From the Sector

• SGL Carbon receives €42.9 million funding under IPCEI for graphite anode materials (GAM) in lithium-ion batteries
• Funding in the amount of €42.9 million to 2028 for SGL Carbon GmbH from the German Federal Government and the Free State of Bavaria
• SGL Carbon project aims at European production of innovative anode materials as a key value-added step in electromobility

SGL Carbon, a leading supplier of graphite and carbon products, today received a funding notification for the development and industrialization of innovative anode materials made of synthetic graphite for use in lithium-ion batteries. The funding program is part of the second European IPCEI (Important Project of Common European Interest) / EUBatIn (European Battery Innovation) program, which aims at a competitive European value chain for lithium-ion batteries based on innovative and sustainable technologies.

SGL Carbon is one of a few manufacturers of synthetic graphite for anode materials in Europe. The company’s contribution to the IPCEI project ranges from the development of anode materials with increased performance, energy-efficient and sustainable manufacturing processes to novel recycling concepts. It also includes scaling them up to pilot scale and finally mass production. Over the project lifetime until 2028, the goal is to also establish a closed cycle for this cell component. SGL Carbon has already created a solid foundation for the project through previous investments such as the battery application laboratory at its Meitingen site. The German federal government and the Free State of Bavaria provide funding for the SGL Carbon project totaling €42.9 million, which can be drawn down over the duration of the project.

"With our development and industrialization project for new innovative anode materials and processes, we make an essential contribution to establishing a sustainable and competitive European value chain and circular economy for lithium-ion batteries. In turn, this enables us to support our customers with tailored materials and services in their innovation and industrialization process. We are very pleased about the support from the federal and state governments in this important task and would like to express our sincere thanks," explains Burkhard Straube, President Business Unit Graphite Solutions at SGL Carbon.

"In order to produce competitive, high-performance and particularly environmentally friendly batteries in the future, we need innovations. The companies participating in the IPCEIs base their battery materials, cells and systems pursued in the projects on their own research - in cooperation with their partners. This way, we ensure that the battery ecosystem being created in Germany and Europe will also place us among the world leaders in terms of technology," says Elisabeth Winkelmeier-Becker, Parliamentary State Secretary at the German Federal Ministry of Economics and Technology.

"The funding ensures value creation in a central high-tech segment with great future potential, which is ideally suited to Bavaria as a business location. In the course of the project, 25 jobs will be secured or newly created in Meitingen. SGL Carbon is an important company for the entire region and a major employer," says Hubert Aiwanger, Bavarian Minister of Economic Affairs and Bavarian Deputy Minister-President.
 
Synthetic graphite is utilized as anode material for lithium-ion batteries in many fast-growing applications such as electric vehicles, stationary energy storage systems and mobile consumer devices. Compared to natural graphite, synthetic graphite has a better performance, higher quality consistency and easier production scalability, as well as a better profile in terms of environmental footprint and safety in manufacturing. In the project described, SGL Carbon builds on its core competencies in the development and mass production of synthetic graphite.

Cooperation and business development with AMAC
As of November 1st, 2020, AMAC is pleased to announce its cooperation with company FibreCoat for the market introduction of their products and global business development. FibreCoat is a young, award-winning start-up and spin-off of the RWTH Aachen University in Germany and develops multi-filament coated yarns, fabrics and composites based on glass or basalt fibres.

Dr. Michael Effing, CEO AMAC GmbH: „FibreCoat is a very promising newcomer in the electro-magnetic shielding and composites industry and their innovations are very cost-efficient for new technologies such as e-mobility or telecommunications. I am very pleased to introduce them to relevant key players in the industry and accompany them in their growth strategy.“

Product Launch
FibreCoat develops metal-coated fibres like bi-component multi-filament yarns with basalt core and aluminum coating which can be used for EMI-shielding and heat sinks in battery casings, electric diverters in filters, reinforcement of cast aluminum parts o ras conductive yarns in smart textiles.

FibreCoat launches ALUCOAT™, an aluminum-coated glass or basalt fibre which is suitable as electro-magnetic shielding material in automotive applications such as radar, antennas or for autonomous driving as well as for mobile phones and applications in buildings. Due to its extraordinary thermal conductivity and better heat transfer compared to traditional composite material, it can be used for the manufacturing of automotive battery trays or industrial applications such as fine particulate air filters.

ALUCOAT™ is available as of January 1st 2021 as a yarn, fabric or non-woven with a wide range of possible titers and areal weight. The material will offer an electrical conductivity of 100 Ωm and a working temperature of at least 400 °C. Furthermore, it can be used for the shielding of low to high frequencies with an effectiveness of 80 to 120 dB.

Technical textiles fulfil many functions: they hold, they lift, they fixate, they stretch – and they tension. In this function narrow textiles fulfil an important task in product development. And they offer significant advantages over metal or plastic tensioning devices such as springs, clamps or cable ties.

Properties
Textiles are light: a property that plays a central role in modern mobility. Textiles are flexible: from extremely high to extremely low elasticity: the force-elongation behaviour of elasticated narrow textiles can be precisely defined. Depending on the tensioning task to be performed. Textiles tension in tight packaging spaces: elastics can also be used where space is too tight for springs and clasps. Textiles are energy efficient: lightweight, with high tensioning force. Textiles are easy to handle: replace a connector spontaneously and without tools, quickly change the length or roll up and store a supply. And textiles are sustainable: natural fibres and rubber are natural and ecologically degradable raw materials; synthetic fibres can be completely produced from recycled materials.

Applications
Development teams in numerous industries leverage these properties for their products. For example, for flexible machine parts in mechanical engineering, for switch contacts in electrical engineering, for oscillation-capable locking systems in the construction industry, for noise- and vibration-free seating systems in the automotive sector or for grip rings in the toys industry.

Tasks
Particularly en vogue today, when we are spending more time than usual in our own homes: applications for narrow textiles in the furniture industry. They go far beyond the area of legacy home textiles: as tensioning elements in armchairs, sofas and chairs, as hinge solutions in cupboards, as fixation elements in extendable or folding tables. Narrow textiles are used for gripping tasks almost everywhere in the living room.

"JUMBO-Textil specialises in precisely implementing the individual requirements for defined force-elongation values of elasticated narrow textiles: we adapt the technical properties of our products precisely to the specific task and the respective raw materials," explains Werner Thiex, Sales Director Automotive. "Precise technical specification plus sustainable raw materials – this is a crucial combination in the 21st century".

• The Lenzing Group was the first Austrian company to send goods 100 percent “Made in Austria” by train directly to China.
• The train loaded with TENCEL™ fibers reached Xinzhu station in Xi'an on September 05.

Xi’an, China – The Lenzing Group is breaking new ground due to the short-term increase in demand for sustainably produced fibers from Chinese customers. For the first time, the company delivered wood-based cellulosic fibers, which are produced at the Austrian sites in Lenzing and Heiligenkreuz, directly to China by train. Thanks to this new transport route, Lenzing is able to meet the urgent demand of its Chinese customers twice as quickly as by the usual sea freight.

The first complete train with goods 100 percent “Made in Austria” started on August 20 in the presence of Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology, His Excellency Xiaosi Li, Ambassador of the People's Republic of China in Austria, Stefan Doboczky, Chief Executive Officer of the Lenzing Group, Thomas Kargl, Board Member of the ÖBB Rail Cargo Group, Erwin Cootjans, Chief Executive Officer of Nunner Logistics, and Erich Hampel, Chairman of the Board of the B&C Private Foundation, at the Vienna South Terminal and reached his destination on September 05 at the Xinzhu train station in Xi'an, China. The train loaded with 41 containers with TENCEL™ branded lyocell and modal fibers and a total value of EUR 1.8 mn, passed a total of 10,460 km in seven countries: Austria, the Czech Republic, Poland, Belarus, Russia, Kazakhstan and China.

The first Lenzing fiber train was received in a grand ceremony on Tuesday, September 08 at the container terminal in Xi'an. Numerous guests, including the Austrian ambassador to China, Friedrich Stift, representatives of the Xi'an Municipal Government, the China Railway Xi'an Group, the Xi'an International Trade & Logistics Park as well as representatives of the Lenzing Group, the China National Textile and Apparel Council, Lenzing customers and the media attended the ceremony.

In his speech, Friedrich Stift, Austrian ambassador to China, emphasizes the importance of international trade and sustainable development: “The delivery of Austrian-made products through the CHINA RAILWAY Express adheres to the sustainable concept of Lenzing. Since China and Austria signed the bilateral railway cooperation agreement in 1994, the two countries have maintained good cooperation in the railway field and will continue to do so in the future. China is Austria's largest partner in Asia, and it is believed that after the outbreak of the corona crisis bilateral trade will normalize in 2021.”

“This is the first time for the Lenzing Group to deliver Austrian-made TENCEL™ branded fibers directly to Chinese customers. The Silk Road has been a main transport route between Europe and Asia since ancient times. Chinese consumers affectionately call TENCEL™ fibers ‘Silk from Heaven’. The China-Europe Express can reduce the transport time between Europe and China by half, thus meeting Chinese customer’s demand for environmentally friendly fibers more quickly”, states Hu Jian, Senior Vice President of the Lenzing Group for North Asia.

• Due to the short-term increase in demand from Chinese customers, Lenzing AG is breaking new ground. For the first time in the history of Austria, a local company is sending goods that are 100 percent produced in Austria directly to China by train.

Vienna – The Lenzing Group stands for the ecologically responsible production of specialty fibers made from the renewable raw material wood. Due to the high demand from Chinese brands and retailers for sustainably produced fibers, Lenzing delivers fibers from the two Austrian production sites Lenzing and Heiligenkreuz directly to customers in China by train for the first time.

Austria's first complete train with goods exclusively “Made in Austria” will leave the Vienna South Terminal towards China on August 20, 2020 at 11 am. The train is loaded with Lenzing fibers and provided by NUNNER Logistics. In strict compliance with the COVID-19 protective measures, Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology, His Excellency Xiaosi Li, Ambassador of the People's Republic of China in Austria, Stefan Doboczky, CEO of the Lenzing Group, Thomas Kargl, Board Member of the ÖBB Rail Cargo Group, Erwin Cootjans, CEO Nunner Logistics and Erich Hampel, Chairman of the Board of the B&C Private Foundation, took part in the departure ceremony.

The train, which started at Vienna, brings 41 containers with TENCEL™ branded Lyocell and Modal fibers with a total value of EUR 1.8 million directly to customers in China. On its 16-day trip to Shanghai, the train covers a total of 10,460 kilometers and passes seven countries: Austria, the Czech Republic, Poland, Belarus, Russia, Kazakhstan and China. “With this new transport route, we can meet the high demand from our customers for sustainably produced fibers more quickly. Thanks to train transport, the urgently needed fibers arrive at our customers in China twice as quickly as by sea freight,” says Stefan Doboczky, CEO of the Lenzing Group. Lenzing has had very good experiences with rail transport for a long time when it comes to delivering the renewable raw material wood to its plants. Almost 70 percent of the wood processed at the Lenzing site is already delivered by rail. “Our declared goal is to shift more freight traffic to rail. Rail is the only way to combine climate goals and economic interests and thus transport growth. That is why we are happy to be part of this unique project for our long-standing customer,” says Thomas Kargl, Board Member of the ÖBB Rail Cargo Group. “Transporting goods by rail to China is possible. And this train from Vienna to China is an integral part of climate protection. Because we want to support the shift from road to rail, especially in freight transport. Today's train is the first step – I am convinced this train will set an example”, says Leonore Gewessler, Federal Minister for Climate Action, Environment, Energy, Mobility, Innovation and Technology.

After Mondial. Tech, NAIAS 2019, and eMove 360°, JEC Group will hold the 4th Composites Pavilion at the North American International Auto Show (NAIAS) in Detroit from June 9 to 11, 2020 in a spirit of innovation, business, and networking.

At NAIAS 2020, JEC Group will highlight the latest technologies and solutions allowing the automotive industry to innovate in product design, reduce the environmental impact of emissions and improve production rates thanks to composite materials. For the first time in 2020, the Composites Mobility Summit will simultaneously include the pavilion with a showcase of innovative parts, an extensive conference program, and a composites tour. Composite materials are a key part of the future of the Mobility industry and this Summit will both demonstrate the exciting variety of their applications, and aim to push forward their use in an even more global scope.

Within the Composite Solutions for Mobility pavilion, the displayed parts will highlight the different applications of composites for mobility such as lightweight, design freedom, aesthetics and flexibility, resistance, strength and stiffness, function integration, hybridization, fuel storage, connectivity integration and battery housing.

Net result impacted by operating losses and high impairments in North America

In 2019, Autoneum grew organically by 2.5% and has thereby significantly outperformed the declining market. In Swiss francs, revenue rose slightly to CHF 2 297.4 million. However, as previously communicated, operational inefficiencies in North America and impairments on fixed assets in that region had a particularly strong impact on profitability and led to a net loss of CHF –77.7 million. The Board of Directors therefore proposes that no dividend bedistributed for the 2019 financial year. Based on the new turnaround program launched in North America at the beginning of this year, significant profitability increases are expected for 2020.

2019 was an extremely challenging year for the automobile industry. The continuing weakness of the global economy, ongoing trade disputes and the increasing regulation of mobility impacted vehicle demand negatively. But 2019 was also a year of change for Autoneum internally. An in-depth analysis carried out by the new Group Management in the fall showed a need to reevaluate the Group’s performance over the short- to medium-term. In Business Group North America, the operational and commercial problems have proven more extensive than originally assumed. As a result, the turnaround program launched in spring 2019 was replaced at the beginning of 2020 with a dedicated and far more comprehensive program for the North American sites.

Revenue growth despite a shrinking global market
As a result of weak demand, the number of light vehicles produced worldwide fell again sharply in 2019 compared to the previous year; whereby the decline of almost –6% was much steeper than in 2018. Thanks to numerous production ramp-ups and a favorable model portfolio, Autoneum generated organic revenue growth1 of 2.5%, despite the global market cooling. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Profitability2 impacted by operational inefficiencies and impairments
Operational inefficiencies in North America and impairments on fixed assets in this region were the main reason for the – first-ever – negative net result in 2019. In addition, the sharp drop in automobile production in Europe and China as well as associated lower utilization of production capacities in the affected Business Groups also burdened the Group’s profitability. EBITDA excluding IFRS 16 effects decreased to CHF 126.0 million (2018: CHF 197.2 million), which corresponds to an EBITDA margin of 5.5% (2018: 8.6%). One-time charges from impairments in the amount of CHF –68.0 million had a negative impact on EBIT, reducing it to CHF –32.9 million (2018: CHF 114.1 million). Without these one-time charges, EBIT amounted to CHF 35.0 million. The EBIT margin 1 Change in revenue in local currencies, adjusted for hyperinflation. 2 The figures for the 2019 financial year include IFRS 16 effects. Autoneum Management Ltd . Media Release . March 4, 2020 Page 2/5 excluding impairments was at 1.5% in 2019, and taking those into account the margin decreased to –1.4% (2018: 5.0%).

At this year’s JEC World, the largest trade fair for composites held from March 3-5, 2020 in Paris, SGL Carbon will focus on the topic of serial production for the automotive, aerospace and industrial sectors. The key is customized solutions with individual component designs combined with tailored materials and production processes ready for large scale production. Under the motto “The Solution Provider,” the company will present selective innovative component solutions from all three areas in Hall 6, Booth D25. Furthermore, as an example for industrial applications, SGL Carbon will showcase at the JEC world a crossbeam made of carbon fiber reinforced plastics (CFRP) used in automated Schuler press lines.

•    Composite battery enclosures for e-mobility
•    Flexible new leaf spring generation for rear axles
•    Innovative component designs for passenger airplanes, helicopters and air taxis
•    Extremely lightweight and stable transfer beam for mechanical engineering

Selective applications with focus on serial production
In the field of automotive applications, SGL Carbon will present at the JEC World composite battery enclosures as a promising new application driven by increasing demand for electric vehicles and the resulting new flexible chassis platforms. The company demonstrates a prototype of a battery enclosure based on carbon fibers. However, hybrid composites with a mixture of glass and carbon fibers are also possible.

In the aerospace sector, SGL Carbon is also expanding its portfolio of realized projects and expertise relying on the trend to use more efficient materials and processes in this industry too.
In the area of primary structure components, the company will present a demo exhibit for the door frame of a passenger airplane realized in collaboration with external partners and based on 50k carbon fiber from the SGL Carbon, which is suitable for serial production.

Live simulations and intense exchange at the booth
Visitors can experience live how their ideas can be implemented both sustainably and cost-effectively in composites thanks to simulations. Experts from the company’s own Lightweight and Application Center demonstrate the path from the concept to virtual prototypes using simulation software, with the result visible either to the entire audience or just individual visitors. To prepare, interested parties can contact the team now at the following link: https://www.sglcarbon.com/anmeldung-jec.

On March 4, 2020, the SGL Carbon stand will host its traditional get-together for customers and friends starting at 4 p.m. – no registration necessary.
 

Following an in-depth analysis of the current business situation conducted by the new Group Management, Autoneum expects a net loss in the high double-digit million range for the full year 2019 due to the situation in North America and related one-time charges from impairments. Therefore, achieving the communicated mid-term targets will take more time.

A comprehensive assessment by the new Group Management focusing on Business Group North America and taking into account the course of business from January to November 2019 led to a revaluation of the situation. It has become apparent that the problems in North America are not limited to two US plants and deficient ramp-ups there. Accordingly, a comprehensive turnaround program focusing on operational excellence and the improvement of cost structures is being developed and implemented in Business Group North America.

As a result of the slowdown in the automotive industry and the continuing low market level forecasted in the medium term, the cost structure at the Group’s headquarters in Winterthur, Switzerland, has been adjusted, among other things, by selective staff reduction. To further reinforce new mobility activities, they will be concentrated at the Research and Technology Center in Winterthur. This will include the relocation of the Competence Center New Mobility from Sunnyvale (CA), USA, to Winterthur.

Due to the continuing losses of Business Group North America, Autoneum expects a net loss for the financial year 2019 in the high double-digit million range. In addition to current operating losses, this also includes one-time charges from impairments which are not cash-effective. To achieve the Group’s mid-term targets announced in March (“2019 Year of tidying, 2020 Year of transition, 2021 Return to sound profitability level), an additional year will therefore be needed.

With the announcement of the eligible vehicle models, the World Car Awards 2020 kickedoff today at the IAA Motor Show in Frankfurt, Germany. This year again, the majority of contenders is equipped with lightweight components for acoustic and thermal management from Autoneum. The world’s leading automobile industry awards will be presented at the New York Motor Show in the spring of 2020.

A total of 46 new vehicle models have passed the initial screening and are now contenders for trophies in the categories “World Car of the Year”, “World Luxury Car”, “World Performance Car”, “World Urban Car” and “World Car Design of the Year”, including five new fully-electric models alone. Whether it’s a lightweight underbody, a noise-absorbing carpet system or a heat-reducing engine encapsulation – most of the eligible vehicles benefit from Autoneum’s innovation leadership in thermal and acoustic management. Autoneum’s expertise extends to new forms of mobility such as electric vehicles: Also thanks to numerous Autoneum components, Jaguar’s fully-electric SUV “I-PACE” impressed the jurors for the World Car Awards 2019, which was the first model ever to be named “World Car of the Year”, “World Car Design of the Year” and “World Green Car” at the same time.

On the occasion of today’s eligibility announcement, Autoneum CEO Martin Hirzel said: “Once again, the contenders are testimony to our innovation leadership. The World Car Awards also confirm our forward-looking approach: Nominated e-models feature Autoneum components as well. Welcoming our industry’s transformation early on, we today supply environmentally sustainable, lightweight components for most electric models available worldwide.”

Gerry Malloy, President of the World Car Awards Association, added: “As a market leader, Autoneum is the ideal partner for us. Our shared commitment to innovation was a decisive factor in forming a partnership back in 2014. Nowadays, this is a crucial aspect for manufacturers and suppliers who wish to remain successful in times of industrial and technological change.”

The World Car Awards, which have been presented annually since 2004, are the world’s leading nd most widely recognized automotive industry awards. A jury comprising of more than 80 international automotive journalists selects winners in five categories. The winners of the 2020 World Car Awards will be announced in April next year at the New York Motor Show.