: comparing with the dramatic corona-year 2020, EU exports of textile and clothing articles increased by +10.6%, while imports dipped by -7.5%. As a result, the EU trade deficit improved, even it remains significant (- €48 billion).

Furthermore, import prices went slightly down in clothing and dropped in textiles, following a strong decrease of Chinese import prices of face masks and protective medical supplies.

The boost in exports was mainly due to strong performance on the Swiss, Chinese and US markets. On the other side, EU sales of textile & clothing to the United Kingdom fell sharply (-23%), due to Brexit new requirements, customs’ delays and shortage of truck drivers.  Imports from the EU top supplier, China, plunged by -28%, corresponding to €13 billion. Similarly, textile and clothing imports from the United Kingdom recorded a sharp decrease over the period (-48%, equal to €-3 billion).

Director General Dirk Vantyghem commented: “the 2021 export figures, presented in this Spring report, confirm that EURATEX members have gained momentum; even if energy prices are causing some serious short-term disruptions, our long-term ambition remains to be a world leader on sustainable textiles.”

The international trade dimension is indeed critical for the competitiveness of the European textile ecosystem, and needs to be fully embedded in the EU’s Strategy for Sustainable and Circular Textiles. The Commission insists that “all textile products placed on the EU market, are durable, free of hazardous substances, produced respecting social standards…” This is an essential condition to create a level playing field between all textile and apparel companies, regardless of their production base. With €100 billion of imports, and over 20 billion of “foreign” textile items put on the Single Market, this requires a dramatic upscaling of market surveillance, without however disrupting fluid supply chains.

Looking at the impact of war in Ukraine, EURATEX has strongly condemned the Russian aggression, and offered support to the Ukrainian textile industry. Ukraine offers valuable sourcing opportunities for European textile and apparel brands, as part of a broader nearshoring trend, which seems to emerge from the trade figures.

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.

Lectra brings together partnership schools and industry experts to discuss how changing professions
in fashion are impacting training programs

Lectra, the world leader in integrated technology solutions dedicated to industries using fabrics, leather,
technical textiles and composite materials, recently welcomed partners from the world of
education to the company’s Bordeaux-Cestas campus for its eighth education congress. The
event was dedicated to the mega trends shaping the fashion industry and impacting
professions from design to production.

Over fifty representatives from among the most important fashion schools in Germany, Canada, China,
USA, France, Hong Kong, Italy, The Netherlands, Poland, United Kingdom, Switzerland and Sweden, participated
in this biannual meeting between industry experts and teaching professionals.

Fashion professions are evolving as companies make their first steps towards Industry 4.0, adopting 3D
and rationalizing the lifecycle management for their collections thanks to PLM. Lectra’s congress enabled
schools to discuss the developing role of designers and patternmakers, and the new elements to be
integrated into training programs.

Lectra illustrated future changes through presentations on design, patternmaking, 3D prototyping, and PLM.
“It is fundamental to bring innovation experts in the industry together with fashion schools, because
students will drive the evolution of this industry,” stated Pascal Denizart, Managing Director of the Centre
européen des textiles innovants (CETI).

Working with schools to design courses which meet the needs of fashion companies has always been at
the heart of Lectra’s education program. During the event, the company presented collaborative
experiences between partner schools and fashion brands, such as the competitions organised by Lectra
with Missoni, Balenciaga, and Armani in Italy, as well as Peacebird in China and JC Penney in the United
States.

In the United Kingdom, Lectra collaborated with COS (H&M group) and the Arts University Bournemouth
(AUB) for a competition centred on the design of a collection with zero waste.
“The process was totally digital, from design to the creation of a virtual prototype in 3D. Our students learnt
to optimize each stage of the process. By leveraging the use of Kaledo®, Modaris® and Diamino®, the
collaborative work between AUB, COS and Lectra is exactly the type of project that enormously motivates
our students. Live briefs developed with leading fashion brands and Lectra offer excellent opportunities
which directly inform industry currency and student employability,” explained Penny Norman, a lecturer at
AUB.

The event also shone the spotlight on China and its major role in the evolution of the fashion industry.
Li Min, Vice-Dean of the fashion and design faculty at Donghua university in Shanghai spoke of the event,
organized by Lectra, which brought together major Chinese companies, experts, and representatives from
the biggest schools in China.

“Exchanges on the impact of the Made in China 2025 plan on the fashion industry can better prepare
students for tomorrow’s professions, where digital and automation will occupy a far more central position
than today,” testified Li Min.

"The fashion industry is evolving so fast that sharing insights and best practices with experts and other
fashion schools has become vital to ensure we offer the best learning experience and technology tools to
our students", said Dr. Trevor J. Little, Professor of Textile and Apparel, Technology and Management in
the College of Textiles at NC State University.

“Lectra’s eighth education congress confirms the company’s commitment to our partner schools. We
shared our analysis of the market, the digitalization of the eco-system, and how Industry 4.0 principles can
be applied to the fashion industry. We also discussed mass customization and the role of PLM. While these
are key subjects for our customers, many schools are only now approaching them. We are preparing
tomorrow, today: Lectra is supporting our customers, and schools to play an essential role,” concludes
Céline Choussy Bedouet, Chief Marketing and Communications Officer, Lectra.