From the Sector

Today, environmental not-for-profit organization Canopy, third-party auditor NEPCon, and Kelheim Fibres released the results of Kelheim’s CanopyStyle Audit. The company’s current supply chain is confirmed as low risk of sourcing wood from Ancient and Endangered Forests or other controversial sources.

Key findings of the audit include:

• The company is at low risk of sourcing from Ancient and Endangered Forests;
• The company has a limited fibre basket and uses a significant proportion of FSC-certified fibres in its viscose products; and
• The company has begun supporting forest conservation solutions in key areas of Ancient and Endangered Forests.

In the spirit of continuous improvement, Canopy recommends that the company increase the proportion of FSC-certified fibre, and make efforts to source 100% FSC, as well as continue to invest in research and development of low-impact alternative fibres, with the goal of launching a fibre line that contain these products.

This audit, which reflects a snapshot in time, is to be conducted annually to ensure that the company continues to meet the expectations of the CanopyStyle initiative. The audit findings contribute to Hot Button Issue Report.

The public report from Kelheim Fibre’s audit evaluations is available for download here: www.kelheim-fibres.com/en/sustainability/certificates/

Non-contact precision spray technology enhances productivity, sustainability and process control

Baldwin Technology Company Inc. has announced that it will showcase the TexCoat G4 non-contact precision spray fabric finishing system at the Techtextil North America tradeshow, held from May 12 to 14, 2020, in Atlanta (booth #3048).

With extensive sustainability benefits, unprecedented tracking and process control, and industry 4.0 integration, the TexCoat G4 provides consistently high-quality fabric finishing, with no chemistry waste, as well as minimal water and energy consumption. 

Baldwin’s innovative non-contact spray technology eliminates chemistry dilution in wet-on-wet processes. The TexCoat G4 consistently and uniformly sprays chemistry across the fabric surface and applies it only where needed, on one or both sides of the fabric. Customers can expect no bath contamination during the finishing process, as well as minimal downtime during changeovers, which are made easy with recipe management that includes automated chemistry and coverage selection.

The TexCoat G4 also enhances sustainability by wasting no chemistry during color, fabric or chemistry changeovers, and because only the required chemistry volume is applied to the fabric, wet pick-up levels can be reduced by up to 50 percent—leading to 50 percent less water and energy consumption. Furthermore, in single-side applications, drying steps can be eliminated for various textiles, including those that are back-coated and laminated, thereby streamlining and simplifying the production process.

In keeping with the brand’s internationalization strategy, Pinko is glad to announce an ambitious retail expansion plan in the Korean market.
The first phase of this retail project, developed in collaboration with Mitsui & Co. Italia and La Pace as local partner, saw the opening of two stores located inside two of the most important and prestigious Korean duty free shopping destinations.

The first Pinko shop in Korea opened its doors at the end of January at Seoul’s Shilla Duty Free Downtown Store, which houses the boutiques of the most prestigious global luxury brands. The inauguration of the second Pinko store in Korea was celebrated with an opening party on Feb. 20. This store is located in Seoul at the Hyundai Department Store Duty Free Dongdaemun, one of the most important Korean touristic attractions at day and night, thanks to its wide offering of merchan-dising categories, spanning from international luxury and fashion items to the highly popular Made in Korea beauty products.

Pinko’s retail expansion plan in the Korean market also includes the opening of two new stores by the end of 2020, while the company aims to operate a total of 14 boutiques, 6 inside department stores and 8 at Duty Free destinations, within three years.

At JEC World 2020, MECELEC COMPOSITES is a finalist of the JEC Innovation Awards in the Design & Furniture category. The Group announces the launch of a new sustainable development application on the urban design market. MECELEC COMPOSITES designed the first mass-produced flax fibre roofs for the 550 Morris columns installed by JCDecaux in Paris. “This is the first application of flax fibre BMC for mass production. The new solution combines all the advantages of composite materials, lightness and strength, with stringent environmental requirements and is adapted to the safety constraints of this kind of street furniture,” says Bénédicte Durand, Chief Executive Officer at MECELEC COMPOSITES.

A COMPOSITE ROOF THAT IS BOTH INNOVATIVE AND GREEN
The dome of the Morris columns is composed of 23 different parts, 14 of which are made from composite materials. To design the roof, MECELEC COMPOSITES developed a new RTM complex and a new BMC material, that is reinforced exclusively with a flax mat. “Today it is the only BMC with a 100% flax fibre reinforcement, which uses a partially recycled ABS resin. It was created specifically for this project and we had to work on the processes in order to adapt them to this new material,” explains Bertrand Vieille, Head of sales.
In the design, MECELEC COMPOSITES replaced the bonding process with a time-saving mechanical assembly process using an invisible fixing system.

AN ECO-FRIENDLY APPLICATION IN LINE WITH THE GROUP’S ECO-DESIGN CSR APPROACH
MECELEC COMPOSITES creates scalable, sustainable and environmentally-friendly street furniture. The Group is committed to developing a sustainable production process and reuses all its waste materials. MECELEC COMPOSITES R&D laboratory promotes eco-design with a process of characterisation and mechanical sizing of parts. “For this project, we imagined, created, produced and delivered a mass-produced composite application with a low environmental impact within less than a year. At the end of its lifecycle, the product completely breaks down, leaving no fibre residue,” Bénédicte Durand concludes.

The integrated sustainable network making fashion circular, Made in Italy and 100% traceable

World leading textile manufacturer Manteco presents its sustainable path for a better future: The Manteco System. A strategy and a vision shaping the company’s sustainable imprint since 1943. The system consists in the development and engineering of a production network involving 100 partner-companies from the whole supply chain “We all team up responsibly to create premium collection based on transparent , traceable  circular economy practices,” comments Matteo Mantellassi, co-CEO of Manteco.
 
To achieve meeting the demand for fair and sustainable fashion that consumers believe in, and is expected  from our clients, the company and its partners have created and accomplished to a Protocol of Sustainable Values and Commitments in line with the highest standards of the global market.

“On a hand, the protocol preserves the unique ‘genius loci’ of our territory – it respects the heritage of all our partners, from the smaller businesses to the more structured ones - on the other hand, it works like a shared compass of sustainable values, allowing the whole supply chain behind Manteco products to stand out and be competitive on the global stage” adds Mantellassi.
 
The protocol and its monitored and traceable system cover virtuous management of resources – e.g. Water, energy and chemical products - waste management and low production impact on the environment but also responsible standards in terms of employment, quality of the working environment, equal rights and anti-discrimination policies.

One of the key  results of such commitment and sustainable development is the creation of an upgraded version of the recycled wool  MWool™: a top ingredient made from premium recycled wool process guaranteed by the Manteco System.The System works like a symphony where management, measurement and controls  are not there just to test  the quality of each single phase of processes or  products , but to make sure and offer the complete traceability of Manteco production.  From raw material, to yarn, spinning, finishing, testing and final fabric.

Some productions tips about Manteco:

•  5.3 million kg of raw materials processed annually.
•  6.860 tests on raw material per year.
•  34.400 tests on finished products.
•  100% made in Italy system completely based in the Prato district since 1943.
•  Total transparency and traceability thanks to a highly skilled management system.

With a turnover of over 91m Euro in 2019 and an annual growth of 17,80% since 2012, Manteco SpA is the 4th textile company in Italy, listed in the TOP30 companies of the Italian fashion system. “The unique Manteco system adds value to our products while highlighting the sustainable path we share with all our partners both upstream and downstream”.

To Accelerate Public-Private Cooperation in Supply Chain Transparency

Asia Pacific Rayon (APR) has joined the first neutral and public traceability platform capable of visualising blockchain-based supply chain data from multiple companies and sources. It aims to help businesses across industries respond to consumer demands for ethical and environmentally friendly products.
The neutral and safe space for collaboration is provided by the World Economic Forum and created in collaboration with Everledger, Lenzing Group, TextileGenesis™, and the International Trade Centre. APR will contribute to Phase 2 of the initiative which seeks to incorporate more data sources.

“APR has started harnessing the potential of enterprise blockchain technology to enable customers to trace finished products back to the plantation forest origins on a smartphone app. To be able now to connect our data to other similar industry initiatives is a natural next step for APR, as is extending the benefits of our upstream traceability to the rest of the textile value chain.

Enhancing Follow Our Fibre with New Mill Sustainability Dashboard

Launched in mid-2019, APR’s blockchain-based Follow Our Fibre allows customers and stakeholders to scan its viscose product with a user-friendly app to access data that traces the product’s journey from plant nursery to viscose manufacturing and on to seaports. In October 2019, APR announced a collaboration with TrusTrace to integrate Follow Our Fibre with the latter’s T-Trace module. This helps connect APR’s upstream data to downstream textile value chain actors such as yarn and fabric customers and fashion brands.

More recently, a sustainability dashboard tracking key mill environmental performance indicators has been added to Follow Our Fibre. The dashboard presents APR’s performance in its first year of operations where a baseline has been established for quarterly tracking, reporting and continuous improvement.
The performance indicators follow key industry standards being set by ZDHC for Man-Made Cellulosic Fibres (MMCF), as well as the European Union Best Available Technologies (EU BAT).

• Focus on Productivity and Efficiency

MS Printing Solutions at the next Heimtextil will focus on presenting textile printing solutions to boost cost-effective and high-quality productions, answering to Industry leaders in home and contract textile who need: productivity, quality and beneficial production process.

Attendees will see a JP4 EVO 3200 printer at work, with Bellagio reactive ink made by JK Group. This is one of MS' solutions which streamlines printing processes, reduces production times and maintenance costs, improving efficiency by:

• making the best use of production buildings, minimizing the space occupied by printers: JP4 EVO is compact and functional.
• taking full advantage of manufacturing-process, reducing downtime therefore improving productivity-performances: JP4 EVO can be fed by external roll unwinder ensuring timing optimization.
• using inks with a custom-made waveform, lowering the most common defects due to the interaction between ink and printheads, improving your productivity and competitiveness

The show will be the occasion for the Technical and Sales Teams to illustrate all details which characterize Minilario.  The printing machine, launched at the last ITMA, is the ideal choice for those searching for: flexibility, quality, speed, energy efficiency and sustainability, all in one.

The 64 print heads installed on the innovative printing carriage allow Minilario to reach the shocking but real printing speed of 18m/min, fitting the Home and contract textile demand of productivity and quality, applying a cost-effective production process.

The show will offer the opportunity to remark MS's sustainability commitment, started with #transparentaswater project based on the 100/90/10 paradigm aimed to engage the whole Textile Printing Industry in a big change. The commitment continued with MS’s adhesion to the “Sustainable Technologies” project launched by ACIMIT which selects textile machinery and systems manufacturers whose production specifications ensure a low environmental impact, combining sustainability and innovation. MS' printing machines may boast “Green Label” as “Suppliers of Sustainable Technologies” (come and visit us to go deeply inside our sustainability commitment).

• Group sales increases by approximately 6 percent compared to the prior year period to 832 million euros due to organic growth in the market segments Digitization, Energy and Chemicals
• Group recurring EBIT at around 54 million euros; adjusted for a positive one-time effect in the prior year approximately on the comparable level of the prior year
• Business unit Composites – Fibers & Materials (CFM) deteriorated substantially in the third quarter 2019 due to the weak development in the market segments Textile Fibers, Wind Energy and Industrial Applications; Graphite Materials & Systems (GMS) developed better than expected on the very good level of the prior quarter reaching overall a record high level in 9M/2019
• Free cash flow from continuing operations improved significantly in the first nine months
• Impairment testing triggers a non-cash impairment charge of approximately 75 million euros in CFM in the third quarter
• Revised guidance of October 25, 2019: Recurring EBIT at CFM in a negative mid-to-high single digit million euros amount and on Group level at 45 to 50 million euros
• Countermeasures initiated to improve earnings of CFM
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: ”The structural growth drivers remain intact in our strategically relevant markets. The countermeasures to improve earnings of CFM will be implemented consistently.”

In the third quarter 2019, the business units of SGL Carbon developed very differently. While Graphite Materials & Systems (GMS) showed better than expected results, Composites – Fibers & Materials (CFM) deteriorated compared to the two previous quarters. This is attributable to the weaker development in the market segments Textile Fibers and Industrial Applications. In total, sales revenue in the first nine months 2019 grew by approximately 6 percent to reach 832 million euros. Recurring Group EBIT after nine months reached approximately 54 million euros. Adjusted for a positive one-time effect in the prior year, this was comparable to the prior year level.

In its ad-hoc notification of October 25, 2019, the company revised its guidance for recurring EBIT of CFM downwards to a negative mid to high single digit million euro amount. On the Group level the company now expects a recurring EBIT at 45 to 50 million euros. Due to the lower starting point in 2019 as well as the ongoing weakness in the market segments Textile Fibers and Industrial Applications in the business unit CFM a non-cash impairment charge in the amount of approximately 75 million euros was recorded in the third quarter 2019. In recent years acquired assets of the former joint ventures with BMW and Benteler were not affected by this impairment. In addition, the impairment charge of CFM led to a valuation allowance on deferred tax assets in the amount of 7.4 million euros. Against this background, SGL Carbon now expects a net result of approximately minus 100 million euros for fiscal year 2019.

• Order intake of CHF 524.5 million after nine months
• Order intake for a major project from Egypt booked in October 2019
• Market situation remains challenging
• Real estate sale in Ingolstadt successfully completed
• Outlook 2019

The cumulative order intake recorded by Rieter Group in the first nine months of 2019 of CHF 524.5 million (2018: CHF 749.8 million) was down by 30% compared to the prior-year period. In the third quarter of 2019, order intake was CHF 146.2 million (Q3 2018: CHF 238.0 million).

Order Intake for a Major Project from Egypt Booked
On October 7, 2019, Rieter booked the order intake for the first six projects with Cotton & Textile Industries Holding Company, Cairo (Egypt) of around CHF 165 million. This amount is thus not included in the figures for the third quarter of 2019 and will positively affect the fourth quarter. The sales are anticipated to be realized in the 2020/2021 financial years. The order includes deliveries of compact and ring spinning systems and it is part of a comprehensive modernization program for the Egyptian textile industry.

Market Situation Remains Challenging
The demand for new machinery remained at a low level in the third quarter of 2019. The primary reasons are existing overcapacity in the spinning mills, the trade conflict between the USA and China, as well as political and economic uncertainties in other regions of importance to Rieter. Rieter's market share continues to be at the level of around 30%.

Real Estate Sale in Ingolstadt Successfully Completed
Rieter completed the real estate sale in Ingolstadt (Germany) to GERCHGROUP of Düsseldorf (Germany) on September 13, 2019. Rieter expects a non-recurring profit contribution from this transaction on a net profit level of around EUR 60 million.

Outlook 2019
Rieter estimates significantly lower sales for the year 2019 as a whole compared to 2018, and expects a significant drop in the result from the ongoing business. EBIT and net profit are anticipated to be significantly above the levels of the previous year due to the non-recurring profit contribution from the sale of real estate in Ingolstadt (Germany). The cost-cutting measures introduced have been implemented to a great extent.

Graf introduces at ShanghaiTex three novelties for the textile market: a new card clothing with up to 30% longer lifetime, a height adjustable comb and a helpful solution for card clothing management.
MULTISHARP, the unique wear resistant alloy for card clothings, increases the lifetime of metallic card clothings on the cylinder by up to 30%. Additionally, the work load of the maintenance team can be minimized by providing longer service cycles and less unplanned downtimes.

The yield on raw material can be increased without compromising the quality requirements – thanks to the continuous height adjustability of the new combs series. The continuous and exact gap setting between nipper and circular comb on each individual combing head provides customers a new level on raw material utilization. Additionally, the maintenance people will appreciate the comfortable and easy installation of the circular comb.

With the card clothing management the overall investment costs can be reduced. This is based on minimizing the operational expenses including optimizing the overall equipment effectiveness. Graf’s card clothing management prolongs the lifetime of flexible flats by up to three times without comprising on the quality parameters throughout the entire life cycle.