From the Sector

• Clean Technology. Smart Factory.

Remscheid – Oerlikon invites all visitors to this year's ITMA in Barcelona on a journey into the future of manmade fiber production. From 20 to 26 June 2019, the world market leader will show all its guests its vision of a sustainable and automated manmade fiber production in a virtual 4D showroom at its 1,000 m² stand in Hall 7, A101: "Clean Technology. Smart Factory." is the motto of the future. And this is only a stone's throw away from reality at the stand. Because today Oerlikon is presenting four world premieres for efficient machine and plant concepts in a new, innovative industrial design. Together with numerous other innovations, all this forms the new DNA of the Oerlikon Manmade Fibers segment.

The challenges for the manmade fiber industry are manifold and Oerlikon shows its customers solutions:

1. Choosing the right business model
Price pressure on fiber and yarn manufacturers is growing due to global market consolidation. Here it is important to position oneself correctly. Are you producing polyester, nylon or polypropylene for the niche market and skimming off good margins with innovative products and ingenious material properties, or are you looking for business success through economies of scale in the volume market such as the constantly growing apparel sector? Oerlikon has the right answers for both business models. And the most important thing: the market leader supplies all solutions from a single source. See for yourself at the world premieres of the machine and system concepts of WINGS FDY PA6, BCF S8 Tricolor and the revolutionary eAFK Evo texturing machine.

2. Finding alternatives for good personnel
Finding good operators in the manmade fiber industry is becoming increasingly difficult, even in emerging industrial nations such as China, India and Turkey. The solution is obvious. What, for example, the automotive industry achieved years ago with the 3rd Industrial Revolution is now also taking its course in the textile industry. And at the same time it is even shifting up a gear. In the next step, automation in combination with digitization will lead to new, sustainable production. Oerlikon will be showing how automation and digitization interact at ITMA. Self-learning machines and systems, artificial intelligence (AI), remote services and edge computing are just a few of the key words in the digital half of the new Oerlikon Manmade Fibers DNA.

3. Guarantee quality and traceability
The qualities of the fibers and yarns must meet the highest demands and their production must be traceable throughout the textile value chain. This no longer only plays an important role in the automotive industry, where safety is of paramount importance. Other branches of industry that use fibers, yarns and nonwovens also want to know where the raw materials they produce for consumer articles come from. Legal regulations are demanding this more and more frequently. Oerlikon offers optimal solutions with its DIN ISO certified manufacturing processes. More than half of the world's manmade fiber producers are convinced every day that the qualities produced on Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven equipment are right – and all visitors to ITMA can do the same on site.

4. Efficient and sustainable production
In the future, the materials produced from manmade fibers must become part of a further improved global recycling economy. The recycling of polyester – with over 80% market share the most frequently used manmade fiber in the world – has not only been on the agenda since today. Oerlikon already has solutions at hand: from PET bottles to fibers and filaments, to textiles and carpets. ITMA is the next step. With the VacuFil® Oerlikon in cooperation with the subsidiary company BBEngineering presents the world premiere No. 4 – a recycling solution within a running polyester production with a waste-free approach.

Vision becomes reality
The Oerlikon Manmade Fibers segment thus demonstrates what the ITMA in Barcelona promises as the world's leading trade fair for textile machinery and plant construction: "Innovating the world of textiles – sourcing for a sustainable future". In Hall 7, A101, this is already reality.

• Christian Bruch and Stefan Fida proposed to serve as new members of the Supervisory Board
• Hanno Bästlein and Christoph Kollatz will resign from their positions on the Supervisory Board at the upcoming Annual General Meeting

Prior to the Annual General Meeting of the publicly traded company Lenzing AG scheduled for April 17, 2019, the Nomination Committee dealt with the future composition of the Supervisory Board. It has proposed that the Annual General Meeting appoint Christian Bruch to serve on the Supervisory Board. Mr. Bruch has been a member of the Executive Board of Linde AG since 2015 and a member of the Management Committee of Linde plc since 2019. The graduate in mechanical engineering will contribute his extensive experience in plant engineering and various technical and management positions in internationally operating industrial companies. The Viennese lawyer Stefan Fida has also been nominated as a future member of the Supervisory Board.

As previously announced, Hanno Bästlein will resign from his position on the Supervisory Board at the upcoming Annual General Meeting in order to be able to increasingly devote his attention to his own business activities. Christoph Kollatz will also step down from the Supervisory Board for professional reasons at the Annual General Meeting in April 2019.

“We would like to thank Hanno Bästlein and Christoph Kollatz for their dedicated work on the Supervisory Board of Lenzing AG. Thanks to their expertise, they made a major contribution to important strategic decisions in the company. During his four years as Chairman of the Supervisory Board, Hanno Bästlein decisively supported the strategy of the Lenzing Group and thus contributed to the enhanced resilience of the company based on the expansion with specialty fibers”, says Stefan Doboczky, Chief Executive Officer of Lenzing AG.

• Hexcel’s Composite Innovations For Aerospace, Automotive, Energy And Marine Applications At JEC World 2019 Hall 5 - Stand J41

STAMFORD, Conn. – At this year’s JEC World taking place in Paris on March 12-14, Hexcel will promote a wide range of composite innovations for customer applications in aerospace, automotive, energy and marine markets.

Aerospace Innovations

Hexcel’s HiTape® and HiMax™ dry carbon reinforcements were developed to complement a new generation of HiFlow™ resin systems, producing high quality aerospace structures using the resin infusion process. HiTape® was developed for the automated lay-up of preforms and HiMax™ is a range of optimized non-crimp fabrics (NCF). Both products incorporate a toughening veil to enhance mechanical properties, meeting the structural requirements for aerospace parts.

Visitors to JEC will see an Integrated Wing Panel demonstrator and an I-beam, both made with HiTape® reinforcements, and an Opticoms rib made with HiMax™ NCF. The Opticoms rib and I Beam were both manufactured using C-RTM (Compression Resin Transfer Molding). They were injected with Hexcel’s RTM6 resin in a process taking less than 5 minutes. The total manufacturing cycle for both parts was just 4.5 hours.

Also among the Aerospace exhibits, Hexcel will display a composite petal for a satellite antenna, manufactured by Thales Alenia Space Italia. The petal is part of a set of 24 deployable structural elements that form the large area reflector assembly used on board Low Earth Orbit (LEO) observation satellites. Thales Alenia Space Italia selected Hexcel’s HexPly® M18 prepreg for this application, acknowledging the superior mechanical and outgassing properties provided.

Another Hexcel prepreg application on show is a “zero” frame, manufactured by Aerofonctions for the engine area of Daher’s TBM 910/930 single-engine turboprop aircraft. Hexcel’s HexPly® M56 prepreg was selected by Daher for the “zero” frame – a product developed for Out of Autoclave applications that provides the same high quality and performance as autoclave-cured prepregs, from a simple vacuum bag cure in an oven.

With 50 years of experience behind its comprehensive range of high-strength, high-strain PAN-based carbon fibers, Hexcel continues to innovate, and is introducing two new fibers to its portfolio. HexTow® HM50 combines high modulus and high tensile strength, making it ideal for commercial and defense aircraft and engines. HexTow® 85 was developed specifically to replace rayon-based carbon fiber for ablative applications.

HexTow® carbon fiber holds the most qualified carbon fiber positions on aerospace programs in the industry and is the best unsized fiber available on the market. It provides excellent bonding interfacial properties with thermoplastic matrices and is the best-performing fiber for 3D printing applications.

Additive manufacturing is another area of expertise for Hexcel, using PEKK ultra-high performance polymers and HexAM™ technology to manufacture carbon-reinforced 3D printed parts. This
innovative process provides a weight-saving solution for intricate parts in highly demanding aerospace, satellite and defense applications. HexPEKK™ structures offer significant weight, cost and time-to-market reductions, replacing traditional cast or machined metallic parts with a new technology.

Hexcel is well known for its range of weight-saving, stiffness-enhancing honeycombs and the company adds value by providing a range of engineered core solutions to customers from facilities in the USA, Belgium and the newly opened Casablanca plant in Morocco. Hexcel’s engineered core capabilities enable highly contoured parts with precision profiling to be produced to exacting customer specifications. An example of such a part will be on display at JEC. Made from Aluminum FlexCore®, the part is CNC machined on both sides, and formed and stabilized with both peel ply and flyaway layers of stabilization. Aircraft engines benefit from a number of Hexcel core technologies including HexShield™ honeycomb that provides high temperature resistance in aircraft engine nacelles. By inserting a thermally resistant material into honeycomb cells, Hexcel provides a core product with unique heat-shielding capabilities that allows for the potential re-use of material after a fire event.

Hexcel’s Acousti-Cap® broadband noise-reducing honeycomb significantly improves acoustic absorption in aircraft engine nacelles. The acoustic treatment may be positioned at a consistent depth and resistance within the core, or can be placed in a pattern of varying depths and/or resistances (Multi-Degrees of Freedom and 3 Degrees Of Freedom), offering an acoustic liner that is precisely tuned to the engine operating conditions. These technologies have been tested at NASA on a full engine test rig and meet all 16 design conditions without trade-offs.

HexBond™ – the new name in Adhesives

Hexcel’s range of high performance adhesives has expanded considerably following the company’s acquisition of Structil. The company has now decided to unite the range by marketing all of its adhesive products using HexBond™ branding. The comprehensive range of HexBond™ structural film adhesives, foaming adhesive films, paste adhesives, liquid shims, epoxy fillets and Chromium free liquid primers is suitable for a wide range of applications in combination with Hexcel’s prepreg and honeycomb products.

Automotive Innovations

Hexcel’s carbon prepreg patch technology provides an innovative way of locally stiffening and reinforcing metal parts, providing noise and vibration management functionality. HexPly® prepreg patches consist of unidirectional carbon fiber impregnated with a fast curing epoxy matrix that has self-adhesive properties, enabling it to bond to metal in a highly efficient one-step process. These key technology properties are demonstrated in an 18.5kg aluminum subframe (that is 50% lighter than steel equivalents), which was reinforced with 500 grams of HexPly® prepreg and tested by Saint Jean Industries. The part demonstrates a significant reduction in noise, vibration and harshness (NVH). Other benefits include lower production costs, energy savings, increased driver comfort, production flexibility and part count reduction. With this technology Hexcel is a finalist in the JEC Innovation Awards 2019 in the Automotive Applications category.

HexPly® prepreg patch technology was also applied to a hybrid side sill demonstrator developed with Volkswagen and Dresden University to address future crash test requirements, specifically for electric cars. Combining fiber-reinforced plastic (FRP) with metal, the hybrid construction allows for optimum performance including weight savings, enhanced safety, increased energy absorption, battery protection in a crash situation and production flexibility.

Hexcel will also display a lightweight CFRP transmission crossmember produced from Hexcel’s high performance HexMC®-i 2000 molding compound. The transmission crossmember was developed in partnership with the Institute of Polymer Product Engineering (at Linz University), Engel and Alpex. As the part connects the chassis together and supports transmission it has to be stiff and strong, resisting fatigue and corrosion. Hexcel’s HexMC®-i 2000 was selected as the best-performing molding compound on the market, curing in as little as two minutes to produce lightweight, strong and stiff parts.
To produce the transmission crossmember HexMC®-i 2000 preforms are laid up in Alpex molds and compression-molded in a v-duo press that was tailored for the application by Engel. Ribs, aluminum inserts and other functions can be molded into the part using the single-stage process, reducing component-count. Any offcuts from the preforms can be interleaved between the plies of material to provide additional reinforcement in key areas - meaning that the process generates no waste.

Other Automotive promotions on Hexcel’s stand at JEC World include a composite leaf spring manufactured by ZF using HexPly® M901 prepreg. In contrast to steel leaf springs, composite versions offer many advantages including weight savings of up to 70%, high corrosion resistance, optimized system integration and superior performance. HexPly® M901 prepreg reduces the cure cycle to below 15 minutes and provides 15% higher mechanical performance, with enhanced fatigue properties. It also operates at high temperatures, providing a Tg of up to 200°C following a post cure.

Marine Innovations

Hexcel has a comprehensive range of products aimed at racing yacht and luxury boat builders that include America’s Cup, IMOCA class and DNV GL-approved prepregs, woven reinforcements and multiaxial fabrics for hull and deck structures, masts and appendages.

At JEC World Hexcel will display an IMOCA yacht mast manufactured by Lorima using HexPly® high modulus and high strength carbon fiber prepreg from Hexcel Vert-Le-Petit. Lorima is the exclusive official supplier of masts for IMOCA 60 class racing boats.

Hexcel’s HexTow® IM8 carbon fiber has been selected as the highest performing industrial carbon fiber on the market and will be used by spar and rigging manufacturer Future Fibres to manufacture their AEROrazr solid carbon rigging for all the teams in the 36th America’s Cup.

Hexcel’s HiMax™ DPA (Dot Pattern Adhesive) reinforcements are non-crimp fabrics supplied pre-tacked, allowing multiple fabrics to be laid-up more easily in preparation for resin infusion. Providing an optimal, consistent level of adhesion, they allow a faster and more consistent resin flow, as well as eliminating the use of spray adhesive for a healthier working environment and lower risk of contamination. Simply unrolled and applied to the mold or core layer before the introduction of resin, HiMax™ DPA fabrics are widely used in boat building, where lay-up times can be reduced by up to 50%.

Wind Energy Innovations

Hexcel has developed a range of HexPly® surface finishing prepregs and semi-pregs for wind turbine blades and marine applications. Providing a tough, durable and ready-to-paint surface without using in-mold coats, these products shorten the manufacturing cycle and reduce material costs. HexPly® XF2(P) prepreg is optimized for wind blades and has a ready-to-paint surface, straight from the mold, saving at least 2 hours of takt time.

Polyspeed® pultruded carbon laminates were developed for load-carrying elements in a blade structure and are manufactured with a polyurethane matrix that provides outstanding mechanical performance in terms of stiffness and durability. The blade manufacturing process is optimized, with increased throughput. The pultruded laminates are supplied in coils as continuous cross section profiles.
HiMax™ non-crimp fabrics using E-glass, high modulus glass and carbon fibers are also available in a wide range of unidirectional, biaxial and triaxial constructions. HiMax™ fabrics have applications throughout the turbine, from the stitched carbon fiber UDs used in the main structural elements, to glass fabrics and hybrids for blade shells and nacelles. There are also specialist applications such as lightweight fabrics for heated leading edge de-icing zones.

• Oerlikon presents its expanded nonwovens product portfolio at the IDEA 2019 in Miami

Neumünster – Oerlikon presents its complete nonwoven plant portfolio for the production of airlaid, meltblown, spunbonded and hybrid materials at this year’s IDEA in Miami from 25–28 March. The focus of its presentation will be on solutions for hygiene, medical and other disposable nonwovens. Visitors to this year’s IDEA can inform themselves on the wide range of products at Oerlikon’s exhibition stand (no. 1724).

Two strong partnerships for disposable nonwovens

While two years ago the Nonwoven business unit of the Oerlikon Manmade Fibers segment focused almost exclusively on solutions for technical applications, the company has now expanded its product portfolio to include solutions for disposable nonwovens by establishing strong partnerships.

Oerlikon & Teknoweb Materials – two strong partners for the nonwoven industry

As early as spring 2017, Oerlikon Manmade Fibers' Nonwoven business unit had entered into a strategic partnership with the Italian company Teknoweb Materials. Teknoweb Materials is an established technology supplier in the field of wipes and other disposable nonwovens. With its LEVRA technology, the company has its own patented, particularly efficient manufacturing process for wipes. It also has extensive process know-how on the making and further processing of these nonwoven materials. The Nonwoven business unit of Oerlikon’s Manmade Fibers segment completes this partnership with its well-established machine and plant solutions. Teknoweb Materials will also be represented at IDEA at the Oerlikon exhibition stand (no. 1724).

Cooperation with Shaoyang Textile Machinery

For spunmelt systems solutions for hygiene and medical applications, Oerlikon has been in cooperation with the Chinese machine and plant manufacturer Shaoyang Textile Machinery since Autumn of last year. The goal of these cooperation partners is to advance the international marketing of spunmelt plants outside of China. Oerlikon Manmade Fibers’ Nonwoven business unit contributes its plant engineering know-how and is responsible for product and process guarantees. Oerlikon also assumes the overall project responsibility as well as world-wide customer service outside of China. In return, Shaoyang, with its headquarters in the city of the same name in the Hunan province, supplies the plant technologies.The advantage for the customer: competitive solutions at an attractive price level with comparatively low investments.

• Three companies with complementary strengths team up
• BASF leads a Series A investment round with Materialise as one of the co-investors

BASF Venture Capital is leading the Series A investment round in Essentium, Inc., an innovative developer of disruptive, industrial additive manufacturing solutions headquartered in College Station, Texas. Materialise is one of the co-investors in the Series A investment round in Essentium, Inc. BASF and Essentium have been working together on advanced fused filament fabrication (FFF) solutions using Essentium’s proprietary FlashFuseTM technology for high mechanical strength in the build direction for extrusion printed parts. The two companies are now extending their strategic partnership to establish a consistent global materials supply chain supportive of Essentium’s new High Speed Extrusion (HSE) additive manufacturing platform. Essentium and BASF welcome Materialise to enter this strategic partnership to develop 3D printing software for the Essentium technology. This will allow users to take advantage of the speed of the HSE technology while having immediate access to the full Materialise software capabilities for professional 3D printing. The three companies combine their complementary strengths to jointly advance 3D printing technology and customer value to enable industrial additive manufacturing.

BASF is contributing comprehensive material know-how, a broad product portfolio, and its global network to the partnership. Materialise adds nearly three decades of expertise in the development of innovative 3D printing software solutions. Essentium is addressing additive manufacturing at scale by developing an industrial additive platform truly built for the production floor, providing its FlashFuseTM electric welding technology, and engineering-grade, multi-layer filaments for demanding applications. Together, the three partners intend to innovate solutions with advanced combination of hardware, software and materials to unleash the potential of Essentium’s unique high-speed-printer technology, coordinating their strengths to the best advantage.

“Our joint investment strengthens our co-operations with both Essentium and Materialise and accelerates the innovation potential of this powerful team to the benefit of BASF’s customers,” said Markus Solibieda, Managing Director of BASF Venture Capital.

“With this strategic investment, Essentium and BASF are focusing on improved supply chain performance, material consistency and accessibility. Essentium is also delighted to begin a new partnership with Materialise as the three companies focus efforts toward a new era for smart solutions in the global additive extrusion space. Together, we believe manufacturers everywhere will be able to accelerate production due to increased access to our new solutions, bolstered by a holistic, customer-centric approach,” comments Dr. Blake Teipel, CEO of Essentium, Inc.

“Materialise, Essentium and BASF share a vision for growth in the 3D printing industry that builds on the creation of meaningful applications in an open and vibrant ecosystem”, said Bart Van der Schueren, CTO of Materialise. “This partnership helps to promote a more open market model, which will fuel the adoption of 3D printing in the industrial field by offering users more control, more choice in materials and ultimately lower cost and higher volumes.”

BASF and Materialise are joined by a syndicate of private venture investors. Moving forward, BASF, Materialise, and Essentium will jointly drive the transition from 3D printing to scalable additive manufacturing.

Decline in revenue due to lower prices for standard viscose, less favorable currencies and lower production volume

• Pressure on prices for key raw materials remains high
• Positive impact due to focus on specialty fibers and further optimization of the product mix
• Expansion project in Mobile temporarily mothballed
• Acquisition of the remaining 30 percent of Lenzing (Nanjing) Fibers Co. Ltd.

The Lenzing Group recorded a solid business development in the first three quarters of 2018. The decline in revenue and earnings compared with the same period of the previous year was essentially based on a mix of lower prices for standard viscose, more unfavorable exchange rates and price increases for key raw materials. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment.

Revenue decreased by 5.2 percent to EUR 1,636.2 mn over the comparative period of the previous year. Apart from the high starting base, this was primarily attributable to the expected challenging market environment for standard viscose, less favorable exchange rates and lower production volume. EBITDA (earnings before interest, tax, depreciation and amortization) recorded a decline by 26.8 percent to EUR 290.6 mn due to price increases for key raw materials and higher energy and dissolving wood pulp prices. The EBITDA margin dropped from 23 percent in the first three quarters of the previous year to 17.8 percent. EBIT (earnings before interest and tax) fell by 36.2 percent to EUR 190.3 mn, leading to a lower EBIT margin of 11.6 percent (01-09/2017: 17.3 percent). Net profit for the period dropped by 39 percent from EUR 219.3 mn in the previous year to EUR 133.8 mn. Earnings per share equaled EUR 5.06 (01-09/2017: EUR 8.12).

“The Lenzing Group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development and the corporate strategy sCore TEN has a positive impact. The new production line in Heiligenkreuz started up successfully and customers’ feedback has been positive,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “While many viscose producers are faced with a very tense profit situation, we are well positioned due to our specialty strategy and still expect a satisfactory full year”, Doboczky adds.

Key strategic measures were implemented during the first three quarters of 2018 in line with the sCore TEN strategy. The start-up of new capacities for lyocell fibers in Heiligenkreuz, the production start of LENZING™ ECOVERO™ fibers at the Nanjing site and the investment in another pilot line for TENCEL™ Luxe filaments are important steps to accomplish the goal of increasing the share of specialty fibers in total revenue.

Project in Mobile temporarily mothballed
Due to the decision to temporarily mothball the lyocell expansion project in Mobile, Alabama (USA), in view of the buoyant US labor market and trade tensions between the major trading blocks, the implementation of the expansion plan for specialty staple fibers will be slowed down. The Lenzing Group will put all its effort to readjust the execution of its growth plan to meet strong market demand for its lyocell fibers. This includes an increased focus on the lyocell expansion project in Prachinburi (Thailand).

Advancing forward solutions
Regarding the capacity expansion for specialty products such as TENCEL™ Luxe filaments and LENZING™ ECOVERO™ viscose fibers, Lenzing is still on track. After the introduction of TENCEL™ Luxe branded lyocell filament yarns in the previous year, Lenzing continues to drive innovations in the area of the value chain. In September, the company also announced the successful development of the LENZING™ Web Technology, a new technology platform focusing on sustainable nonwoven products, which will lead to new market opportunities for the industry. Following several years of research and development work and investments totaling EUR 26 mn, the pilot plant at the headquarters in Lenzing has been successfully put into operation.

Largest dissolving wood pulp line worldwide
At the end of June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp plant in the state of Minas Gerais (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers. The joint venture is investigating the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decisionto build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Acquisition of Chinese operation
At the beginning of November the takeover by the Lenzing Group of the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC was completed. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The acquisition will have a negative impact on net profit of approx. EUR 21 mn for the fiscal year 2018. The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

Expansion of capacities
CAPEX (investments in intangible assets and property, plant and equipment) rose by 35.5 percent year-on-year to EUR 174.1 mn in the first three quarters of 2018. This is primarily attributable to capacity expansions in Heiligenkreuz and the expansion of the existing dissolving wood pulp plant in Lenzing as well as the investments made so far in Mobile.

Outlook
Demand development on the global fiber market remains positive. Lenzing expects wood-based cellulosic fibers to continue to grow at a higher rate than the overall fiber market. In a challenging market environment the Lenzing Group expects solid results for 2018, albeit lower than in the outstanding last two years.

For 2019, Lenzing expects standard viscose markets to remain under pressure because of an ongoing oversupply and very high raw material prices. Lenzing’s specialty fiber business is expected to continue the very positive development.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. Lenzing is very well positioned in this market environment and will continue its consistent focus on growth with specialty fibers.

• HUB 1922, the fashion division of the RUDOLF GROUP, takes the stage at the Kingpins Show in Amsterdam and presents new technologies that make it possible to move away from environmentally questionable industrial practices.
• HUB 1922 also announces the opening of the new company building in an ancient textile factory near Milan.

Amsterdam/Geretsried/Milan. It was only six months ago that the RUDOLF GROUP, with its fashion Division named HUB 1922, began its journey through the fascinating world of garment finishing. Since then, the team has made significant progress and has moved from being a newcomer to the business to a solid and reliable reality. “HUB 1922 introduces the Rudolf Group to design thinking,” says Alberto De Conti, Head of Fashion Division at Rudolf Group. “And when you break perceived restrictions and paradigms within a strongly science-driven organization, only sky is the limit.”

For an entire semester, the organisation remained focused on one, single goal without getting distracted from it: to become the partner of choice for environmentally conscious advancements in garment processing that are rooted in real experience and science.

Emphasis was put on listening attentively to the market and on engineering solutions proactively, without being prompted.
When it comes to Denim, two separate yet correlated calls for action were heard:
1. the need for a serious departure from established industrial practices that are environmentally questionable
2. the opportunity to change the current rules and stir toward enhanced product quality.

Departure from the environmentally questionable

• HypNO: The next generation of bleach

Many attempts to technical alternatives to local and total denim bleaching have been launched in the market, over the past five years, by a number of competing players. Originality and innovation are at the base of HypNO technical uniqueness that can be injected into traditional denim processing, but that can also be used to create whole new processes and aesthetics.
Birth child of relentless dedication to science, HypNO is the latest alternative to the traditional denim bleaching agents currently under the spotlight because of their alleged safety issues. HypNO is the next generation of bleach.

- HypNO is based on the application of a whole new family of RUCORIT compounds, which are halogene-free and heavy metal-free
- HypNO can replace both potassium permanganate and sodium hypochlorite with one more eco-friendly solution
- HypNO is free from unpleasant smells; it is production friendly and suitable for both spray and bath applications
- HypNO does not require neutralisation with agents such as sodium metabisulphite or peroxides, hence reducing the need for chemicals significantly
- HypNO is GOTS approved. Bluesign and ZDHC Chemical Gateway certifications are intended
- HypNO further helps in the elimination of pumice stones
- HypNO is highly efficient and has been engineered to be cost competitive compared to other existing bleaching solutions

Toward enhanced product quality

• SoSoft, RawLong, DuraBlue

Durability over time still builds a brands’ reputation for quality. The notion of “durability” has changed over the years and has moved from sturdy workwear to the product's ability to retain its characteristics and structural properties.

“It goes against the whole denim philosophy, but, jeans are increasingly bought for what they look like at the time of purchase and are expected to evolve as little as possible. It is what it is; you can’t argue with consumers” says De Conti.

SoSoft, RawLong, DuraBlue, the three new technical concepts launched at Kingpins Amsterdam by the RUDOLF GROUP all sit under the umbrella wings of enhanced quality and specifically address long-lasting softness, preservation of original look and depth of blue.

• SoSoft

All appreciate the softness and suppleness of used/worn denim and the comfort benefit it delivers. It is a generic denim truth, and it is even stronger when it can extend over time. SoSsoft is about softeners carefully engineered for an enduring emotion, one that lives along favourite clothes.

Tried and tested to over 15 home washes, these marvels of chemical engineering allow consumers to toss domestic fabric softeners to the benefit of environmental sustainability.

• RawLong

Denim lovers want raw jeans to fade with time, soften and transform into what feels like an extension of their body. More often, people just want to prolong the look they chose. In both cases, home washing is a headache.

Years of testing have identified RawLong innovative, highly durable and natural solution that keep wearers fresh and at ease in their jeans allowing for long-wearing without washing. Moreover, less home washing means much less impact on the environment.

• DuraBlue

The role of designers is to come up with the bluest of blue jeans in a spectrum of fantastic new blue finishes and supporting textures. The role of DuraBlue is to ensure a continuously updated collection of technical solutions that keep that rich, deep, dark blueness of jeans for much longer while limiting the quality issues that come with denim rubbing. In other words, light underwear, snowy shoes, and white sofas no longer live in fear.

The launch of HUB 1922

• Busto Arsizio, Italy.

On a discreet street of Busto Arsizio, a village at the North of Milan is a red-brick building which in the 1800’s was the house of a textile mill. This 150-year-old structure is where the RUDOLF GROUP, the 100-year-old leader of textile, functional, responsible chemistry, is about to open its Fashion Division. Or, better, it’s HUB 1922.

HUB 1922 is committed to research and develop innovation within garment processing for the privately held mother company. HUB 1922, whose doors are expected to open during fourth quarter of 2018, will foster collaborative efforts with international fashion brands and retailers, will provide product innovation ideas at the crossroad of fashion and utilitarian functionality and will introduce elements of unorthodox diversity rooted in deep scientific knowledge, true environmental responsibility, technical innovation and creativity. “At a time when science plays such a powerful role in the life of society, it is incumbent on fashion to be dealing with scientific research. HUB 1922 facilitates that reunion” concludes De Conti.

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.

• Archroma joins hands with Lahore University of Engineering & Technology to foster innovative research in textiles

Reinach, Switzerland - Archroma, a global leader in color and specialty chemicals, announced it has signed a Memorandum of Understanding (MoU) with the University of Engineering & Technology (UET), Lahore, Pakistan. The MoU will pave way for cooperation initially for a five-year period.

The partnership will explore innovations in textile research with futuristic visualization for Pakistan to help the Pakistan textile industry to keep in line with the fast pace of global apparel requirements and evolutions. Both partners will jointly hold sessions to prepare students for the challenges of the textile industry through in-house training sessions, developmental projects, research in textile applications and process innovative methodologies by pioneering value additions. The students of UET will also be able to join internship placement programs at Archroma Center of Excellence at Karachi.

The MoU was officially signed at a ceremony recently held in Faisalabad by Prof. Dr. Fazal Ahmed Khalid, Vice Chancellor of UET and Mujtaba Rahim of CEO Archroma Pakistan Limited.

Speaking at the occasion, Mujtaba Rahim said: “We, at Archroma, believe in continuous improvement and challenging the status quo leading to enhance sustainable growth especially in our product lines creating value for our stakeholders. Through this initiative of mutual cooperation, we will be able to share latest knowledge and technical developments and to work together with the faculty and research team of UET. We also wish to share the innovative textile solutions of Archroma with the students enabling them to enhance their academic performance. Our MoU will go a long way in adding value in the fast growing textile segment, from education to R&D development.”

“This partnership is going to have far-reaching impact in textile research which will bear highly positive results for UET and Archroma. Our academic team has already collaborated with Archroma on projects that will have a far reaching impact on the textile industry. We are very enthusiastic about formalizing our mutual relationship and look forward to interesting research outcomes. Industrial liaison of students will create confidence and the training, internships and working sessions will benefit them in their career development,” Prof. Dr. Fazal Ahmed Khalid commented.

India is a very important market for the German textile machinery industry, with an export of more than €255 million (+ 8 %) in 2017. Many German machinery builders have longstanding relations with Indian customers and quite a number of them also provide production plants and training centres in India. Not surprisingly, about 370 decision-makers and experts from the textile and nonwoven related industry attended the VDMA conference and B2B event called “German Technology meets Indian Textiles and Nonwovens” in Mumbai on 15-16 May 2018 (www.germantech-indiantextile.de).

According to a survey, both the event and German textile machinery engineering received the highest marks among the visitors. About 57 % of the visitors stated very good and 38 % good experience with machines and components from German suppliers. The performance and service promise as well as the high-quality standards have made German machine suppliers as most reliable partners in India and other countries. This positive result has by far not been reached by any other manufacturing nation from Europe or Asia. Asked for future processes, investments in technical textiles and/or nonwoven production seem to be the most favorite sectors in India. Around 74 % of the visitors plan to expand their production capacities with new machines and components whereas 26 % intend to replace old machinery by new machines and components. High productivity, after-sales service, end-product quality, low operating and acquisition costs are the decisive machine procurement criteria in this order. The investments plans are based on a positive business and investment outlook in India. 45 % of the visitors surveyed plan to invest more than 10 % within the next 12 months and 30 % up to 10 %. 25 % of the visitors expect a sales increase by more than 10 % for the next 12 months and 60 % anticipate a sales growth of up to 10%.

Considering this positive business climate and the high interest from the Indian industry, the 32 well-known VDMA members participated in the conference have good chances to offer the right technologies and to place new orders. The presented technology topics along the entire textile value chain will help the Indian industry to fulfill their expansion plans and to meet the challenges such as rising salary costs and shortage of labor in industrial regions. The major cutting-edge topics of the conference program were as follows:

•    Higher profits throughout the entire textile value chain
•    Energy, material, water and dyestuff savings for an environmentally friendly production
•    New applications such as technical textiles, nonwovens (e. g. hygiene products) or home textiles (e. g. terry towels)
•    Automation, industry 4.0, digital communication and smart factory solutions
•    Quality improvements e. g. with measurement and control systems
•    Lower investment costs in spinning preparation with integrated draw frames
•    New technologies to combine spinning and knitting
•    Smart textiles and added value products e. g. with embroidery machines

Whereas the event on 15-16 May 2018 focused on customers, a training session at the prestigious Veermata Jijabai Technological Institute VJTI in Mumbai on 17 May 2018 was addressed to future engineers. More than 220 textile manufacturing and mechanical engineering students followed the technical presentations. The VDMA's contribution to improve the education of future customers and partners was very much appreciated.