From the Sector

• Full-width automated cleaning system will be installed on high-graphics corrugated presses

Baldwin Technology Company Inc. has successfully landed three new FlexoCleanerBrush orders, with a total of 16 cleaning heads, from customers in the US and Germany. During the COVID-19 pandemic, Baldwin has delivered a total of 30 FlexoCleanerBrush cleaning heads, thanks to close collaboration between onsite team members, local agents, the company’s global sales organization, and support from its product and technology center in Germany. With the FlexoCleanerBrush system, an inline cleaning station installed within each print unit uses a brush that runs the full width of each printing plate. Paired with a precision spray application system, the FlexoCleanerBrush evenly distributes a mixture of detergent and water across the plate as it spins, gently cleaning its surface. The plates are then dried by the integrated air knife.

“With two of the recent orders, the customers had already installed the FlexoCleanerBrush in other locations. One of them reported as much as a 30 percent production capacity increase, thanks to the  installation,” said Lee Simmonds, Regional Sales Manager at Baldwin. “Both customers have experienced insufficient results with their original traversing cloth cleaning systems, which will now be removed and replaced with the full-width, stand-alone, automated FlexoCleanerBrush technology from Baldwin.”

Improving sustainability is one of the key drivers for investments in the corrugated printing industry. The FlexoCleanerBrush dramatically cuts water waste by cleaning plates more efficiently. In a recent independent study that was conducted to validate the capacity of the automated system, the FlexoCleanerBrush could fully clean and dry all printing plates in less than four minutes and pick hickeys in seconds.

Besides offering efficient cleaning during runs and fast end-of-job cleaning, the FlexoCleanerBrush system also enables operators to remove dry plates from the machine without the potential risk of plates sticking together once they are placed back in the plateracking system. This helps to ensure increased board throughput, less downtime and a safer working environment by eliminating operators’ contact with nip points, moving parts and chemicals.

Kornit Digital announced United Kingdom-based Tayprint has implemented the Kornit Avalanche HD6 system for efficient, versatile direct-to-garment (DTG) apparel production on demand. This technology effectively replaces the use of screen printing within their operation, reducing their cost per print while making short runs profitable, eliminating inventory and resource waste, speeding production, and ensuring nearly unlimited design capabilities, applied to a broad array of materials, using a single eco-friendly ink set.

While Tayprint predominantly serves as a provider of large-format digital printing, delivering approximately 500,000 square metres of imprinted product annually, they had established a screen-printing operation, as well, generating roughly £200,000 in t-shirt sales per year. While this provided a strong profit channel, screens offered limited growth potential, as order volumes were shrinking, customers demanded quick turnaround, graphic capabilities were limited, and setting up was a drain on both labour and materials. Each of these drawbacks are addressed by Kornit’s on-demand digital production technology, which enables suppliers to imprint apparel in any quantity, using a single-step process, completing the process in mere minutes.

• SGL Carbon supplies first plants with DIN EN1591-1 tightness certification to the chemical industry
• First column already delivered to major European customer

In plant operation in the chemical industry, the tightness of flanged joints is becoming increasingly important when dealing with aggressive and corrosive operating media. In accordance with European Union requirements, the German government has defined new requirements in the first administrative regulation to the Federal Immission Control Act (BImSchG), which will apply from January 2021. SGL Carbon is the first manufacturer of PTFE-lined columns to be able to provide the required proof of tightness according to DIN EN 1591-1 and has already delivered the first column with the new certification to a major European customer.

Specifically, the Technical Instructions on Air Quality Control (TA-Luft) of the Federal Immission Control Act (BImSchG) prescribe new, stricter emission values (leakage class L0.01) for keeping the air clean, which must be complied with when operating plants requiring a permit. In order to be able to guarantee the technical tightness of steel/PTFE flanged joints, SGL Carbon, together with a working group of other companies, first determined the EN 13555 sealing characteristic values, which reflect the material-specific PTFE properties as well as the characteristic manufacture and shaping of the linings. With these characteristic values integrated in a database, SGL experts were able to perform realistic DIN EN 1591-1 calculations for flanged joints of a packed column lined with POLYFLURON PTFE and prove the tightness in accordance with TA-Luft. The design, final acceptance and pressure tests in accordance with Directive 2014/68/EU (PED) were successfully certified by a recognized notified body.

"With the rapid implementation of the new  tightness requirements for columns, our solutions offer customers further significant added value, which is currently also being applied to other products. Our sales team and technical service are available to provide customers with comprehensive advice on the new directives and our products," explains Ralph Spuller, Director Product Management in the Process Technology (PT) Business Unit at SGL Carbon.

• Combined HCl acid and steam generation enables significant energy savings and increased cost efficiency

SGL Carbon delivered a Hydrochloric Acid (HCl) synthesis unit with integrated steam generation to Travancore-Cochin Chemicals Ltd. (TCCL), a major producer in the chlor alkali business in South India. End of January, TCCL officially inaugurated its plant in Kochi in India’s Kerala state. Since then, the unit has already been ramped up at the customer’s site to full capacity.

The synthesis unit uses the efficient membrane wall technology and has a capacity of 60 tons of HCl per day. As an additional benefit, this innovative design enables the recovery of waste heat generated in the synthesis unit from the reaction of Hydrogen & Chlorine to produce up to 33 tons of steam at the high pressure of 10 bar every day. This steam can be used elsewhere in the chlor alkali plant, for example when concentrating caustic to flakes. As a result, the energy efficiency of TCCL’s plant goes up substantially since a huge portion of their steam demand can be covered by SGL’s unit. Thereby this helps to save costs as well as reduces CO2 emissions by more than 1.500 tons per year potentially.

The HCl synthesis has been completely engineered and produced at SGL’s production site in Pune, India. Scope of supply also included civil modification services at the customer site on a turnkey basis.

 “Our innovative combined HCl synthesis and steam production units offer a great business value to our customers in the growing Indian chemical market. Together with our proven technical and engineering competence on a global scale we can help our customers to enhance their energy efficiency as the example of TCCL shows”, comments Suneet Sangam, Sales Manager at SGL Carbon India.

“By engineering and producing our units also at SGL’s production site in India, we further strengthen our position as a global process solution provider for corrosive applications leveraging our extensive expertise from our worldwide network. Realizing such ambitious projects in these challenging times of Covid restrictions shows how capable our global team is.“ says Christoph Koch, Director Sales EMEIA at SGL Carbon.

Order Intake Continued to Recover in the Fourth Quarter of 2020:

• Order intake increased to CHF 215.1 million in the fourth quarter of 2020 and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales expected
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee

Rieter posted a globally and broadly supported order intake of CHF 215.1 million in the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020 after the slump in demand in the second quarter continued (order intake second quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds to a decrease of 31% compared to the previous year.

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

As expected, as a consequence of the economic effects of the COVID-19 pandemic, the Rieter Group closed the 2020 financial year with considerably lower sales than in the previous year. According to the first, as yet unaudited figures, total sales of CHF 573.0 million were achieved, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million).

Order Intake by Business Group
All three business groups were affected by the slump in demand in the second quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order intake in the third and fourth quarters of 2020, the weak second quarter was only partially offset.

The Business Group Machines & Systems was particularly hard hit by the effects of the pandemic, with a year-on-year decline of 35%. The Business Groups Components and After Sales each recorded a 24% reduction in order intake.*

Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in all three business groups. Accordingly, reluctance to invest and deferred deliveries by customers caused sales in the Business Group Machines & Systems to decline by 24% compared to the previous year.

Due to COVID-19, a large number of spinning mills stopped production worldwide. This led to low demand for spare parts and wear parts, especially in the second and third quarters of 2020. Accordingly, compared to the previous year, sales in the Business Groups Components and After Sales fell by 24% and 27% respectively in the 2020 financial year.*

Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a consequence of the COVID-19 pandemic.*

EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019: 11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31, 2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in the mid three-digit million range.

First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the first half of 2021 to be below the break-even point.*

Change to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding Ltd. has appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.*

Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur on April 15, 2021.*

*See attached document for more information.

Since 1 January 2021, Thomas Beller has been responsible for the sportswear division of the Digel brand in the newly created position of HEAD OF SPORTSWEAR.

Thomas Beller was responsible for the sportswear of the Strellson brand for many years.
Most recently, he was responsible for the product and design of the Navy Boot brand.

"We are pleased that we have been able to win Thomas Beller, an experienced leader in the field of product and design, for the Digel brand. With his expertise, Mr Beller will help us to successfully implement the growth strategy for the Digel brand," says Marc Svojanovsky, Board Member for Product, Marketing and Sales.

Ralf Kammerer will continue to be responsible for formal wear at Digel as HEAD OF FORMALWEAR. Both report directly to the board member Marc Svojanovsky.

Flax has accompanied people for thousands of years, in linen fabrics, in ropes, as insulation material. And until the present day. With woven tapes made of flax, vombaur makes the functional and ecological advantages of natural fibres available for lightweight design.

Lightweight and firm
Flax fibres are particularly rigid and tear-proof. Textiles made of the natural material therefore give natural fibre reinforced plastic (NFP) special stability. Additionally, flax has a low density. The components thus combine high rigidity and strength with low weight. Another functional plus: natural fibre reinforced plastics are less prone to splintering than glass fibre reinforced plastics.

Sustainable material
The cultivation of flax binds CO2 and the production of NFP generates 33 percent lower CO2 emissions than conventional fibre reinforced plastics. The energy consumption is 40 percent lower. This reduces production costs and improves the material's CO2 footprint. Punch-packing arguments for natural fibre tapes – like flax tape by vombaur – in lightweight design applications.

Circular Economy
Circular Economy – this also works in lightweight design. The number of recycling cycles without loss of quality is higher for natural fibre reinforced plastics than for glass or carbon fibre reinforced plastics: the thermoplastic matrix of the composite can be melted and recycled after a product life cycle. The natural fibres can "live on" in other products – injection moulded products for example.

Versatile applications
"Composites from our flax tapes are used to reinforce high-tech skis as well as for extruding state-of-the-art window sections – the applications are countless," explains Tomislav Josipovic, Sales Manager with vombaur. "As a development partner, we support applications for the automotive, wind energy, construction, sports and many other industries with our composite textiles."

In pandemic year 2020 circular knitting machine manufacturer Mayer & Cie. (MCT) has further improved its leading position in Turkey. So the country continues to be one of the company’s strongest and most consistent sales markets. Even in difficult years, the manufacturer and its longstanding Turkish representative Mayer Mümessillik have achieved positive results. The reasons for this year’s success, as Mayer & Cie. sees it, are the transfer of production to locations close to Europe, Turkey’s state-of-theart machinery and the increase in demand for comfortable clothing that is suitable as home office wear.

Turkish market is a growth market despite corona setback
“Compared to 2019, we anticipate a growth in the Turkish market even though the corona situation was a serious setback in the second quarter of 2020,” says Stefan Bühler, Mayer & Cie.’s regional sales manager for Turkey.

Mayer & Cie. got off to a strong start on the Bosporus in the first quarter of 2020 with additional positive effects until mid-March. This was due to a desire for production locations close to Europe. In the second quarter, during the lockdown, demand largely ground to a halt. Government measures helped to cushion the downturn. Says Ahmet M. Öğretmen, general manager of MCT’s Turkish sales partner Mayer Mümessillik: “In the second quarter, GDP was down by about 10 percent, so we got off lightly.”

Since July 2020, orders for Mayer & Cie. circular knitting machines have bounced back again. Ahmet M. Öğretmen sees an interplay of reasons for this recovery. The main reason, he says, is the low exchange rate of the Turkish lira, which has boosted exports of ready-made textiles. The Turkish daily Hürriyet reports, with reference to the Turkish state news agency, 11 percent year-on-year growth in August 2020. The most important export markets, the newspaper says, are Germany, the UK and Spain. Between them, they account for around half of exports totalling € 1.27 billion.* “This demand must be fulfilled,” Öğretmen says. “That leads to investment in machinery by manufacturers.”

Relanit is synonymous with single jersey
The machines of choice for Turkish knitwear manufacturers are regularly Mayer & Cie. machines. The long-established German firm’s share of the Turkish market is substantially higher than in other markets. The manufacturer’s position is particularly strong in the market for plain single jersey fabrics, with the Relanit 3.2 HS being the machine of choice. It achieves an extraordinarily high level of productivity, especially in processing elastomer yarns. It also handles a wide range of yarns reliably.

“Interlock is Mayer & Cie.”
Mayer & Cie. is one of the leader in the second major circular knitting discipline, rib and interlock fabrics. The machines used for double jersey fabrics are the OV 3.2 QCe, the D4 2.2 II and the D4 3.2 II. The OV 3.2 QCe knits interlock, 8-lock structures, spacers and fine gauge with 3.2 systems. The D4 2.2 II is another stalwart for rib, 8-lock and interlock. The 8-lock D4 3.2 II is the machine of choice for firms that want to manufacture structures such as Piqué, Punto di Roma or Thermal in addition to interlock.

The MBF 3.2 is another top seller in Turkey. A three-thread fleece machine, it knits fabrics for sportsand leisurewear such as hoodies and is very much in keeping with the trend in home office year 2020. “Comfortable clothing is circular knitted,” says Ahmet M. Öğretmen, “and we benefit from that of course.”

One of the world’s most state-of-the-art machine parks are in Turkey
Another advantage is the modernity of the Turkish machine park, which is doubly attractive in view of Turkey’s weak currency. Says Mayer Mümessillik general manager Öğretmen: “In the past 10 to 20 years there has been very heavy investment in high-quality machines. As a consequence we have the world’s youngest and most up-to-date production facilities.” Combined with geographical proximity to the main export markets in Europe that should prove a growth driver in the years ahead – and keep demand for Mayer & Cie. machines brisk and high.

*More informationen here.

An impairment charge has become necessary based on the current status of the new 5 year plan.

(Market Abuse Regulation N° 596/2014)
•    Impairment loss amounting to €80-100 million in the fourth quarter 2020 in the business unit CFM
•    Restructuring program resolved with savings target of more than €100 million until 2023
•    Guidance 2020 for Group sales and operating recurring Group EBIT confirmed
•    Guidance 2020 for net result reduced to minus €130-150 million

In the current status of the 5 year plan, which is at present under preparation, significant deviations have already become apparent today, particularly in the market segments Automotive, Aerospace and Wind Energy in the business unit Composites – Fibers & Materials (CFM). Partially also due to the pandemic, Automotive and Aerospace is developing slower than anticipated in the last 5 year plan. In contrast, business with Wind Energy is growing much stronger than previously planned. These changes in the product mix lead to lower mid-term earnings at CFM compared to the prior 5 year plan. Following these deviations from the last 5 year plan, an event-driven impairment test was undertaken. This results in a non-cash impairment charge amounting to €80-100 million, which will be recorded in the fourth quarter 2020.

The Board of Management of SGL Carbon SE today also resolved the implementation of a restructuring program, with which the Company is targeting savings of more than €100 million until 2023 (compared to the base year 2019). These savings consist of a planned socially compatible reduction in personnel of more than 500 employees and substantial reduction in indirect spend, particularly in the areas of travel, consulting and external services. Costs of approximately €40 million are anticipated for the implementation of this restructuring program. A little more than half of this is expected to be recorded as expenses in the fourth quarter 2020, while the associated cash outflows are mainly forecasted for 2021.

This requires a partial adjustment of the guidance for 2020. The solid operational development in the third quarter 2020 with Group sales between €220 and €230 million and operating recurring EBIT1 between €13 and €15 million (plus approximately €9 million positive one-time effects) is within the framework of our expectations for the full year 2020. However, the Group net result is likely to develop below the prior year level of minus €90 million and reach approximately between minus €130 and €150 million due to the restructuring provisions as well as the impairment charge (prior guidance: improvement to a negative low double-digit million € amount).

With liquidity of €167 million as of September 30, 2020 (compared to €137 million at year-end 2019) and further cash inflows in the fourth quarter 2020 from successfully implemented additional funding measures, the Company’s position is solid. This liquidity is more than sufficient for the payment of the purchase price for SGL Composites USA in the amount of USD 62 million at the end of 2020 as well as the restructuring-related cash outflows expected mainly in 2021. The Company continues to have access to the revolving credit facility (RCF) in the amount of €175 million, which remains undrawn.

The quarterly statement as of September 30, 2020 will be published on November 12, 2020 as scheduled. Further details on the new 5 year plan as well as the guidance on the fiscal year 2021 will be presented with the publication of the Annual Report 2020 on March 25, 2021.

*The use of KPIs in this notification is aligned to the annual report 2019 and the interim report for the first half year 2020. There were no changes to the scope of consolidation or to valuation methods compared to the previous guidance.

•   Mimaki Tiger-1800B MkII Printers for Faster, High-Quality Textile Printing

Amsterdam - Mimaki Europe, a leading manufacturer of inkjet printers and cutting systems, announces today that Pakistani textile company, Moti Fabrics (Pvt) Ltd., is leveraging multiple Mimaki Tiger industrial textile printing units to take its business to the next level. As a result of on the outstanding performance and process optimisation delivered by the Mimaki digital printing equipment, the company has been able to adapt to changes in the textile industry and is now projected to reinforce its market position and expand its capabilities in high-quality textile production.

Headquartered in Faisalabad, Punjab province – the second largest textile hub in Pakistan –, Moti Fabrics (Pvt) Ltd. mainly serves the high fashion industry and uses its cutting-edge technology to print about 100,000 metres daily. Faced with recent challenges in the global textile market, management at Moti Fabrics (Pvt) Ltd. embarked on innovating the company’s business model, shifting from conventional to digital printing. In doing so, the company invested in Mimaki’s advanced industrial textile technology and installed three Mimaki Tiger-1800B MkII units. “We were – and still are – experiencing a massive transformation in the printing segment, with brands demanding high quality products delivered within short deadlines. This change in our customers’ requirements urged us to move to digital printing,” says Muhammad Asif, CEO at Moti Fabrics (Pvt) Ltd. “Our choice has already proved sound as our brand-new Tiger-1800B MkII printing systems have enabled us to cope with the high standards of the fashion industry in terms of both quality and delivery times. In addition, we have been able to gradually enhance our production processes in a cost-effective way.”

The Tiger-1800B MkII is Mimaki’s flagship industrial volume textile printer, available either in dye sublimation configuration for transfer printing or with reactive ink for direct-to-textile printing. Of the three Mimaki Tiger-1800B MkII solutions operating at Moti Fabrics (Pvt) Ltd., two are equipped with reactive inks, enabling the company to directly print onto natural fibres such as cotton and linen, as well as onto manufactured cellulose fibres, including rayon and nylon. The third Mimaki Tiger-1800B MkII features sublimation inks serves the ever-growing printed polyester market, allowing the company to strategically diversify its product portfolio.

“There are several features of the Tiger-1800B MkII that benefit our production and our business at large. The MAPS (Mimaki Advanced Pass System), just to name one, prevents banding and colour-shifting to deliver a higher standard of quality, while the NRS (Nozzle Recovery System) provides uninterrupted production, minimising downtime and ensuring superior results. The sticky belt system together with the large-size ink tanks (with a capacity of 10kg) and the high-performance software RIP TxLink3 are some of the other features that make these printers efficient, user-friendly and reliable,” says Asif.

Asif concludes, “Looking at the future, our aim is to set up a print department featuring only Mimaki’s technologies. We are already considering the next steps to make this possible, knowing that we can count on the support of Signtrade, Mimaki’s dealer in the region and our trustworthy partner.”

Moti Fabrics (Pvt) Ltd. was founded in 1992 by Muhammad Asif’s father Haji Muhammad Yousaf and his partner Haji Rasheed Ahmad. Established as a dyeing company, Moti Fabrics (Pvt) Ltd. was able to gradually diversify the business over the years to become an advanced textile printing specialist. Today, the company is an established provider to the high fashion industry in Pakistan and on an international level.

“The story of Moti Fabrics is incredibly inspiring. Belonging to a region with such rooted textile printing heritage, the company has been able to embrace a new, challenging business model in order to stay at pace with the changing demand from the textile industry and has succeeded,” comments Ronald van den Broek, General Sales Manager at Mimaki Europe. “Customers like Moti Fabrics make us proud as they demonstrate how our advanced Mimaki Tiger industrial textile series can be the enabling technology for those textile companies planning the shift from conventional to digital printing.”