From the Sector

AkzoNobel has announced that Gregoire Poux-Guillaume will become the company’s new Chief Executive Officer (CEO) as of November 1, 2022.

He will succeed Thierry Vanlancker, who has been CEO and member of the Board of Management since 2017, and whose term of office is coming to an end.

Gregoire (52), a French national, is an international business leader with 25 years of experience. He has a distinguished track record of building successful, profitable businesses in challenging environments, accelerating business growth and improving margins.

Previous roles include CEO of Sulzer, CEO of GE Grid Solutions (previously Alstom Grid) and Senior Managing Director of CVC Capital Partners.

AkzoNobel has updated its Q2 outlook based on the impact of the evolving business environment, including the effect of China lockdowns and the slower start to the EMEA DIY season.

Overall demand signs for paints and coatings remain robust, with North America still constrained in raw material availability and logistics, but sequentially improving. In Europe in particular, macro-economic uncertainty related to consumer confidence has increased.

Consumer demand in the Deco DIY channels in Europe – which represent 40% of total Deco EMEA revenue – got off to a slow start in Q2, subsequently impacted by inventory reductions in the DIY channel. In June, Deco DIY channel demand improved back to 2019 levels. Despite share gains and our Deco Professional business performing as anticipated, the total Q2 operating income for our Decorative Paints segment is expected to be down by approximately €50 million versus expectations entering the second quarter.

COVID-19 lockdowns in China during Q2 impact both paints and coatings. This impact was mainly on our coatings business, while paints was able to almost offset by progressing with its geographical expansion initiatives. The re-opening in June is showing a positive rebound, but not enough to catch up on all the missed revenue in the quarter, resulting in a negative operating income impact of approximately €40 million for the quarter, versus expectations entering Q2.

AkzoNobel continues to focus on achieving its €2 billion adjusted EBITDA target for 2023, despite the volatile market environment having a material impact on the company’s Q2 2022 financials.

Electronics For Imaging, Inc. announced that it has acquired Inèdit Software S.L., a developer of raster image processors (RIPs) and related software for digital industrial textile printing. The acquisition extends EFI’s strategy to accelerate digital transformation in industrial print through investments that advance the company’s presence and capabilities in Packaging & Corrugated, Display Graphics, Textile, and Building Materials/Décor applications. Inèdit will be integrated into the Reggiani textile business.

Similar to EFI’s Fiery® digital front end and RIP technologies for the digital commercial and industrial printing markets, Inèdit’s neoStampa product is a recognized benchmark solution for RIPs in digital textile printing. The Inèdit product portfolio features advanced workflow solutions for textile profiling, calibration, design integration and much more. Inèdit’s RIP technology is employed across the worldwide textile industry and is one of the leading RIPs used to drive EFI Reggiani digital printers and other digital industrial textile printer brands. As part of EFI Reggiani, Inèdit will continue to support products for a broad range of digital printers.

AkzoNobel is to further strengthen its African footprint after reaching an agreement with Kansai Paint to acquire its paints and coatings activities in the region. Completion, which is subject to regulatory approvals, is expected during the course of 2023.
 
Present in 12 countries in Africa, Kansai Paint has regional consolidated revenue of around €280 million. The transaction includes the Plascon brand, which has more than 100 years of heritage in South Africa. Together with our own Dulux brand, they’re the longest-established paint brands in the region. The intended acquisition also includes automotive and protective coatings, and coatings for wood and coil.
 
“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth,” says AkzoNobel CEO, Thierry Vanlancker. “Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers.”
 
Adds Kunishi Mori, Kansai Paint’s president: “We are convinced that AkzoNobel is the best owner as AkzoNobel considers the decorative paints business as a core business and will therefore be able to unlock the full potential of the business, thereby contributing to the development of the African economy.
 
”For Prejay Lalla and Arvind Shekhawat, Chief Executive Officers of KPAL and KPEA (the respective Africa entities being sold by Kansai Paint in this transaction), this agreement is an opportunity to further enhance growth. “We believe that AkzoNobel will be the owner who will elevate the business to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities as well as the long-term success of its paint businesses in Africa.”
 
The intended acquisition follows on from a series of recent acquisitions by AkzoNobel across paints and coatings over the last two years, including Titan Paints in Spain and Portugal, New Nautical Coatings in the US and, most recently, Grupo Orbis in Latin America.

ISKO’s partnership with PAOLO GNUTTI, featuring exclusive creations for the luxury segment, landed at Denim Première Vision in Berlin. Merging sustainable and innovative fashion with new premium aesthetics.

The collection, launched for the first time at Denim Première Vision, embodies ISKO’s most revolutionary technological innovations combined with the long-standing expertise of Paolo Gnutti, who explored aesthetics highly profiled to the unique needs of the luxury segment through 7 main moods:

1. Denim addicted, celebrating total denim looks, offering classic silhouettes mixed up with revised volumes and details;
2. Y2k, bringing back the 2000s typical style featuring exposed skin, low waist pants, micro tops, mini skirts, shrunken garments, butterfly decorations and embellishments;
3. Fanaticism, featuring bright, bold colors, intricate prints and logos combined with details that meet ample volume styles;
4. Bounder glam, all about glammed up leather effects inspired by bikers' unapologetic style and applied to oversize fits, cutouts and lace-ups styles;
5. Moto’roll, where the iconic 60s and 70s biker style is back with a modern twist and a vast range of treatments and fabrics, offering men and women true crowd-pleasers;
6. Gingham mania, an in-depth exploration of the gingham trend which finds expression through various dimensions and techniques that cater to any silhouette;
7. Rugged re-made, which celebrates workwear and historical garments creating a style that combines history with technologies, solutions and treatments to recreate that vintage look dear to the heart of lovers of denim heritage.

Indorama Ventures Public Company Limited (IVL) reported a strong 1Q22 result, building on its record FY 2021 performance as the pandemic continued to retreat, driving demand across the company’s global integrated portfolio.

IVL achieved 1Q22 Core EBITDA of US$650 million, up 41% QoQ and 77% YoY, and a 4% increase in production volumes to 3.80 MMT. All three of IVL’s business segments grew as the company’s leading global position benefited overall in an environment of higher crude oil prices, increased ocean freight rates and a strengthening US dollar, led by resurging consumer demand and global mobility.

IVL’s Integrated Oxides and Derivatives (IOD) business benefits from a high crude oil price environment, as its shale gas advantage supports MTBE and MEG margins. As ocean freight rates increase, IVL’s PET and Fibers segments gain due to increased import parity pricing in Western markets, where about two thirds of its portfolio is situated. Management’s agile response to hedging and levying surcharges has helped to partially recuperate the surge in energy and utility costs in Europe as a consequence of the Russia-Ukraine conflict.

The re-opening of economies bodes well for demand across IVL’s portfolio. However, China’s ongoing pandemic lockdowns impacted downstream polyester demand resulting in weakened MEG spreads. IVL’s businesses trade in US dollars and a strengthening dollar has positive impact, reducing conversion costs in emerging economies where IVL has a strong local presence.

Combined PET segment reported Core EBITDA of US$435 million, up 63% QoQ and 67% YoY supported by the reset of PTA/PET contracts at the end of 2021. IVL expects the tight supply-demand environment to continue through 2022, boosted by the upcoming peak summer season.

IOD segment achieved Core EBITDA of US$126 million, up 3% QoQ and 258% YoY as MTBE margins benefited from higher crude oil prices, demand remains strong for downstream products, and as the commissioning of the Lake Charles cracker contributes to earnings in 2022. The integration of the Oxiteno acquisition, completed in April, will bring additional upside to IOD from 2Q22.

Fibers segment delivered Core EBITDA of US$85 million, an increase of 4% QoQ and 17% YoY. Demand across the three Fibers verticals is stable with domestic sales yielding better profitability, while higher freight rates weighed on margins on export volumes from Thailand, Indonesia and India, and increased energy and utility costs impacted European operations.

1Q22 Performance Highlights

• Consolidated Revenue of US$4,444M, an increase of 12% QoQ and 37% YoY
• Record Reported EBITDA of US$784M, a YoY growth of 63%, and Core EBITDA of US$650M, a YoY growth of 77%
• Production volumes up 4% YoY to 3.80 MMT
• Reported Net Profit of THB 14,070M, Core Net Profit of THB 10,578M
• Reported EPS of THB 2.47 (LTM1Q22: 5.98) and Core EPS of THB 1.85 (LTM1Q22:4.96)
• Record Core EBITDA Margin at 15%

ITM 2022: Rieter Further Improves Attractiveness of Ring and Compact-Spinning System

• Autoconer X6 is the key machine for highest efficiency
• Roving frame F 40 sets industry standard at 90 seconds only for doffing
• New top and bottom aprons NO-79201 offer greater durability
• i-Bearing enables 24/7 visibility for fast and smart decisions
• Berkolizer pro introduces easily adjustable UV treatment as industry-first
• European roll out of precision winder NEO-YW to launch in Turkey

Rieter is presenting the Autoconer X6 at the upcoming ITM 2022 in Istanbul (Turkey), taking place from June 14 to June 18, 2022, which further improves the attractiveness of the company’s ring and compact-spinning offering by completing the system. In addition, Rieter is showing the roving frame F 40 which doffs at 90 seconds only. SSM’s NEO-YW precision winder is launching into the European market while three key innovations in components are being introduced.

Opportunities and Challenges to the Spinning Industry

2021 was an unprecedented year for the global spinning industry. Driven by the market recovery after the pandemic and the regional shift of the industry, customers invested in new spinning systems at levels never experienced before. And despite the current uncertainties, customers continue to invest.

As market and technology leader, Rieter succeeded in this environment in posting a record order intake for 2021. This is clear evidence of the high level of trust customers have in Rieter. Dr. Norbert Klapper, CEO of Rieter, says: “Systems, machines, components, parts and services from Rieter have ensured competitiveness and success for customers over many years in the past and will continue to do so in the future.”

Dr. Klapper also comments on the challenges that lie ahead for the industry as it takes advantage of market opportunities: “The pandemic is not over yet, and business is exposed to dramatic cost increases as well as shortages in material supplies and logistics. In difficult times, it is important to work together even more closely than under normal circumstances. It’s all about true partnership and trust – the basis of Rieter’s business for 226 years.”

• Hundreds of designers, brands, creators, e-com platforms, manufacturers, and virtual fashion pioneers expected to attend VIP events at Kornit’s headquarters, R&D and production centers, and in major venues of Tel Aviv     
• Kornit will unveil future technologies and solutions, including the revolutionary Kornit Apollo fully-digital mass production direct-to-garment (DTG) platform – considered a future game-changer for the mainstream mass production of fashion and apparel, a multi-billion-dollar market opportunity – constrained today by antiquated, analog, and polluting methods of production
• Mass production of textile, traditionally off-shored, is going through an accelerated shift to near-shore production, significantly shorter production runs, lean-to-no inventory risk, and unlimited creativity and flexibility for designers and creators – all possible with Kornit’s new solution for mass production
• Kornit will also unveil its Kornit Atlas MAX Poly – predicted to transform the multi-billion-dollar professional and recreational sports apparel and teamwear markets, suffering today from major limitations with mass customization of polyester

Kornit Digital Ltd. (NASDAQ: KRNT) (“Kornit”), a worldwide market leader in sustainable, on-demand digital fashionx and textile production, announced today the Company will present the convergence of design, technology, and sustainable fashion at Kornit Fashion Week Tel Aviv 2022, April 3rd – 6th. Rewriting the rules for fashion and textiles, the transformative event will unveil vibrant runway collections together with game-changing industry-first product and technology introductions that bring digital production to the mainstream.

The four-day event is attended by some of the top designers, retailers, brands, fulfillers, and ecommerce players, in addition to global investors and press – and will include exclusive VIP experiences demonstrating the confluence of the design, technology, and fashion worlds. Together, these three elements are central to Kornit’s 4.0 strategy, bringing sustainable, on-demand fashion to the mainstream with end-to-end workflow solutions.

Kornit Fashion Week Tel Aviv 2022

Kornit Fashion Week features an immersive runway showcase produced by worldwide fashion icon, producer, director, and entrepreneur Motty Reif. The week follows successful Kornit events in 2021 across Los Angeles, New York, Milan, and Tel Aviv – displaying the creative freedom associated with sustainable, on-demand fashion fulfillment. Attendees will experience runway events showcasing designer creativity across a broad array of collections. These fascinating collections were created in just a few weeks, unlike typical fashion and textile production processes that take over six months.

Industry-First Introductions

Looking behind the scenes at Kornit Fashion Week, attendees will witness Kornit’s disruptive mass production technology in action. Unveiled for the first time, the Kornit Apollo direct-to-garment (DTG) system addresses accelerated post-pandemic market trends for streamlined supply chains and production nearshoring. Demonstrated at an exclusive VIP event, Kornit Apollo features the Company’s proven MAX technology offering the highest retail quality combined with full automation control and integrated smart curing processes, utilizing functionality from Lichtenau, Germany-based Tesoma (Kornit’s recently announced acquisition). The solution is the most comprehensive digital, single-step end-to-end system for nearshore short-and-medium-runs mass production and offers optimal TCO and highest output per operator. The result far surpasses performance of screen printing and analog techniques. With early customer engagements in the second half of 2022, the system will be available mid-2023.

Physical and Virtual Worlds

Kornit enables customers to exchange supply chain headaches and materials waste for unsurpassed creativity and a frictionless pixel-to-parcel-to-doorstep production experience. Supported by the KornitX workflow solution, customers have access to a scalable and modular ecosystem for on-demand decorated apparel and textiles. Supporting diverse supply chain models, the infrastructure-agnostic system enables on-demand, automated production, end-to-end from initial order to package delivery.

• Kornit Digital Introduces High-Volume Digital Production Solution for Vibrant Decorative Designs on Polyester and Polyester-Blended Apparel
• Kornit Atlas MAX Poly to Transform Professional and Recreational Sportswear, Teamwear, and Sports Brands; Injecting Life into Apparel with Power of Design Across Full Color Gamut

Kornit Digital Ltd. (NASDAQ: KRNT) (“Kornit”), a worldwide market leader in sustainable, on-demand digital fashionx and textile production, introduced today its distinctive Kornit Atlas MAX Poly system – an industry-first direct-to-garment (DTG) solution delivering superior-quality digital decoration for vibrant, colorful design on polyester and poly-blended apparel.

Kornit’s Atlas MAX Poly capitalizes on the demand for fashionable, unique sportswear and apparel. As the industry emerges from a post-pandemic environment in which athletic and leisurewear became mainstream, there is increasing demand for apparel combining polyester and poly-blends with vivid designs across a range of colors. Atlas MAX Poly can transform the multi-billion-dollar professional and recreational sports apparel and teamwear markets, limited today by limitations in mass customization of polyester.

“Kornit Atlas MAX Poly is a game-changer,” said Omer Kulka, Chief Marketing Officer at Kornit Digital. “As fashion and sports apparel merge, there’s new opportunity for innovative fashion on polyester, currently the fastest-growing textile vertical. For the first time, recreational sportswear, promotional, and sports brands can embrace vibrant and colorful design with Kornit’s proven MAX technology – setting superior quality standards for on-demand production previously not possible.”

Unveiled during Kornit Fashion Week Tel Aviv 2022, Atlas MAX Poly incorporates Kornit’s field-proven MAX technology for high-quality premium decoration, process automation, and smart autonomous quality control. With Kornit’s XDi decorative applications, Atlas MAX Poly enables endless designs and creativity on polyester, and empowers new styles for multiple effects and unlimited combinations such as emulating threadless embroidery, high-density vinyl, screen transfer emulations, and 3D effects.

The solution is compatible with mesh and plain fabrics, including brushed polyester, while maintaining durability and breathability. It brings the highest throughput for on-demand polyester decoration, reducing total cost of ownership to drive profitability. Customers gain competitive advantage via Pantone color-matching and a wide color gamut including neon colors for bright and vibrant impressions, using single-step mechanisms minimizing production footprints while maximizing versatility.

Beyond superior quality, graphics, color, and application variety, Kornit Atlas MAX Poly offers efficient, reliable, profitable end-to-end polyester production via:

• Kornit’s ActiveLoad automated garment-loading and pallet adjustment for repeatable, high-quality output with minimal errors reducing time and waste, eliminating operator ramp-up and boosting throughput up to 20%.
• Seamless integration with KornitX Global Fulfillment Network, enabling a pixel-to-parcel-to-doorstep experience. This unleashes untapped demand for polyester short-run production, personalization, and disruptive direct-to-fan and direct-to-recreational business models.
• Integration with KornitX’s workflow ecosystem and Kornit Konnect™ dashboard, optimizing process visibility and control, adding data-driven insights for production floor efficiencies.

In 2021, nonwovens production in Greater Europe increased in volume by 2.0% to reach 3,120,967 tonnes (and 87.6 billion square metres).

EDANA, the international Association serving the nonwovens and related industries today released its statistics on Nonwovens Production and Deliveries for 2021. Following the impressive growth recorded in 2020, the updated figures for Greater Europe (incl. Western and Eastern Europe countries, Turkey, Belarus, Russia and Ukraine) highlight again the ability of the European industry to innovate and to invest in order to meet the challenges of the pandemic crisis.

In 2021, nonwovens production in Greater Europe increased in volume by 2.0% to reach 3,120,967 tonnes (and 87.6 billion square metres). Since 2019, the European output increased by nearly 9%.

Jacques Prigneaux, EDANA’s Market Analysis and Economic Affairs Director commented “This 2% average growth is in line with European forecasts disclosed in October 2021 in our Global Nonwoven Markets 2020-2025 report. In 2021, significant growth areas for nonwovens were recorded in building construction (+17.4%), agriculture (+11.3%), electronic materials (+10.1%) and air filtration (+9.1%). Countering this, a further decline of -1% was recorded in automotive interior applications. In some market segments, a comparison with the pre-COVID situation is probably more relevant. This is particularly true in hygiene, medical and wipes nonwovens, which were almost flat or slightly decreasing compared to the level reached in 2020, but still much higher than in 2019”.

He added: “Looking at the different production processes of nonwovens, various trends were observed in 2021. The production of fiber-based materials, including Drylaid, Wetlaid, and Airlaid technologies, recorded divergent growth rates (respectively +2.4%, +1.1% and -4.8%), and spunmelt nonwovens recorded a growth rate of +3.1%. In Drylaid, the highest growth in tonnes was observed in needlepunched, with a 6.4% increase. The production of drylaid-hydroentangled, which peaked in 2020, was at the same level a year later”.