From the Sector

• Strategy and purpose affirm Borealis Group vision to be a global leader in advanced and sustainable chemicals and material solutions
• Sustainability at the centre of all activities, supporting OMV Group’s ambition for a net zero business by 2050
• Strong foundation supports continued geographic expansion with enhanced focus on Middle East and Asia, North America

Borealis announces the introduction of the Borealis Strategy 2030. At the core of this strategic evolution is sustainability, which is supported by the Borealis foundation of dedication to safety first, its people, innovation and technology, and performance excellence. This foundation powers continued geographic expansion and the ongoing transformation towards the circular economy. The strategy stipulates new and more ambitious sustainability targets with regard to greenhouse gas (GHG) emissions reductions, energy consumption, and the circular economy. Underlying the Borealis Strategy 2030 is an evolved purpose, “Re-inventing Essentials for Sustainable Living,” whose intent and spirit is shared across the OMV Group.*

* See attached document for more information.

The worldwide leading textile processing standard for organic fibres, Global Organic Textile Standard (GOTS), seeks public input as it begins the revision process for GOTS standard version 7.0.

As a solution for sustainability-related challenges in textile processing, GOTS sets strict and binding requirements regarding ecological and social parameters. These are updated every three years in an open and transparent revision process which fosters constant progress towards the development of better textile processing methods. In this process of continuous improvement, GOTS collaborates with all relevant international stakeholders, including the textile and apparel industry, chemical suppliers, organic farming and environmental organisations, workers' rights groups and labour unions, to ensure ongoing relevance and account for changes in the industry.

The initial period of public input runs from 14 April through 12 June. During this phase, all interested parties, including industry representatives, NGO’s and consumers, are encouraged to participate by submitting comments, feedback, and ideas through GOTS’s online portal.

“We are looking forward to receiving input from stakeholders around the world for GOTS version 7.0. This open call for feedback is part of what keeps our certification requirements up-to-date with the most cutting-edge developments in the industry,” says GOTS Managing Director Rahul Bhajekar.

Beginning in 2022, the revision process will follow the newly developed Standard Setting Procedure, which provides for the constitution of a Standard Revision Committee (SRC) for each revision. This group will serve as the pivotal force behind decisions about the revisions. The SRC consists of experts from different stakeholder groups, including associations, organisations, companies and individuals. All input received by June 12 will be carefully considered by the SRC as well as compiled and made public for an additional 30-day consultation period later this year. All drafts of the standard will also be made public. GOTS standard version 7.0 will be finalised in early 2023, and will be available on the GOTS website.

The timeline for the revision to GOTS version 7.0 is as follows:

1. Constitution of GOTS SRC- April 2022
2. Release of first revision draft for public consultation - 14 April 2022
3. First public consultation period - 60 days (April 14 to June 12)
4. Deliberations by the SRC on input received - May to August 2022
5. Release of second revision draft for public consultation - September 2022
6. Second public consultation period - 30 days from release
7. Deliberations by the SRC on input received - October to November 2022
8. Finalisation of GOTS version 7.0 - February 2023
9. Release of GOTS version 7.0 - March 2023

• Lenzing continues to march purposefully towards Group-wide climate neutrality
• Lenzing recognized as “sustainability champion” several times worldwide – one of only 14 companies awarded “AAA” rating by CDP
• New, innovative reporting methods – Lenzing presents its Online Sustainability Report for the first time
• Sustainability Report 2021 based on the results of the updated materiality analysis

Lenzing – The Lenzing Group, the world’s leading supplier of wood-based specialty fibers, released its Sustainability Report 2021 today, April 05, 2022, on the occasion of “Earth Month”. Bearing the title “Linear to Circular”, the report emphasizes the company’s focus on carefully balancing its needs with those of nature in the spirit of the circular economy. The report has been prepared in accordance with the standards of the Global Reporting Initiative (GRI) and the Austrian Sustainability and Diversity Improvement Act (NaDiVeG) and audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft.

The Lenzing Sustainability Report 2021 is available on the company website.

With new translucent paper Crystalcon, Sappi is adding another innovative product to its range of sustainable packaging papers. Used in combination with Sappi’s heat-sealable Seal Silk, the new paper delivers a recyclable, easy-to-implement packaging solution for a variety of food and non-food applications.

• Crystalcon’s translucence allows consumers a direct view of the package content
• No additional converting or finishing of the papers is required
• From confectionery to envelopes and magazines, this is a sustainable packaging solution suitable for both food and non-food applications

Manufacturers are currently facing twin challenges: consumers are increasingly demanding more sustainable packaging solutions, but they also want to be able to examine product contents when walking through supermarket aisles. Currently, film is often used in whole or in part for such packaging.

A sustainable packaging solution
The combination of Crystalcon with Sappi Seal Silk, from Sappi’s innovative Functional Paper Packaging division, offers a highly sustainable packaging solution. The Seal papers feature excellent heat-sealing properties and are recyclable through standard paper disposal systems. Meanwhile, the new translucent Crystalcon paper can be easily sealed onto Sappi Seal. The result is that this fast and sustainable packaging solution is well suited to both food and non-food applications.

Crystalcon is an uncoated, compostable translucent paper. Although not completely transparent, it allows sufficient visibility for consumers to examine the packaged product. From noodles and rice to magazines, viewing windows in envelopes or sales packaging for greeting cards, the possible applications are numerous.

The Spanish recycling company Anviplas has been involved in plastics recycling for more than 30 years, during which time it has built up extensive know-how that now benefits customers throughout Europe, in Africa and in Asia. Their cooperation with EREMA is almost as long. Since 1991, Anviplas has relied on the technology and service provided by the Austrian recycling machine manufacturer.

Employing 64 people, Anviplas recycles post-industrial and post-consumer plastic waste, especially HD and LD-PE as well as PP, to make recycled pellets in all colour variations. The production capacity is 1,800 tonnes per month. An EREMA type INTAREMA® 1716 TVEplus® recycling machine with screen changer is in operation at the site in Navarcles (Barcelona) for processing the PP material stream. This patented extruder system was developed for handling difficult-to-process materials, such as heavily printed films as well as very moist waste. This machine is characterised by its optimised 3-stage degassing system; firstly by preheating and predrying the material in the preconditioning unit, secondly because the screw design allows reverse degassing, and thirdly in the degassing zone of the extruder.

Anviplas customers manufacture a huge bandwidth of products made using their recycled pellets. They range from various film products, such as stretch, shrink, mulch and silage films, to irrigation, corrugated and high-pressure pipes, as well as containers such as tubs, bottles, barrels and crates.

In February 2022 the Repeats Group, a pan-European platform for LDPE recycling, and Anviplas announced, that Repeats has made an investment in the Spanish recycling company. For Repeats this investment in Anviplas represents an important step in building a pan-European plastics recycling platform.

Sappi, a leading provider of sustainable woodfibre-based packaging materials, is expanding production of its successful Fusion Topliner grade to its flagship mill in Gratkorn, Austria. The Fusion Topliner – a white virgin fibre liner for high-quality corrugated packaging – will also continue to be manufactured at Sappi’s Ehingen mill in Germany. With this project, Sappi isn’t just expanding its production capacity in the corrugated board business. By offering the same product quality from both mills, Sappi is bringing production closer to its customers – to guarantee a sustainable and short supply chain in the heart of Europe.

• Sappi’s Fusion Topliner virgin fibre liner strengthens brand image and impact, and demand continues to grow
• Capacities are now being expanded through significant investment at Gratkorn mill, Austria
• Volumes will be enlarged in the next months to ensure reliable customer supply

Just a decade ago, there were only two options on the market for coated white corrugated liners: either kraft liner made from high-quality raw materials and with a very low recycled content, or test liner, which consists almost exclusively of recycled paper. As an alternative, Sappi developed its Fusion Topliner, now the most widely used corrugated liner made from pure virgin fibre. It is recommended for applications such as premium quality consumer goods packaging and POS displays – where high visual impact and differentiation are key. The product also stands out with exceptional strength and versatility.

Sappi’s Fusion Topliner has been successful on the market for many years. Demand for the product has continued to grow, due to its exceptional characteristics for print quality and finishing. Production is now being expanded from the German mill in Ehingen to include Sappi’s flagship mill in Gratkorn. The available capacities are now being expanded to include the production of Fusion Topliner in addition to existing graphic papers. Volume availability will be increased month by month to support the expected growth of our customers, and to satisfy large requirements in the corrugated board business.

The year 2021 is expected to end on an extremely positive note for the Swiss Group, with an organic turnover record (significantly higher than pre-pandemic levels) and an acceleration of the product range completion strategy: after the addition of Amom, in June, Riri is proud to share the closing of the acquisition and integration into the Group of DMC, a company specialized in the metal components sector for haute couture, more specifically leatherwear. This is another step towards creating a single hub dedicated to luxury accessories, whose goal is to develop a balanced portfolio including zips, buttons, metal hardware, and fashion jewels.

DMC, established in 1976 in Scarperia e San Piero a Sieve, near Florence, has a consolidated experience with major luxury brands and a strategic position, being located close to the Tuscan leatherwear district. Originally a family-run business, today it is a company which combines highly skilled Italian artisan tradition, which has a strong connection in the region, with the use of cutting-edge technologies. Its comprehensive vertical integration system allows for in-house management of all production process phases.

“The addition of DMC to the family” – explains Renato Usoni, CEO of the Riri Group – “is not just a bonus for our offer in terms of product range. It means also a fundamental milestone in the creation strategy of a fully integrated business model”. As a matter of fact, the operation is a further improvement in the Group’s designing potential, increasingly able to provide tailor-made accessories, as requested by each client, achieving very high levels of customization while keeping up massive investments in new technologies, organization systems and sustainability projects with a cross-cutting impact.

“Our Group” – Usoni adds – “is, to all intents and purposes, a leader in terms of innovation, thanks to its state-of-the-art plants, which are located in seven production factories, and thanks to its constant search on emerging technologies and materials”. More specifically, DMC’s proposal – in line with Riri’s – is increasingly focused on the use of sustainable products and on processes with a low environmental impact.

Furthermore, the new company in the Group is committed to integrating the economic development of its business with the ensuing social accountability. Evidence of this attention is shown by its having been awarded the certifications ISO 9001, due to the quality of its processes, products and services, and SA 8000, for its ethical management of human resource. Moreover, every year DMC produces a social report which, in line with what have always been distinctive values of Riri, bears witness to its intent of communicating its achievements clearly and transparently.

• Order intake of CHF 698.6 million in third quarter 2021
• Order intake of CHF 1 673.9 million after nine months
• Acquisition of the three Saurer businesses on schedule
• Credit lines renewed early
• Outlook 2021

The positive market dynamics, which Rieter has already reported on several occasions, continued in the third quarter of the current year. Rieter recorded an order intake of CHF 698.6 million in the third quarter of 2021 (2020: CHF 174.4 million).

The order intake of CHF 1 673.9 million after nine months corresponds to an increase of 294% compared to the prior year period (2020: CHF 425.1 million).
 
The market development is broadly supported at the global level and is based on a catch-up effect from 2019 and 2020 in combination with a regional shift in demand. Rieter believes that a major reason for this regional shift in demand is the development of costs in China. This is leading to increased investments outside the Chinese market. The orders came primarily from Turkey, Latin America, India, Pakistan and China. Overall, Rieter is benefitting from its innovative product range and the global positioning of the company.

The Business Group Machines & Systems achieved an order intake totaling CHF 1 281.6 million in the first nine months of 2021 (+447%).*

In the first nine months of 2021, the Business Group Components recorded an increase of 95% to CHF 227.0 million, while the Business Group After Sales posted an order intake of CHF 165.3 million, an increase of 123% compared to the prior year period.*

Acquisition of the three Saurer businesses on schedule
The acquisition of the three businesses from Saurer, which Rieter announced on August 16, 2021, is proceeding according to plan. The incoming orders for these businesses are not taken into account in this trading update.
 
Credit lines renewed early
The Rieter Group arranged the early renewal of the existing committed credit lines (five-year term, totaling CHF 250 million).
 
Outlook 2021*
The first nine months of 2021 were characterized by a rapid market recovery combined with a regional shift in demand. Rieter expects the demand for new systems to gradually return to normal in the coming months.  
 
For the full year 2021, Rieter anticipates sales of around CHF 900 million.

* See attached document for more information.

• From fossil to renewable materials: Members advocate policy analysis and focused implementation of the renewable carbon strategy

The members of the Renewable Carbon Initiative (RCI) (www.renewable-carbon-initiative.com), founded in September 2020, have joined forces to shape the transition from the fossil to the renewable age for the chemical and materials industry. This means spreading the concept of renewable carbon and developing new value chains based on renewable carbon as a feedstock.

In the meantime, several activities have started from which future members can benefit as well. First and foremost is the kick-off to comprehensive policy analysis. What influence will forthcoming regulation have on chemicals, plastics, and other materials? When and where should the renewable carbon idea be emphasized and referred to?

The policy analysis will examine pending policies in the European Union – and a later expansion to America and Asia is planned as well.

A particular focus will be placed on upcoming policies and regulations and how they impact renewable carbon. The members are currently deciding on where to start specifically, but questions that may be considered are: What does the new climate law and the “Fit for 55-Package” mean for chemicals and materials? What can be expected from REACH and microplastics restrictions? How relevant is the “Sustainable Products Initiative” and the coming restrictions for Green Claims? Circular Economy, Zero Pollution and Sustainable Financing are keywords of the future European landscapes, which might become very concrete for chemistry and materials in the next few years. To what extent the concept of renewable carbon for materials is considered in policy already and how it could be further introduced in future legislation are two of the main questions investigated in the working group “Policy”.

This working group is open to all members of RCI. Policy experts provide the respective analysis as a foundation, organising discussions between members of the policy group and plan meetings with policymakers to introduce the Renewable Carbon concept.

Additional working groups have been created, one with a focus on communication, the other looking at the development of a renewable carbon label. In early September, a renewable carbon community will be launched as a starting point for even more interaction between the members, to discuss strategies, create new value chains and start project consortia.

The Renewable Carbon Initiative (RCI) is a dynamic and ambitious group of interested parties. Membership numbers have now more than doubled since the launch almost a year ago, with RCI now boasting 25 members, 6 partners and over 200 supporters. It welcomes all companies that are on the way to transform their resource base from fossil to renewable.

A research report released today has revealed the innovative new ways retailers are using RFID technology in-store to improve profitability. Authored by Emeritus Professor Adrian Beck from the University of Leicester and the ECR Retail Loss Group and supported by Checkpoint Systems, Utilising RFID in Retailing: Insights on Innovationhighlights how companies are employing the technology for a broader range of purposes. It demonstrates the value the technology is bringing to their businesses and ultimately, the impact it is delivering to their bottom line. Crucially, it also shows thatmore retailers than ever are recognizing the benefits of RFID and driving uptake within their organisations. The report claims that as businesses are becoming more established in their use of RFID-generated data, they are gradually incorporating more usecases into their business-as-usual practices.

The report claims that as businesses are becoming more established in their use of RFID-generated data, they are gradually incorporating more usecases into their business-as-usual practices.

In particular, more and more retailers reported using RFID to streamline the audit process (as an alternative to infrequent organisational stock takes), which not only delivers considerable cost savings, but also provides more regular insights into the status of inventories. It also found that using RFID was having a significant impact on store processes. While RFID has always been key to inventory accuracy, some companies are now using this data to further improve business activities such as reducing phantom out of stocks, improving rapid stock search and find tasks and developing an efficient ship from store (SFS) capability.

Beyond the more traditional retail model, RFID was seen as a key facilitator in delivering omnichannel retailing by all those questioned. Without the inventory accuracy offered by RFID, few retailers believed they could reliably use their stores as fulfilment centres to output online orders. Indeed, one retailer admitted to only making RFID-enabled store stock available for this purpose. The use of RFID to improve online order accuracy is also becoming more commonplace, to reduce errors in the picking and packing process, therefore improving customer satisfaction. One retailer reported a 90% reduction in incorrect orders and customer complaints since introducing RFID into the process.

Looking to the future, one area where the benefits of RFID are starting to be tested is self-checkouts (SCO). While currently limited due to the need to have a 100% SKU tagging strategy in place, retailers are starting to recognize the benefits the technology could offer including increased speed of checkout, reduced likelihood of double scanning and thereby improved customer service. Another area where retailers also reported reaping the benefits of RFID was loss prevention. While none of those interviewed argued that reducing loss was the primary reason for investing in RFID, many acknowledged they were benefiting from it by using the technology to tackle refund frauds, enable dynamic loss product profiling, manage e-frauds and identify stolen products.