From the Sector

echnology Group ANDRITZ achieved in 2022 the best figures in its history for order intake, revenue, and operating result ( EBITA). ANDRITZ started the new business year with a record order backlog of around ten billion EUR. Together with strict cost and project management and the successful turnaround in the Metals business area with the German Schuler Group, that order backlog will form the basis for further growth and profitability increases in 2023. Subject to the approval by the Annual General Meeting, shareholders will benefit from the excellent business development with a significant dividend increase to 2.10 EUR (previous year: 1.65 EUR) per share.

The results of the business year 2022 in detail:

• The order intake of 9,263.4 MEUR reached a record level and was thus significantly higher than the figure for the previous year (+17.6% compared to 2021: 7,879.7 MEUR). All four business areas contributed to the increase.
• The order backlog as of the end of 2022 amounted to 9,976.5 MEUR and was thus significantly higher than the value for the previous year (+22.2% compared to 2021: 8,165.8 MEUR).
• The revenue saw very favorable development during the 2022 business year and reached a new record level of 7,542.9 MEUR (+16.7% compared to 2021: 6,463.0 MEUR). All four business areas contributed to the increase in revenue.
• The operating result (EBITA) increased slightly more than revenue and reached 648.5 MEUR, also a record level (+18.7% compared to 2021: 546.5 MEUR). All four business areas contributed to the increase in earnings. Profitability (EBITA margin) increased to 8.6% (2021: 8.5%).
• The net income (including non-controlling interests) increased significantly compared to the previous year, amounting to 402.6 MEUR (+25.1% compared to 2021: 321.7 MEUR)

ANDRITZ expects to continue its profitable course of growth in the business year 2023 and anticipates an increase in both revenue and earnings compared to 2022.

Kelheim Fibres, a leading manufacturer of viscose speciality fibres, has joined Recycling Atelier Augsburg. Recycling Atelier Augsburg is a unique centre for research and development in the field of textile recycling. It is located at the Institut für Textiltechnik Augsburg an affiliated institute of Augsburg University of Applied Sciences. The two institutions founded the Recycling Atelier in June 2022 together with twelve partners from the German textile industry.

In the Recycling Atelier, the focus is on the triad of technical and ecological sense as well as economic benefit. In this way, the partners of the Recycling Atelier are standing up against fast fashion, outsourced corporate responsibility and a general decline in raw material quality, which often fuels downcycling - the low-quality reuse - of materials.

As a model factory, the Recycling Atelier Augsburg combines the most important processes of textile recycling and offers holistic and comprehensive research along the value chain," explains Georg Stegschuster, head of the Recycling Atelier Augsburg. The scientists research on all process steps of textile recycling: from material analysis to sorting, preparation and textile processing to sustainable product design. Comprehensive data collection and the use of artificial intelligence as well as innovative materials play a central role.

Kelheim Fibres is a producer of high-quality viscose fibres, which consist of cellulose, the main component of the renewable raw material wood, and are used worldwide for products in areas such as hygiene, textiles, and technical applications.

"In New Business Development as well as Fibre and Application Development, we follow the Open Innovation concept - the cooperation with the Recycling Atelier offers us an ideal platform for this. Here we work with partners to advance sustainability and performance," explains Maik Thiel, project manager at Kelheim Fibres.

Recycled cotton fibres are often very short or of uneven length, which makes further processing of 100 % recycled material a challenge. Adding speciality fibres from Kelheim Fibres should enable the production of high-quality new products, such as nonwovens. In the future, the fibres provided by Kelheim Fibres will also be made from recycled pulp.

Archroma announced the closing of the acquisition of the Textile Effects business from Huntsman Corporation (“Huntsman Textile Effects”).

When the Huntsman Textile Effects acquisition was first announced in August 2022, Archroma Group Chief Executive Officer (CEO) Heike van de Kerkhof called the transaction a “merger of equals”. Indeed, the global business of Huntsman Textile Effects comprises approximately 2,300 employees in 33 countries and 10 production sites globally which, when combined with Archroma, means the company will have more than 5,000 employees in total, in 42 countries and 35 production sites.

In addition to the closing of the Textile Effects acquisition, Archroma announced that it has updated its overall business into two operating divisions for growth, each focused on a separate end market.

The Textile Effects business acquired from Huntsman will be integrated with the Brand & Performance Textile Specialties business of Archroma into one new division named Archroma Textile Effects. The new division will be led by Rohit Aggarwal, former President of Huntsman Textile Effects, who is appointed as Divisional President & CEO of the Archroma Textile Effects division, as well as President Asia.

The Packaging & Paper Specialties and Coatings, Adhesives & Sealants businesses of Archroma have been recently combined into one new division named Archroma Paper, Packaging & Coatings, under the leadership of Sameer Singla, Divisional President & CEO of the Archroma Paper, Packaging & Coatings division, as well as President Americas and Europe, Middle East & Africa.

This new structure will ensure that both divisions obtain the resources and focus needed to continue providing Archroma’s customers and business partners with the superior experience and solutions they have come to expect.

In particular, Archroma is committed to supporting global megatrends and societal shifts such as circular fashion, plastic-to-paper replacement, and water-based paints and coatings, with the innovations and solutions needed to do so.

• Sales of CHF 890.3 million in second half-year 2022
• EBIT margin of around 2% expected for full year 2022
• Order intake of CHF 1 157.3 million in 2022; order backlog of around CHF 1 540 million as of December 31, 2022
• Preparations for ITMA 2023 on schedule
• Implementation of action plan to increase sales and profitability ongoing
• Rieter site sales process on schedule

For Rieter, in addition to the geopolitical uncertainties, the 2022 financial year was characterized by three main challenges:
Due to the rapid rise in inflation, the exceptionally high order backlog of around CHF 1 840 million at the beginning of 2022 was processed at significantly higher costs. It was only possible to offset these higher costs in part by means of price increases and other remedial measures.

In order to safeguard deliveries, it was necessary to compensate for serious material bottlenecks, particularly in electronic components, which resulted in considerable additional development expenditure.

Major expenses were also incurred in connection with the acquired businesses (Accotex, Temco and Winder).

Sales
The realization of sales from the exceptionally high order backlog developed better than expected. With sales of CHF 1 510.9 million, Rieter achieved an increase of 56% compared with the previous year (2021: CHF 969.2 million). In the second half of 2022, especially in the fourth quarter, the measures introduced to address material bottlenecks had a positive impact. Consequently, sales increased to CHF 890.3 million compared with the first six months (first half-year 2022: CHF 620.6 million).

EBIT margin
The trend in the EBIT margin was strongly influenced by substantial cost increases, which could only be offset in part through price increases and other remedial measures. In addition, to compensate for material shortages, expenses were incurred in connection with the development of alternative solutions and the acquired businesses.

Rieter succeeded in improving profitability compared with the first half of 2022 due to the higher sales volume and offsetting measures to compensate for increased costs, and expects a positive EBIT margin of around 2% for the full year 2022 (2021: 4.9%).

Order intake
In line with expectations, the order intake of CHF 1 157.3 million in 2022 was below the record year of 2021 (CHF 2 225.7 million). The market situation is characterized by investment restraint due to geopolitical uncertainties, higher financing costs and consumer reticence in important markets.

Order backlog
The company had an order backlog of around CHF 1 540 million at the end of 2022, which thus extends well into 2023 and 2024. In 2022, Rieter recorded order cancellations of less than 10% of the order backlog of CHF 1 840 million at the beginning of the year.

Preparations for ITMA 2023 on schedule
Rieter has continued to boost its innovative capability and, in order to further extend its technology leadership, will present new innovative solutions at ITMA 2023 in Milan.

Action plan to increase sales and profitability
Implementation of the action plan to increase sales and profitability is ongoing. With regard to the profitability of the order backlog, which remains high, the implemented price increases in combination with a favorable trend in costs, particularly in logistics, are having an impact. In addition, progress was made in eliminating material bottlenecks and reducing expenses for the three acquired businesses.

Rieter site sales process
The sales process for the remaining land at the Rieter site in Winterthur (Switzerland) is proceeding according to plan. In total, around 75 000 m² of land will be sold. The Rieter CAMPUS is not part of this transaction.

Results press conference 2023
Rieter will provide further details on the 2022 financial year and an outlook for the 2023 financial year on March 9, 2023.

Freudenberg Performance Materials (Freudenberg) is widening its product range of technical packaging textiles. Evolon® ESD protects automotive and industrial parts with electronic components from electrostatic discharge. This includes trim lines, dashboards, mirrors, steering wheels, etc.

The ESD (ElectroStatic Discharge) feature of the new Evolon® technical packing textile provides permanent electrostatic discharging protection and the fabric’s surface resistivity can be customized. This eliminates ESD damage to electronic components during transport because electrostatic charging due to movement and friction is safely prevented. As this kind of damage cannot be detected with the naked eye, Evolon® ESD helps to avoid failures which can occur after the final product is assembled and released. Manufacturers benefit from fewer complaints and warranty costs, as well as better end customer satisfaction.

Further protection feature
Unlike conventional ESD packaging solutions, Evolon® ESD also protects parts surfaces by avoiding micro-scratches or lint contamination. By using Evolon® reusable packaging to transport parts with highly-sensitive surfaces, customers reduce the number of damaged parts and the reject rate.

Additional benefits
Evolon® microfilament textiles are also extremely strong and are available in different weights to meet a wide range of requirements – from lightweight to heavy-duty. They can be used to pack and transport very heavy parts without damage. In addition, Evolon® fabrics are durable, and contain up to 85% recycled PET.

2022 war für viele Textil-, Schuh- und Lederwarenhändler ein sehr durchwachsenes Jahr. Nach der aktuellen BTE-Unternehmerumfrage aus dem Januar 2023 haben im letzten Jahr zwar drei von zehn Modehändlern ein operatives Geschäftsergebnis erzielt, dass besser als + 5 Prozent vom Bruttoumsatz ausfiel (unter Berücksichtigung kalkulatorischer Kosten), bei einem Viertel der Umfrageteilnehmer lag der Ertrag aber lediglich zwischen + 1 und + 5 Prozent.
 
Problematisch: 12 Prozent erreichten lediglich ein halbwegs ausgeglichenes Ergebnis zwischen +1 und -1 Prozent.  Und ein knappes Drittel der Umfrageteilnehmer landete tief in den roten Zahlen, jeder fünfte sogar mit einem operativen Verlust von 5 Prozent oder schlechter.
 
"Nach zwei hochproblematischen Corona-Jahren mit zum Teil hohen betriebswirtschaftlichen Verlusten ist die vollständige Rückkehr zur Normalität bei einem Gutteil der Unternehmen damit noch nicht erreicht", konstatiert BTE-Hauptgeschäftsführer Rolf Pangels. Die Gründe sind mit dem Ukraine-Krieg und den damit verbundenen Kostenbelastungen zwar primär externer Natur, letztendlich müssen die Unternehmen die Folgen aber verkraften. Pangels: "Angesichts der wohl weiter steigenden Kosten und gleichzeitig unsicheren Umsatzentwicklung dürften rund die Hälfte der Unternehmen Probleme haben oder bekommen, notwendige Investitionen in ihre Wettbewerbsfähigkeit zu tätigen."
 
Vor diesem Hintergrund ist der Textil-, Schuh- und Lederwarenhandel zurückhaltend bezüglich seiner Umsatzerwartung für 2023. Nur eine Minderheit von 40 Prozent der Umfrageteilnehmer rechnet mit einem nennenswerten Umsatzplus gegenüber 2022. Bei etwa Pari (-1 bis +1 Prozent) sehen sich 27 Prozent der Teilnehmer. Rund ein Drittel befürchtet dagegen einen Rückgang von mindestens ein Prozent, die Hälfte davon sogar ein Minus von mindestens fünf Prozent.

The details of the proposed restriction of around 10 000 per- and polyfluoroalkyl substances (PFASs) are now available on ECHA’s website. ECHA’s scientific committees will now start evaluating the proposal in terms of the risks to people and the environment, and the impacts on society.

The proposal was prepared by authorities in Denmark, Germany, the Netherlands, Norway and Sweden and submitted to ECHA on 13 January 2023. It aims to reduce PFAS emissions into the environment and make products and processes safer for people.

All PFASs in the scope of the proposal are very persistent in the environment. If their releases are not minimised, people, plants and animals will be increasingly exposed, and without a restriction, such levels will be reached that have negative effects on people’s health and the environment. The authorities estimate that around 4.4 million tonnes of PFASs would end up in the environment over the next 30 years unless action is taken.

Peter van der Zandt, ECHA’s Director for Risk Assessment said: “This landmark proposal by the five authorities supports the ambitions of the EU’s Chemicals Strategy and the Zero Pollution action plan. Now, our scientific committees will start their evaluation and opinion forming. While the evaluation of such a broad proposal with thousands of substances, and many uses, will be challenging, we are ready.”

Next steps
ECHA’s scientific committees for Risk Assessment (RAC) and for Socio-Economic Analysis (SEAC) will check that the proposal meets the legal requirements of REACH in their meetings in March 2023. If it does, the committees will begin their scientific evaluation of the proposal. A six-month consultation is planned to start on 22 March 2023.

RAC will form an opinion on whether the proposed restriction is appropriate in reducing the risks to people’s health and the environment, while SEAC’s opinion will be on the socio-economic impacts, i.e. benefits and costs to society, associated with the proposal. Both committees form their opinions based on the information in the restriction proposal and the comments received during consultations. The committees also consider advice from the Enforcement Forum on the enforceability of the proposed restriction. Once the opinions are adopted, they will be sent to the European Commission who, together with the EU Member States, will then decide on the potential restriction.

An online information session will be organised on 5 April 2023 to explain the restriction process and to help those interested in participating in the consultation.

International experts will discuss topics along the entire cellulose fibre value chain at the upcoming Cellulose Fibres Conference, 8–9 March 2023 in Cologne and online.

How can the cellulose fibre industry contribute to the sustainability and circularity of the textile sector? How can fibre markets achieve a circular economy for their materials? What are the most sustainable technologies on the market? And, are there innovative, interesting raw materials and technologies worth exploring to meet the challenges of the coming years?

These and other questions in the field of cellulose fibres will be discussed within the program of the Cellulose Fibres Conference 2023. The two-day event will provide insights into the latest developments of the cellulose fibre sector and introduce innovative start-ups, technologies as well as novel fibre applications. A special focus will be set on the textile sector and its awaited paradigm shift towards circular economy in the following years.

Seven sessions will provide in depth views from fibre production to recycling, policy and market trends:

• Strategies, Policy Framework of Textiles and Market Trends,
• Circular Economy and Recyclability of Fibres,
• Alternative Feedstocks and Supply Chains,
• Innovation Award “Cellulose Fibre Innovation of the Year 2023″,
• Sustainability and Environmental Impacts,
• Ionic Liquids and New Technologies for Pulps, Fibres and Yarns,
• New Technologies and Applications beyond Textiles.

The full conference program is available here.

Beste x HeiQ AeoniQ™ announce their partnership with the launch of a capsule in the CARPINI collection at Milano Unica. The fabrics including HeiQ AeoniQ™ are crafted by the Italian textiles manufacturer Beste, well known for supplying high-end fabrics for premium and luxury brands.

The fabrics capsule collection for S/S 24 includes 12 articles made with 100% HeiQ AeoniQ™, linen, and HeiQ AeoniQ™ blends, and cotton and HeiQ AeoniQ™ blends in several different proportions.
The collection is named FLOW, as related to the movement of water and air to be in tune with Nature’s balance and rhythm, with a color range including hay, black, water, caramel, violet, dust, denim, lime, and cobalt.

With this initiative, Beste becomes the first partner to incorporate the HeiQ AeoniQ™ fiber into its active fabric portfolio, and also its Tessuteka, the library that keeps all the fabrics produced by the company since 1993.

For Carlo Centonze, HeiQ’s CEO “the partnership with Beste makes total sense for all the values embodied by HeiQ AeoniQ™ that we both share, namely its commitment to circular ethics, practice and promote sustainability, and have a positive impact in the environment while also creating new business opportunities that the market and the Planet so urgently need.”

According to Giovanni Santi, Beste’s CDA president: “Beste SpA benefit company is strongly committed to developing a positive and responsible impact over the environment and the social fabric it is surrounded by. To meet this precise criterion, we use HeiQ AeoniQ™, a new biodegradable fiber developed by HeiQ, a Swiss chemical company that is Beste's constant partner in this indispensable green revolution. The introduction of HeiQ AeoniQ™, namely a fiber that is cellulosic in nature but with characteristics and performances similar to polyester ones, concerns a significant step in the reduction of CO2 emissions and plastics. It is not only a responsible choice, but it also deals with a precise and courageous positioning in the constant battle in favor of our planet by starting from the textile innovation front.”

The new Beste x HeiQ AeoniQ™ fabrics will be displayed at Beste’s booth during the Milano Unica trade show from January 31st to February 2nd, in Milan, Italy.

For the third time, nova-Institute awards the “Cellulose Fibre Innovation of the Year” award in the frame of the “Cellulose Fibres Conference 2023” (8-9 March 2023). The conference advisory board nominated six remarkable products, including cellulose fibres from textile waste, banana production waste and bacterial pulp, a novel technology for producing lyocell yarns and a hygiene product. The innovations will be put to the vote of the conference audience on the first day of the event, with the awards ceremony taking place in the evening. The innovation award “Cellulose Fibre Innovation of the Year 2023” is sponsored by GIG Karasek (AT).

Here are the six nominees
Vybrana – The new generation banana fibre – GenCrest Bioproducts (India)
Vybrana is a Gencrest’s Sustainable Cellulosic Fibre upcycled from agrowaste. Raw fibres are extracted from the Banana Pseudo stem at the end of the plant lifecycle. The biomass waste is then treated by the Gencrest patented Fiberzyme technology. Here, cocktail enzyme formulations remove the high lignin content and other impurities and help fibre fibrillation. The company's proprietary cottonisation process provides fine, spinnable cellulose staple fibres suitable for blending with other staple fibres and can be spun on any conventional spinning systems giving yarns sustainable apparel. Vybrana is produced without the use of heavy chemicals and minimized water consumption and in a waste-free process where balance biomass is converted to bio stimulants Agrosatva and Bio Fertilizers & organic manure.

HeiQ AeoniQ™ – technology for more sustainability of textiles – HeiQ (Austria)
HeiQ AeoniQ™ is the disruptive technology and key initiative from HeiQ with the potential to change the sustainability of textiles. It is the first climate-positive continuous cellulose filament yarn, made in a proprietary manufacturing process and the first to reproduce the properties of polyester and nylon yarns in a cellulosic, biodegradable, and endlessly recyclable fibre.
HeiQ AeoniQ™ can be manufactured from different cellulosic raw materials such as pre- and post-consumer textile waste, biotech cellulose, and non-valorized agricultural waste, such as ground coffee waste or banana peels. It naturally degrades after only 12 weeks in the soil. Each ton of HeiQ AeoniQ™ saves 5 tons of CO2 emissions. The first garments made with this innovative cellulosic filament fiber were commercially launched in January 2023.

TENCEL™ LUXE – lyocell filament yarn – Lenzing (Austria)
TENCEL™ LUXE is LENZING’s new versatile lyocell yarn that offers an urgently needed sustainable filament solution for the textile and fashion industry. A possible botanical alternative for silk, long-staple cotton, and petrol-based synthetic filaments, is derived from wood grown in renewable, sustainably managed forests, and produced in an environmentally sound, closed-loop process that recycles water and reuses more than 99 % of organic solvent. Certified by The Vegan Society, it is suitable for a wide range of applications and fabric developments, from finer high fashion propositions to denim constructions, seamless and activewear innovations, and even agricultural and technical solutions.

Nullarbor™ – Nanollose & Birla Cellulose (Australia/India)
In 2020, Nanollose & Birla Cellulose started a journey to develop and commercialize tree-free lyocell from bacterial cellulose, called Nullarbor™. The name derives from the Latin “nulla arbor” which means “no trees”. Initial lab research at both ends led to a joint patent application with the patent “production of high-tenacity lyocell fibres made from bacterial cellulose”.
Nullarbor is significantly stronger than lyocell made from wood-based pulp; even adding small amounts of bacterial cellulose to wood pulp increases the fibre toughness. In 2022, the first pilot batch of 260kg was produced with 20 % bacterial pulp share. Several high-quality fabrics and garments were produced with this fibre. The collaboration between Nanollose & Birla Cellulose now focuses on increasing the production scale and amount of bacterial pulp in the fibre.

Circulose® – makes fashion circular – Renewcell (Sweden)
Circulose® made by Renewcell is a branded dissolving pulp made from 100 % textile waste, like worn-out clothes and production scraps. It provides a unique material for fashion that is 100 % recycled, recyclable, biodegradable, and of virgin-equivalent quality. It is used by fibre producers to make staple fibre or filaments like viscose, lyocell, modal, acetate or other types of man-made cellulosic fibres. In 2022, Renewcell, opened the world’s first textile-to-textile chemical recycling plant in Sundsvall, Sweden – Renewcell 1. The plant will eventually reach 120,000 tons of annual capacity.

Sparkle sustainable sanitary pads – Sparkle Innovations (United States)
Globally, around 300 billion period products are discarded every year, resulting in millions of tons of non-biodegradable waste. Since most conventional sanitary pads contain up to 90 % plastics, they do not biodegrade for around 600 years. Sparkle has designed sustainable, plastic-free, biodegradable and compostable Sparkle sanitary pads. From product to packaging, they are made up of around 90 % cellulose-based materials with top sheet, absorbent core, release paper, wrapping paper and packaging made of cellulose-based fibres. Whether Sparkle pads end up in a compost pit, are incinerated or end up in a landfill, they are a more sustainable alternative compared to conventional pads that contain large amounts of plastics, complex petro-chemical based ingredients and artificial fragrances. When tested according to ISO 14855-1 by a leading independent lab in Europe, Sparkle pads reached over 90 % absolute biodegradation within 90 days in commercial composting conditions.