From the Sector

As the role of lingerie in fashion and athleisure continues to augment, the desire for garments that will meet a new set of values for contemporary consumer lifestyles will flourish.  

ROICA™ - the pioneer of innovative stretch fibres, took this year’s Interfilière visitors on an inspirational journey, aimed at encouraging weavers, designers and brands to “engineer” their portfolio of products in new and exciting ways. The company sets a whole new standard in how creativity and responsibility can come together for a new generation of wardrobe solutions dedicated to the contemporary consumer, carving out a new kind of fashion future.

Below some unique developments born from the collaboration among ROICA™ and key premium brands:

COSABELLA produced by Collezioni SRL: The brand sells in over 100 countries, with a premium collection of 2000 styles for every sector of lingerie and leisurewear. Latest styles use a delicate floral lace by Tessitura Colombo Antonio made with ROICA™ V550 belonging to the ROICA Eco-Smart™ family for their more luxurious upscaled lines.

Livy selects Iluna Group’s contemporary graphic stretch lace with ROICA™ EF for the precious “BELLAGIO” line that includes a soft triangle bralette, a padded bra, a brief and a body for optimal comfort. The must-have range has a stunning aesthetic which represents the unique appeal of this lifestyle brand.

Sarah Borghi: the worldwide known brand of luxury Italian fashion hosiery, tights, and socks. They've dedicated more than 40 years scrutinizing the finest yarns and evolving technologies and breathing flawless life into their unique range of luxurious fashion. Today, Gizeta Calze S.r.l., owner of this brand, has developed the first line made out of sustainable ingredients that will be launched at the ROICA™ booth during Interfilière. The collection, developed in Italy by Almatex, blends together key smart fibers such as ROICA™ EF and Q-Nova®, and ROICA™ V550 with  AMNI SOUL ECO®. 

Vitamin A: the Californian brand offers a unique swimwear line rooted in female empowerment. Vitamin A’s beachwear is made with the finest materials and finishes, ensuring a product that will fit and wear beautifully for years to come. Among the  incorporated more sustainable high-performance fabrics shines a unique jacquard development by Maglificio Ripa with a 3D texture made with the GRS certified premium responsible stretch ROICA™ EF and Q-NOVA® by Fulgar. Vitamin A is a member of 1% For The Planet and  donate to environmental organizations who work to protect our oceans.

Wolford was one of the first brands to explore the real value of ROICA™. Known for its exceptional European Skinwear including legwear, lingerie and bodywear, the company has been striving to develop fully degradable items at the end of the product lifecycle. On top of last year’s award for being Cradle to Cradle Certified™ at GOLD Level certification for the biological cycle, Wolford was also recognised for its technical cycle using Econyl® yarn made by Aquafil (always blended with ROICA™ V550).

Each brand Partner brings a different yarn story firmly into the limelight, and all feature ingredients from the ROICA™ portfolio of yarns respecting the company’s commitment to ‘responsible innovation’, and which all boast important sustainable certifications.

• With a turnover of EUR 513 million, the CHT Group achieved a 12% increase in sales
• The result was impaired by high raw material costs and currency effects
• Investments remain high - approximately 13 million EUR invested in production sites and new technologies worldwide
• The acquisition in silicone specialties is bearing fruit despite a shortage of raw materials on the market
• 2019 - moderately optimistic business expectations in a difficult market environment

The situation on the world market deteriorated further in 2018, not least due to the intensification of the trade conflict between the USA and China. However, the CHT Group was again able to close the financial year with an increase in turnover. With consolidated sales of 513 million EUR, the previous year's success in the Group was exceeded by 12%.

Assuming social responsibility and acting sustainably has been Autoneum's focus since it became an independent company. In order to achieve the best results possible, the Company last year has defined a number of quantitative and qualitative targets in the areas of “Sustainable Products and Production Processes”, “Fair and Attractive Workplace”, “Good Corporate Citizenship” and “Responsible Supply Chain Management” for 2025. In all these areas Autoneum has achieved important successes already in 2018.

Through the consistent implementation of environmental efficiency projects – a total of over 80 worldwide – Autoneum reduced its environmental impact further in 2018. For example, both the amount of waste (–5.9%) and water consumption (–13.4%) have fallen sharply. At the same time, various plants – particularly in Asia and North America – have expanded their recycling capacity, significantly increasing the amount of production waste reused in the manufacturing process (14.9%).

To further improve working conditions especially in production, measures were taken in all Business Groups in 2018 to enhance occupational health and safety and well-being in the workplace. A global employee satisfaction survey conducted in fall last year has confirmed the first positive effects of these measures.

A complete overview of all targets and activities during the past year can be found in the Corporate Responsibility Report 2018 and is available at www.autoneum.com/corporateresponsibility/.

First showing of game-changing technology at a European tradeshow includes the recently launched Kornit Atlas, Kornit Avalanche Poly Pro and Kornit Presto
Kornit Digital (Nasdaq: KRNT), a worldwide market leader in digital textile printing technology, has announced details of its corporate presence at Fespa 2019 which will take place in Munich, Germany, May 14-17.

Kornit’s exhibit will focus on the game-changing technology that was unveiled in the beginning of the year and will now be on display for the first time in a tradeshow in Europe: the Kornit Atlas and the Kornit Avalanche Poly Pro. The presence will be complemented by a Kornit Storm HD6, a direct-to-fabric sample area featuring prints from Kornit’s upcoming Presto system and an installation of Colorgate’s Textile Production Server for Kornit.

The Kornit Atlas is a heavy-duty system created for super-industrial garment decoration businesses. It is designed to deliver a typical annual production capacity of up to 350,000 impressions, optimizing production efficiency and cost of ownership. The Kornit Atlas is aimed at highly productive garment decorators, mid to large size screen printers and innovative businesses looking to combine state-of-the art technology with lowest cost of ownership, making it easier than ever to address the requirements of leading and mid-sized brands, as well as new generation digital brands. The Kornit Atlas uses water-based Kornit NeoPigmentTM Eco-Rapid Inks which are eco-friendly, GOTS approved and OEKOTX certified, and serve as the main driver of the retail quality prints.

At the Texprocess trade fair in Frankfurt/Main, Germany (May 14th to 17th 2019) VEIT Group will present on more than 400 m² the latest highlights in the areas of ironing, finishing, pressing and fusing in the garment industry as well as automotive and interior sectors.

"Pressing for Excellence" is the corporate slogan of the VEIT Group. In addition, this year's motto at Texprocess is "LOVEIT" which is a wordplay on "love it" or “love VEIT”. In the words of VEIT Group President Günter Veit: “Our motto stands for the passion that we have for the engineering of our products, our love of perfection and our devotion to our customers. This is the basis of their trust in our products. We want to offer our customers value not only now, but also for the future which we believe will be more digital and more sustainable. Both Industry 4.0 readiness, as well as the good of operator and environment are essential components of our product development efforts.”

Among the large portfolio of high-performance technology presented at the trade show, there is a significantly improved shirt finisher SF 26. With the new model SF 26, VEIT manages to further increase both the functionality and the ergonomics of the shirt finisher. For the customer, this optimisation in application technology is reflected in higher quality of the finished product and simplified operation.

Combined with the improved FS shirt folding table series – a highly successful product – VEIT offers true streamlining potential while maintaining high quality levels when folding shirts, blouses and polos in 3 versions.

Reacting to the customers’ demands, VEIT has equipped their popular BX fusing machines – BXT, the universal solution for shirts and outerwear – with a separate feeding belt and a 7” colour operating panel. These changes make the BX fully industry 4.0 ready and helps to further improve the ergonomics and energy efficiency.

In order to increase flexibility in the shaping of textiles, VEIT will present a new solution for high-quality finishing of the elbow seam in the area of BRISAY machines – the BRI 860 VC sleeve seam finish pressing machine. The 8430 universal multiform finisher was enhanced to cover an even wider range of applications. It can now also be used for finishing, among other items, also polos, T-shirts, blouses, blousons and jackets.

In addition to the innovative machine highlights, VEIT has also developed special solutions for customers' investment decisions. "More and more companies that are making investments are not only looking at the purchase price, but rather at the total lifetime cost of ownership," explains Vice President Christopher Veit. VEIT is presenting two interesting offers to meet this trend:
Customers may choose to buy a machine according to the “Pay Per Piece” system, which means that they pay for how much the machine is used, instead of a full up-front investment. This reduces the investment risk and allows more flexible reactions to especially to scalable business opportunities. Alternatively, when purchasing a machine the traditional way, customers can limit operating costs, extend the machine’s lifespan and achieve improved machine availability by signing a service contract. With its global service and partnership network, VEIT Group can offer this service worldwide.

With over 5,000 tailored installations for a range of industries installed in over 60 countries, Eton Systems, headquartered in Gånghester, Sweden, has established a reputation as a clear leader in the field of complete material handling systems.

At ITMA 2019 in Barcelona from June 20-26th, the company will be demonstrating a complete installation based on a future production concept, with advanced software providing real-time information covering every aspect of the process.

“Our systems are a natural fit with the major Industry 4.0 networked manufacturing plants that are now being constructed worldwide for sectors such as the garment and home textiles manufacturing and automotive industries,” says Eton’s Sales and Commercial Director Roger Ryrlén. “We have had a very busy last 12 months, with more major projects in the pipeline. We understand, however, that one solution does not fit all situations, which is why we think in terms of custom-made solutions matched to specific customer needs. Buying a system from us, is buying a solution and a partnership. Each system includes support, service, training and knowledge built on more than 70 years of experience. When a customer invests in an Eton System the increased efficiency normally results in savings of between 40-60%.”

A typical system consists of overhead conveyors with individually-addressable product carriers which automatically steer their way through programmed operation sequences. They are monitored by a computer providing all the necessary data for optimally measuring and managing processes. The systems are also highly flexible and can be rapidly modified to changes in the production line or the need for expansion.

Options for smart factories
Eton’s Flexible Productivity Concept (FPC) is based on two system platforms with a wide range of options, including:

• Multiple rails for sorting at workstations.
• Buffering
• Automatic loading devices, pick-ups and work delivery robots.
• Bridges and elevators that link systems and floors.
• Historical links to products after completion.
• Module-based software.

Via an addressable product carrier, an Eton system transports all the components of a complete product through the manufacturing process.

Eton Systems will be at stand A214, in Hall 2 at the Barcelona exhibition.

Gianluca Croci's priority will be to support Lectra's French customers in their transformation towards Industry 4.0
Lectra announces the appointment of Gianluca Croci as Managing Director, Lectra France. Based in Paris, Gianluca Croci reports to Fabio Canali, President, Southern Europe & North Africa.

Gianluca Croci has more than 20 years of experience in the fashion industry. He began his career in 1998 in the department store chain La Rinascente before joining the Giorgio Armani group in 2002, where he managed, from 2006 to 2015, the Belgian and French subsidiaries. Gianluca Croci later held management positions for major fashion and luxury brands, such as Roberto Cavalli and Marcolin, and was recently the Sales & Marketing Director for Technogym France, a designer of sports equipment.

Gianluca Croci will fulfil Lectra's promise to fashion companies in France: to facilitate the digitalization of their know-how in order to empower them to make a successful transition to Industry 4.0. This ambition is being realized by the 2018 launch of the revolutionary solution, Fashion On Demand by Lectra, which enables fashion companies to customize a garment or make it to measure. This end-to-end personalization offer—the first of its kind—complements a portfolio that is known to solve the pressing challenges confronting the fashion industry. The latest, Kubix Link, developed by Kubix Lab, a start-up acquired by Lectra in January 2018, is an innovative platform for managing product information.

"France is known worldwide for being a leader in fashion and technological innovation. It is a country where brands, retailers and manufacturers have already begun their transformation towards Industry 4.0. I am proud to support our customers’ pursuit of greater connectivity and collaboration in their operations, as well as in assisting them to make the shift to personalization," says Gianluca Croci.
Gianluca Croci and his teams are committed to providing their French customers with the high level of expertise and service that characterizes Lectra's value proposition.
Gianluca Croci's efforts are also tied to the dynamic activities of Lectra Southern Europe & North Africa. There are many synergies in the region’s fashion industry, ranging from the sharing of expertise between French and Italian companies to the integration into their ecosystem of the Moroccan and Tunisian subcontractors.

"Our regional organization enables us to be closer to our customers’ challenges and to provide them with the support they need to achieve their ongoing targets. Gianluca Croci will lead the French teams and contribute to the region's growth," says Fabio Canali. "His extensive experience with major Italian and French companies brings new energy to the development of Lectra France.”
Gianluca Croci is a graduate of the European Institute of Business Administration (INSEAD), Fontainebleau (France), and the Catholic University of the Sacred Heart, Milan (Italy).

Emphasis on Process, Third-Party Validation and Outcome-Based Testing

Canadian Linen and two U.S. AmeriPride Services Inc.’s locations have recently earned have earned the Hygienically Clean Food Safety certification, reflecting their commitment to best management practices (BMPs) in laundering as verified by on-site inspection and their capability to produce hygienically clean textiles as quantified by ongoing microbial testing. The company’s Canadian Linen and Uniform Service facilities in these locations have earned the Hygienically Clean Food Safety certification:  

• Alberta: Edmonton and Lethbridge
• British Columbia: Victoria and Vancouver/Burnaby
• Manitoba: Winnipeg
• Nova Scotia: Halifax
• Ontario: Etobicoke, London, North York and Ottawa
• Quebec: Quebec City
• Saskatchewan: Regina and Saskatoon

The recently-certified U.S. AmeriPride laundries are located in Vernon, Calif. and Durant, Miss.  
The certification confirms the laundry’s dedication to compliance and processing garments and linens using BMPs as described in its quality assurance documentation, the focal point for inspectors’ evaluation of critical control points (CCPs) that minimize risk. The independent, third-party inspection must confirm essential evidence that:

• Employees are properly trained and protected
• Managers understand legal requirements
• OSHA-compliant
• Physical plant operates effectively

In addition, these facilities each passed three rounds of outcome-based microbial testing, indicating that their processes are producing Hygienically Clean garments and other reusable textiles with diminished presence of harmful bacteria. To maintain their certification, laundry plants must pass quarterly testing to ensure that as laundry conditions change, such as water quality, textile fabric composition and wash chemistry, laundered product quality is consistently maintained.
This process eliminates subjectivity by focusing on outcomes and results that verify textiles cleaned in these facilities meet appropriate hygienically clean standards and BMPs for animal processing, dairies, fruit/vegetable, bakeries, grain and other food and beverage industry segments.
These Vernon, Calif. and Durant, Miss. locations of the AmeriPride chain join these laundries who have previously received the Hygienically Clean Food Safety certification:

• Tuscumbia, Ala.
• Bakersfield and Fresno, Calif.
• Twin Falls, Idaho
• St. Cloud and Minneapolis, Minn.
• Amarillo Texas

Hazard Analysis and Critical Control Points (HACCP) practices are examined in the Hygienically Clean Food Safety inspection process, evaluating the plant’s techniques for:

• Conducting hazard analysis
• Determining CCPs, monitoring their control, correcting them if not under control
• Validating and verifying HACCP system effectiveness
• Documenting and record-keeping to show ongoing conformance

On-site inspections also evaluate practices relevant to handling and processing textile products used in food manufacturing/processing establishments for adherence to U.S. Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) directives. Introduced in 2014, Hygienically Clean Food Safety brought to North America the international cleanliness standards for laundering garments and other textile products for food manufacturing used worldwide by the Certification Association for Professional Textile Services and the European Committee for Standardization.
Twelve of the company’s U.S. locations have achieved the Hygienically Clean Healthcare certification:

• Little Rock, Ark.
• Phoenix and Watkinsville, Ga.
• Twin Falls, Idaho
• Topeka, Kan.
• Bemidji and Minneapolis, Minn.
• pringfield, Mo.
• Omaha, Neb.
• Roswell, N.M.
• Memphis, Tenn.
• Lubbock, Texas

The company’s Canadian Linen and Uniform Service facility in Lethbridge, Alberta, is also Hygienically Clean Healthcare-certified.
In January 2018, Philadelphia-based Aramark Corp. announced the completion of its acquisition of AmeriPride, making AmeriPride a wholly owned subsidiary. Aramark’s uniform rental and career apparel business is headquartered in Burbank, Calif.

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.

The Lenzing Group intends to acquire the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The underlying structured selling process was initiated by the joint venture partner in a state controlled bidding process and today the Lenzing Group received the Share Purchase Agreement draft. The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group 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.