From the Sector

• Innovation begins with creativity
• A pioneer of the manmade fiber industry

When the manmade fiber age began a century ago, a German company was responsible for the pioneering work involved. Barmag, established in 1922, was one of the world’s first companies to construct machines for the large-scale production of synthetic staple fibers. To this day, the leading manufacturer of manmade fiber spinning systems and texturing machines in Remscheid – a brand under the aegis of the Swiss Oerlikon Group since 2007 – has shaped technological progress in this sector; in future, with ever more innovations focusing on sustainability and digitalization.

Barmer Maschinenfabrik Aktiengesellschaft (Barmag) is founded in Barmen, located in the Bergische Land region, on March 27, 1922. The German and Dutch founders enter unchartered technological territory, one created as the result of a groundbreaking invention: in 1884, French chemist Count Hilaire Bernigaud de Chardonnet used nitrocellulose to produce the first so-called artificial silk, later known as rayon. The following decades see rapid development focusing on the search for synthetic textile fibers and their manufacturing technologies. As one of the first machine factories, Barmag battles its way through the eventful early years of the manmade fiber industry, the ‘Roaring Twenties’ and the Great Depression – and suffers the extensive destruction of its factories at the end of World War Two. Rebuilding is successful. With the unstoppable success story of purely synthetic plastic fibers such as polyamide, the company flourishes from the 1950s through to the 1970s, establishing sites in all international, for the textile industry at the time important, industrial regions and garnering prestige across the globe in the process. In the ups and downs of expansion, global competition and crises, Barmag reaches the very pinnacle of the market and becomes the preferred technological development partner for the manmade fiber industries in China, India and Turkey. The company has been a high-impact brand under the umbrella of the Oerlikon Group since 2007.

On the wings of innovation
Today, Oerlikon Barmag is a leading supplier of manmade fiber filament spinning systems and part of the Manmade Fibers Solutions business unit of the Oerlikon Polymer Processing Solutions Division. And our aspirations have not diminished: “The striving towards innovation and technological leadership has been, is and will always be part of our DNA”, emphasizes Georg Stausberg, CEO of Oerlikon Polymer Processing Solutions. In the past, this has been observable in such trailblazing innovations as the revolutionary WINGS generation of winders for POY in 2007 and WINGS for FDY in 2012. Currently, the focus of new and further developments is very much on digitalization and sustainability. Here, Oerlikon Barmag has – as one of the world’s first systems manufacturers – been implementing fully-networked smart factories for globally-leading polyester manufacturers since the end of the last decade. Within this context, digital solutions and automation are also helping to provide greater climate and environmental compatibility. This sustainability commitment is not only evidenced by the e-save label introduced for all products back in 2004: Oerlikon is endeavoring to also make all its sites carbon-neutral by 2030 and to acquire its energy exclusively from renewable sources. An ambitious target, whose achievement could be helped by the Oerlikon Barmag anniversary, states Georg Stausberg: “Innovation begins with creativity. And remembering the past provides plenty of motivation and inspiration for the future.”

• Order intake of CHF 2 225.7 million at record level
• Sales of CHF 969.2 million despite bottlenecks in the supply chains
• EBIT margin of 4.9% and net profit of 3.3% of sales
• Milestones achieved in strategy implementation
• Dividend of CHF 4.00 per share proposed
• Outlook

The 2021 financial year was characterized by a rapid market recovery. As market and technology leader, Rieter succeeded in this environment in posting a record order intake, significantly increased sales compared with the previous year despite the bottlenecks in the supply chains, and generated an EBIT margin of 4.9%. This success is based on the investments in innovation and competitiveness of Rieter in recent years. Crisis management in the 2020 pandemic year, which aimed at benefiting from the expected market recovery after the pandemic, was also a contributing factor. With the acquisition of three businesses from the Saurer Group, a further milestone in the implementation of the strategy has been achieved. The acquisition strengthens Rieter’s market position by completing the ring and compact-spinning system. With the laying of the foundation stone for the Rieter CAMPUS in September 2021, an important prerequisite for the expansion of the company’s technology leadership has been created.

Order Intake and Sales
At the end of 2021, the company had an order backlog of around CHF 1 840 million (December 31, 2020: around CHF 560 million). Rieter closed the 2021 financial year with sales of CHF 969.2 million, which corresponds to an increase of 69% compared to the previous year (2020: CHF 573.0 million).

EBIT, Net Profit and Free Cash Flow
The profit at the EBIT level in the 2021 financial year was CHF 47.6 million, which represents 4.9% of sales. At the net profit level, a profit of CHF 31.7 million accrued, which corresponds to 3.3% in relation to sales. Free cash flow at CHF 128.1 million is a result of the positive developments in earnings and net working capital. The acquisition of three businesses from the Saurer Group for a purchase price of CHF 321.4 million resulted in net debt of CHF 161.9 million; as of December 31, 2020, net liquidity amounted to CHF 41.3 million. At December 31, 2021, liquid funds amounted to CHF 249.4 million (2020: CHF 283.2 million). The equity ratio as of December 31, 2021, was 27.6% (previous year’s reporting date: 36.4%).

Sales by Region
Sales increased in all regions, with the exception of Africa. The highest growth of CHF 126.0 million compared to CHF 50.8 million in the previous year was achieved in India, followed by North and South America with CHF 149.9 million in 2021 compared to CHF 66.4 million in the previous period, and the Asian countries excluding China, India and Turkey with CHF 318.7 million (2020: CHF 184.8 million). In Turkey, Rieter increased sales to CHF 182.3 million (2020: CHF 122.0 million), in China to CHF 135.3 million (2020: CHF 92.8 million) and in Europe to 43.3 million (2020: CHF 38.4 million). In Africa, sales were below the prior-year level at CHF 13.7 million (2020: CHF 17.8 million).

Business Groups
Despite the well-known challenges in the supply chain, the Business Group Machines & Systems posted an order intake of CHF 1 708.6 million (2020: CHF 363.9 million) and achieved sales of CHF 590.3 million, double the previous year’s figure (2020: CHF 295.8 million). Ring and compact-spinning systems, on whose customer benefits Rieter has worked intensively in recent years, were particularly in demand.
The order intake of the Business Group Components was CHF 296.0 million, 75% above the previous year’s level (2020: CHF 169.1 million). Against the backdrop of successful strategy implementation and good capacity utilization at spinning mills worldwide, sales increased to CHF 231.5 million (2020: CHF 174.3 million). The Business Group After Sales recorded an order intake of CHF 221.1 million, 106% higher than the previous year (2020: CHF 107.2 million). Sales reached a level of CHF 147.4 million (2020: CHF 102.9 million). The positive evolution of the Business Group After Sales was also significantly influenced by successful strategy implementation and good capacity utilization at spinning mills around the world.

Acquisition of three Saurer businesses
Effective from December 1, 2021, Rieter is consolidating the components businesses acquired from Saurer. With the acquisition of Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines), Rieter is strengthening its market position in the components business. The acquisition of the third business from Saurer (automatic winder) completes and thus considerably increases the attractiveness of Rieter’s ring and compact-spinning system. This acquisition marks an important milestone in the implementation of the company’s strategy as an innovative systems supplier. The transaction is expected to be finalized in the first half of 2022.

Rieter CAMPUS
On September 8, 2021, at the Winterthur location, the foundation stone was laid for the Rieter CAMPUS, which includes a customer and technology center as well as an administration building. With the Rieter CAMPUS, the company is creating a state-of-the-art and creative working environment, ensuring access to cutting-edge European technology and enhancing its ability to attract young talent. Thus, the Rieter CAMPUS will make an important contribution to the implementation of the innovation strategy and to the enhancement of the company’s technology leadership position.

Dividend
In view of the profit of CHF 31.7 million at the net profit level in the 2021 financial year, the Board of Directors proposes to the shareholders for 2021 the distribution of a dividend of CHF 4.00 per share. This corresponds to a payout ratio of 57%.

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

Board of Directors and Annual General Meeting
At the 130th Annual General Meeting held on April 15, 2021, the shareholders approved all motions proposed by the Board of Directors. The Chairman of the Board Bernhard Jucker and the Directors This E. Schneider, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for a further one-year term of office. Stefaan Haspeslagh was newly elected to the Board of Directors for a one-year term of office. This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Changes to the Board of Directors
The two members of the Board of Directors, Luc Tack and Stefaan Haspeslagh, resigned from Rieter’s Board of Directors with effect from August 30, 2021.

Outlook
Rieter anticipates a gradual normalization of the demand for new systems in the coming months. The company expects demand for wear and spare parts to remain at a good level due to high capacity utilization at spinning mills. For the full year 2022, due to the high order backlog and the consolidation of the businesses acquired from Saurer, Rieter anticipates sales of around CHF 1 500 million. Sales in the second half of 2022 are expected to be higher than in the first half of the year. The realization of sales from the order backlog continues to be associated with risks in relation to the well-known bottlenecks in the supply chains, the ongoing pandemic and the geopolitical uncertainties. Despite the price increases already implemented, the rise in global costs poses a risk to the development of profitability.

Baldwin Technology Company Inc. announced that Oliver Jentschke, an industrial engineer with a long track record as a customer-focused sales leader, has joined the organization as Vice President of Sales for Europe. His experience leading and developing commercial teams, along with his results-driven approach and passion for enhancing the customer experience, will be instrumental as he builds and delivers Baldwin’s print sales strategy across Europe.
 
Jentschke is a highly skilled commercial leader, most recently working for ratioparts GmbH (part of Arrowhead Engineered Products), where he was the Sales Director for Europe. Prior to that, Jentschke was the Sales Director for Oerlikon and ROFIN-LASAG AG. He also spent time as the Business Development Manager for Rotoflex/Mark Andy Inc., where he and his sales team drove revenue growth and market expansion throughout Europe. Jentschke received an industrial engineering degree from the University of Cologne in Germany.

Just under a year ago, the EREMA Group started to repurpose the premises of Gruber & Kaja in St. Marien, which they took over as a reserve site in January 2021. In the meantime, a lot is going on there.

"When this site came up for sale, it only took us a few days to decide to buy the 40,000m² plot, including the workshop hall, which has an area of 15,000m²," says Manfred Hackl, CEO of EREMA Group GmbH. Around EUR 20 million was invested in the purchase, as the site offered the opportunity to increase production capacity by 60 percent in the immediate vicinity of the company headquarters in Ansfelden.

The fact that this site is now already being used so intensively was not envisaged at the time, because at the end of 2020 the company was just completing the expansion to their headquarters in Ansfelden, involving an investment of around EUR 17 million. 20 new jobs have already been created as a result, with a further 30 to follow in the next few months. By the time the new site is completed, the total number of new jobs will be up to 150.

This development is due to the high demand for the EREMA Group's plastics recycling technologies and the trend towards ever-larger recycling plants. "Just in December, we delivered a VACUREMA® system to Brazil that will produce up to 40,000 metric tonnes of recycled PET (rPET) per year. That is equivalent to recycling around 1.1 billion 1.5-litre PET bottles. This site provides the perfect conditions for building this scale of machine," says Hackl.

Markus Achleitner, Upper Austria's Minister for the Economy, was also impressed by this development during his visit to St. Marien. "There is hardly any other region in the world that focuses as closely on materials expertise and the circular economy as in Upper Austria. We want to fully exploit this potential with our #upperVISION2030 business and research strategy. EREMA is an important driver in this industry. It makes me all the more pleased that the company owners have once again confirmed their commitment to Upper Austria as a business location, to the circular economy and to the employees by developing this site," says Achleitner. "This investment is an important positive signal for the entire region of Upper Austria location, especially in the current challenging times, and all the more so for creating 150 jobs," he emphasises.

New site milestones
Since January 2021, part of the existing office and hall space at Kunststoffstraße 1, as the site's address is now called, has been occupied by companies and departments of the EREMA Group. UMAC GmbH, a subsidiary specialising in servicing and trading previously owned recycling machines, which was severely short of space at its main location in Styria, moved its entire production and administration to St. Marien. Large areas of hall storage space were adapted for both UMAC and EREMA GmbH. The paint shop was also relocated from Ansfelden to St. Marien, and another hall was equipped for building large-scale VACUREMA® systems - these are systems used all over the world to recycle PET bottles. Production in this workshop is now being ramped up step by step.
Space that is not being used in St. Marien over the medium-term will be rented out. An industry-related firm has already moved in, and another 300 m² of office space is currently still available.

Electronics For Imaging, Inc. is announcing that it will be prioritizing technology investments to accelerate growth in its fast-growing industrial EFI™ Inkjet business to continue to be a leader in the industry of analog-to-digital transition, as well as in its market-leading Fiery® business. As part of this focused strategy, EFI has completed a sale of its eProductivity Software (“EPS”) packaging and print productivity software business to an affiliate of Symphony Technology Group (“STG”). EFI and EPS will continue to collaborate with their joint customers and partners to ensure mutual success.

This realignment allows EFI to accelerate investment into its Inkjet and Fiery business units to capitalize on the growth opportunities available in existing segments the company serves, as well as drive expansion into markets that are beginning the transformation toward digital.

Industrial Inkjet: Capturing Unprecedented Opportunity
The industrial inkjet space is ripe with opportunity in existing and adjacent vertical markets. EFI Inkjet will continue to drive in high-volume, shuttle and single-pass inkjet technology, which the company has currently implemented in award-winning, high-performance products for the Packaging & Corrugated, Display Graphics, Textile, and Building Materials/Decor verticals. EFI will also leverage its industry-leading expertise in hardware, mechanical control software, high-speed electronics, services, cloud-connected devices, and ink innovations to deliver the next generation of versatile, high-volume, superior-quality printers and presses.
 
Following the realignment, EFI is making investments in R&D to strengthen its position in core markets while entering new categories – including the development of technologies to address new applications for the textile space and for packaging.

Fiery: Driving Digital Print Innovation and Growth
The Fiery business unit, under the continued leadership of Fiery Chief Operating Officer and General Manager Toby Weiss, remains as one of the world’s premier DFE providers, enabling the high performance required across many vertical markets including packaging, signage and commercial print with advanced Fiery solutions driving high-end printers and presses from many major equipment manufacturers.

Productivity Software: Investing for Growth under New Ownership
EPS’ new owner, STG, is a private equity firm that focuses on investing in software, data analytics, and software-enabled technology services companies, and will support EPS to deliver enhanced value to its packaging and print customers and accelerate global growth. STG completed this acquisition on December 30, 2021. The price and terms of the deal were not disclosed.
 
Moelis & Company LLC served as exclusive financial advisor, and Sidley Austin LLP acted as legal counsel, to EFI in the sale of EPS. Paul Hastings LLP acted as legal advisor to STG.
 
EFI’s upcoming Connect users conference will be a joint event for EFI and EPS customers. Leaders from both companies will highlight their technology enhancements and product roadmap strategies during the January 17-21 Las Vegas gathering.

At the subsidiaries of the German Mahlo GmbH + Co KG, two branch managers are celebrating anniversaries this year. Alan Lavore, CEO of Mahlo America Inc., has been with the machine builder for 25 years. Michel Bruni, CEO of Mahlo Italia, has been part of the Mahlo family for 40 years.

Bruni began his career at Mahlo in 1981 as a service technician in the French branch Mahlo Ouest. Just one year later, he moved to Mahlo Italia, where he was appointed branch manager in 1996. He still holds this position today. Bruni is also sales manager for the Benelux countries, the Maghreb countries and Madagascar. The Mahlo Italia CEO's recipe for success includes expertise paired with experience and passion. To remain loyal to a company for so many years also testifies to a special relationship. "Then as now, I work with a dynamic and committed team. We also have a very good relationship with the employees of the parent company in Germany," says Bruni.

The culture and integrity with which business is conducted in the family-owned company were among the reasons why Mahlo America Inc. CEO Alan Lavore has also been with Mahlo for 25 years. "I just love working with all the great people at Mahlo." Lavore joined Mahlo in 1996 as a territory sales manager and took over as CEO in 2005. During this time, he drove the company's expansion from a textile specialist to a supplier for various production sectors such as film, paper, coating and converting or nonwovens.

Autoneum presented an insight into current market trends and the Company's strategic focus in the areas of electromobility and sustainability, as well as an outlook on its medium-term financial targets at the media and financial analysts brunch.

In addition to current market expectations and trends in the automotive industry, the focus will be on Autoneum’s activities and growth potential in the areas of e-mobility and sustainability. Matthias Holzammer, CEO, and other experts of the Company will present Autoneum's latest developments with regard to New Mobility and sustainable product innovations as well as their strategic classification. CFO Bernhard Wiehl will also present Autoneum's new medium-term financial targets.

Based on the further expansion of the portfolio with sustainable products and new applications for e-vehicles as well as the increase in market share with existing and new customers, particularly in Asia, the Company expects a profitable revenue growth at market level in the medium term. Based on the expected revenue development, further progress in the turnaround of North America as well as the consistently practiced operational excellence in all business areas, Autoneum targets an EBITDA margin of 13% in the medium term. Accordingly, a solid free cash flow in the amount of 6% of revenue and a further increase in the equity ratio to over 35% are targeted. The Company still intends to pay a dividend to shareholders of at least 30% of the profit attributable to Autoneum shareholders.

• Hightech textiles for future-oriented construction projects

Building shells, bridges, staircases, façades ... construction projects are exposed to enormous mechanical loads. Often there are also considerable climatic or environmental influences. This has prompted the increasing use of fibre-reinforced materials in construction projects. After all, besides many other exciting properties, they offer high mechanical rigidity, low weight and excellent corrosion resistance.

Tapes, tubulars, sections and 3D woven textiles by vombaur form the perfect basis for these innovative building materials. The seamless round or shaped woven narrow textiles made of high-performance fibres are extremely loadable because they have neither seams nor welds – and therefore no undesirable breaking points. Their surface properties are identical over the entire length. In challenging tasks, composite textiles by vombaur offer a lightweight solution that is as reliable as it is durable.

Safe and durable solutions for challenging applications
The potential applications for lightweight components in the construction industry are as numerous as the project ideas of the planning and construction teams.
•    Ropes and tensioning elements made of carbon fibre reinforced plastic (CFRP)
•    Reinforcement of building structures made of concrete, steel, wood or other materials
•    Sustainable restructuring of constructions and urban districts for bridges and buildings
•    CFC slats as reinforcements in case of repairs
•    (Filled) GRP pipes made of seamless round woven tubes by vombaur as columns/pillars
•    CFRP sections as steel girder substitutes
•    Hollow profiles with individually designed cross-sections
•    Glass fibre reinforced connecting elements for glazing to minimise expansion differences between the connecting element and the glass
•    Individual light wells

Implementing visions – with composite textiles by vombaur
As your development partner, vombaur facilitates innovative composites projects for challenging applications. In innovative and safety-sensitive industries such as automotive and aviation, chemical and plant engineering.  The composites experts at vombaur develop, create samples of and manufacture woven tapes and seamless round or shaped woven textiles by vombaur – in collaboration with the customer's enterprise development teams and individually for the respective projects. This is how novel and unique lightweight components made of high-performance textiles are created for visionary lightweight construction projects.

"Fibre-reinforced composites are the ideal material for future-oriented construction projects," explains Dr.-Ing. Sven Schöfer, Head of Development and Innovation at vombaur. "Their outstanding technical properties and design possibilities open up new and fascinating perspectives for construction projects. From building construction to civil engineering, from bridge construction to interior design. As an experienced development partner for sophisticated lightweight components, we at vombaur contribute our seamless solutions to these kinds of future-oriented projects."

Kornit Digital Ltd., a worldwide market leader in digital textile production technologies, released its 2020 Impact and Environmental, Social, and Governance (“ESG”) Report. This inaugural report affirms Kornit’s commitment to achieving specific ESG goals. This includes the way Kornit conducts business, creates meaningful impact in local communities, and achieves environmental sustainability, in addition to how Kornit will continue to build a diverse and inclusive company culture, foster employee growth and development, and empower fair and safe labor practices globally.
 
In addition to enabling eco-friendly production processes with technology and consumables that use less water, reduce waste, and minimize the carbon footprint, Kornit technology solutions enable sustainable production on demand, which eliminates overproduction of apparel and other textile goods. A 2021 Life Cycle Assessment conducted on two flagship products, the Kornit Atlas MAX and Kornit Presto S, demonstrated that relative to traditional analog processes, Kornit’s digital production systems used up to 95% less water and 94% less energy, and produced up to 83% less greenhouse gas (GHG) emissions for the Presto S system and up to 93% less water and 66% less energy, and produced up to 82% less greenhouse gas (GHG) emissions for the Atlas MAX system.

Based on this study, in addition to past sustainability performance results and strategic projections for business growth and market expansion, by 2026 Kornit Digital’s sustainable on-demand solutions are expected to enable the production of approximately 2.5 billion apparel items in a responsible manner to deliver:

• Zero overproduction: By moving the industry to on-demand manufacturing, Kornit will help eliminate the estimated 1.1 billion apparel items overproduced using traditional production methods, based on an industry average of 30% overproduction. This is about 1 apparel item for each and every person living in Europe and North America – saved.
• Zero water waste: In addition to eliminating overstocks, Kornit-enabled production on demand will support saving an estimated 4.3 trillion liters (1.1 trillion gallons) of water. This is the estimated amount of drinking water needed for the entire U.S. population for 11 years.
• Reduced CO2 emissions: By enabling sustainable on-demand production, consuming less energy, and generating less waste, Kornit will prevent an estimated 17.2 billion kilograms (37.9 billion pounds) of greenhouse gas emissions, compared to traditional manufacturing methods. This is equivalent to the estimated amount of carbon dioxide emitted from circumnavigating the entire planet with a car nearly 2,400 times.

Furthermore, the report outlines Kornit’s commitment to achieving KPIs that address waste, chemicals, GHG emissions, energy, product development, employee training, diversity and inclusion, and the company’s supply chain.

Originally conceived as a low-cost, high-volume alternative to knitting and weaving, nonwovens was already expanding its market boundaries by the 1970s with new applications in ‘disposables’ such as diapers, hygiene and teabags.

In the past five decades, the nonwovens business has exploded in all directions, reaching a global market worth USD 40.5 billion in 2020, projected to grow to USD 53.5 billion by 2025. This annual growth rate of 5.7% (MarketsandMarkets, Nonwoven Fabric Market Report) is based on countless new applications and expansion into durable, as well as additional disposable, products.

Major growth drivers include the hygiene sector, and filtration media for power plants and air conditioning systems. Especially during the peak of the COVID pandemic in 2020 and 2021, demand in the hygiene sector multiplied. Worldwide capacities for both meltblown and spunlace production rocketed compared to a normal business year. Swiss Autefa Solutions, for example, significantly benefited from this trend, notably with the launch of a fully-automatic machine for producing face masks.

The automotive industry is the second big growth area, with many new applications being pioneered. The trend to electric and hybrid vehicles has helped this, as nonwovens reinforced with carbon fibres are widely used as battery housings.

Swiss nonwovens competence
Innovative applications across all sectors have driven the rapid evolution of sophisticated nonwovens machinery. Today’s trends demand higher productivity, sustainability and Industry 4.0 compatibility – demonstrated by the full equipment portfolio of Swiss Textile Machinery member Autefa Solutions. With V-Jet Futura, the company recently sealed the link in its product range between web forming and drying technology. This latest Hydroentanglement Machine, together with the SQ-V Square Drum Dryer, embodies advanced technology combined with significant reductions in energy consumption compared to other process solutions.

A vital contribution to nonwovens production is offered by Rieter subsidiary Graf, a leading supplier of clothing and combs for carding and combing processes in spinning and nonwovens. Graf's Hipro card clothings – suitable for any man-made fibres in the nonwovens sector – are focussing on higher productivity. Their superior performance delivers up to 10% higher throughput and greater carding efficiency compared to conventional clothings. These reliable card clothing elements also ensure a consistently reproducible high web quality, as well as 20% fewer failures in the web, thanks to the precise fibre transfer to and from the cylinder.

Another constant trend in nonwovens today is the drive for better quality. Manufacturers want to take charge of contamination levels in their processes, as well as eradicating defects which may arise during production. Uster Technologies, a leading provider of quality management solutions from fibre to fabric, offers a combined solution to achieve both these required quality standards. At the fibre preparation stage, Uster Jossi Vision Shield N ensures the best possible initial inspection and removal of contamination. Then, at the end of the production sequence, Uster EVS Fabriq Vision N handles automated detection and marking of all the main defects caused during production. This combined solution avoids material waste and takes full advantage of the potential for process optimization.