From the Sector

• Move is in line with global growth strategy with a strong focus in the Asia Pacific region
• Zhejiang plant will be able to produce 50,000 tons of nylon compounds annually in the longer term
• Plant will be located in the convenient transportation port area of DuShan Pinghu city

DOMO Chemicals, a leading producer of high - quality engineering materials for a diverse range of markets, has announced plans for a new state - of - the - art plant in Zhejiang, China. The new plant will be capable of producing 50,000 tons of sustainable and innovative engineered nylon compounds each year. The company signed a new factory project through “cloud contract” with PingHu DuShan port Economic Development District on February 20, 2020. Production is expected to commence in the fourth quarter of this year.

DOMO Chemicals will invest €12 million in the new plant, which will have more than 11,500 m 2-floor space. The company plans to install multiple production lines at the first stage of development, which would offer an estimated capacity of 25,000 tons/year. There will be enough additional space available to cope with future demand requirements. The move is in line with the company’s global growth strategy with a strong focus on the Asia Pacific (APAC) region.

•  Historically difficult market environment – trade tensions put textile value chain under pressure in 2019
•  Prices for standard viscose at a historic low
•  Positive development of the specialty fiber business with a revenue share of already 51 . 6 percent
•  Strategic investment projects are progressing according to plan
•  sCore TEN targets for 2024 defined – EBITDA of EUR 800 mn

Lenzing – Despite a generally difficult demand environment for textile fibers and a drastic drop in prices for standard viscose, the Lenzing Group recorded a solid business development in 2019. The disciplined implementation of the sCore TEN corporate strategy and the accompanying focus on specialty fibers once again helped to mitigate the effect of unprecedentedly low standard viscose prices.

As a result, revenue dropped by 3.3 percent from EUR 2.18 bn to EUR 2.11 bn in 2019, driven by lower selling prices as well as standard fiber volumes. Due to positive mix effects and more resilient specialty fiber prices, the share of specialty fibers increased from 45.5 percent to 51.6 percent of revenue. The earnings development was largely influenced by the decline in revenue, but also by negative currency effects on material and personnel costs. EBITDA (earnings before interest, tax, depreciation and amortization) fell by 14.4 percent from EUR 382 mn to EUR 326.9 mn. The EBITDA margin declined from 17.6 percent to 15.5 percent. Net profit, at EUR 114.9 mn, was 22.4 percent lower than in the previous year at EUR 148.2 mn. Earnings per share amounted to EUR 4. 63 ( 2018: EUR 5 . 61 ).

• Discontinuation of assembly at the Winterthur location confirmed
• Reduction of 87 jobs
• Comprehensive social plan in place

On January 29, 2020, Rieter announced its intention to discontinue the assembly of machines at the Winterthur location due to structural changes in the market situation. The consultation process with employee representatives was completed March 11, 2020. After intensive discussion and detailed examination of the submitted proposals, the discontinuation of assembly and the associated reduction of 87 jobs was confirmed.

The final position was communicated to the employee representatives and the Office for Economy and Labor of the Canton of Zurich. Rieter’s employees were informed of the result. The decision will be implemented gradually during 2020.

Rieter has a comprehensive social plan. The focus is on the reintegration of affected employees with the support of the Regional Employment Centre (RAV) as well as a job center and the avoidance of hardship cases. The company intends to reduce the headcount by means of workforce turnover and early retirement, however some layoffs will be unavoidable.

Rejects Importer Attempts to Remove China 301 Tariffs on Finished Products

The National Council of Textile Organizations (NCTO), representing the full spectrum U.S. textiles from fiber through finished sewn products, issued a statement today welcoming the Trump administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak, but the organization urged officials to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.

As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on Sept.1 from 15 percent to 7.5 percent. Finished apparel, home furnishings and other made-up textile goods equate to 93.5 percent of U.S. imports from China in the sector; while fiber, yarn, and fabric imports from China only represent 6.5 percent, according to government data.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers.

• U.S. employment in the textile supply chain was 594,147 in 2018.

• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018.

• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018.

• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available.

Diverging development in the two business units impact fiscal year 2019 of SGL Carbon – Group guidance for 2020 confirmed

• Consolidated sales revenues in fiscal year 2019 up by 4 percent to around 1.1 billion euros
• Consolidated recurring EBIT down by 25 percent to 48 million euros; record results of graphite specialities business did not fully compensate for the weak development in the carbon fiber business
• Composites – Fibers & Materials (CFM): Cyclical und structural weaknesses impact the result of the market segments Wind Energy, Textile Fibers and Industrial Applications, which have limited strategic significance in the medium term
• Graphite Materials & Systems (GMS): Sales and earnings on record level due to strong growth in the market segments Semiconductors and Automotive
• Non-cash impairment charge of around 75 million euros was recorded at CFM in the third quarter of 2019
• Free cash flow significantly improved
• Issue of a new corporate bond and early redemption of the 2015/2020 convertible bond has significantly improved the maturity profile
• SGL Carbon confirms guidance for fiscal year 2020: sales expected slightly below previous year; recurring EBIT approximately 10 to 15 percent below previous year level
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: “The financial development of the fiscal year 2019 conceals the fact that our strategic orientation is correct. This is evident from our growth and the increasing number of contracts and projects we acquired in our strategic core markets. Main drivers are the topics of sustainable mobility and energy as well as digitization. Therefore, we expect that we can grow our consolidated revenue by a mid to high single-digit percentage per year on average between 2020 and 2024.“

The fiscal year 2019 developed very differently in the two business units of SGL Carbon. The record results in the graphite specialities business could not fully compensate for the weak development in the market segments Wind Energy, Textile Fibers and Industrial Applications in the carbon fiber business. Group sales grew by 4 percent to 1.1 billion euros. Recurring Group EBIT declined by 25 percent to 48 million euros. Due to the ongoing weakness in the market segments Textile Fibers and Industrial Applications the business unit CFM recorded a non-cash impairment loss of 75 million euros in the third quarter of 2019. With minus 90 (prior year: plus 41) million euros, consolidated Group result declined significantly compared to last year’s good results. The Group confirms its guidance for 2020 published in October 2019.

Group sales are expected to decline slightly compared to the prior-year level, whereas Group recurring EBIT is expected to reach a result around 10 to 15 percent below the prior-year level. Consolidated net result of the Group in 2020 should strongly improve compared to prior-year level to a low double-digit loss.

• Historically difficult market environment – trade tensions put textile value chain under pressure in 2019
• Prices for standard viscose at a historic low
• Positive development of the specialty fiber business with a revenue share of already 51.6 percent
• Strategic investment projects are progressing according to plan
• sCore TEN targets for 2024 defined – EBITDA of EUR 800 mn

Despite a generally difficult demand environment for textile fibers and a drastic drop in prices for standard viscose, the Lenzing Group recorded a solid business development in 2019. The disciplined implementation of the sCore TEN corporate strategy and the accompanying focus on specialty fibers once again helped to mitigate the effect of unprecedentedly low standard viscose prices.
As a result, revenue dropped by 3.3 percent from EUR 2.18 bn to EUR 2.11 bn in 2019, driven by lower selling prices as well as standard fiber volumes. Due to positive mix effects and more resilient specialty fiber prices, the share of specialty fibers increased from 45.5 percent to 51.6 percent of revenue.
The earnings development was largely influenced by the decline in revenue, but also by negative currency effects on material and personnel costs. EBITDA (earnings before interest, tax, depreciation and amortization) fell by 14.4 percent from EUR 382 mn to EUR 326.9 mn. The EBITDA margin declined from 17.6 percent to 15.5 percent. Net profit, at EUR 114.9 mn, was 22.4 percent lower than in the previous year at EUR 148.2 mn. Earnings per share amounted to EUR 4.63 (2018: EUR 5.61).

• Technology for dyeing polyester and its blends

TERASIL® BLUE W high wash fastness dye raises operational excellence of mills, providing right-first-time results leading to savings of water, energy and costs.

Huntsman Textile Effects introduces TERASIL® BLUE W, the latest addition to the TERASIL® W/WW range of wash fast disperse dyes. TERASIL® Blue W is designed to meet all major requirements for high performance sportswear and athleisure wear.

Polyester fiber has become the fiber of choice in the textile industry, the demand for polyester and man-made fibers is expected to rise over the long term, as sports and athleisure apparel markets expand around the world. At the same time, leading brands, retailers and mills are increasingly focused on achieving brilliant and deep shades, consistent shade reproducibility, as well as water, energy and cost savings.

TERASIL® BLUE W is developed by Huntsman Textile Effects to provide the leading solution for meeting industry’s wash fastness requirements. TERASIL® BLUE W offers an attractive shade and high build-up for deep blues which stays vibrant. TERASIL® BLUE W also provides quality assurance as products are bluesign® approved and suitable for STANDARD 100 by OEKO-TEX® certified textile products.

National Council of Textile Organizations (NCTO) President and CEO Kim Glas issued the following statement today in response to the Congressional-Executive Commission on China’s staff report on the forced labor of Uyghurs and other minorities in China to produce consumer products for global companies.

We share the concerns of the bipartisan China commission regarding forced labor in China that is used to produce goods for global companies. We agree with the findings and the commission’s recommendations to the administration and Congress to take action against the systemic abuse of forced labor.

As the commission’s report details, Chinese apparel exporters have clearly profited from the virtual enslavement of this minority population, and we call for continued scrutiny and the end to this exploitation of a repressed people. The commission has served a fair warning to U.S. businesses and consumers to not be complicit in these forced labor practices.

NCTO is a Washington, DC-based trade association that represents domestic textile manufacturers, including artificial and synthetic filament and fiber producers. 

• U.S. employment in the textile supply chain was 594,147 in 2018. 
• The value of shipments for U.S. textiles and apparel was $76.8 billion in 2018. 
• U.S. exports of fiber, textiles and apparel were $30.1 billion in 2018. 
• Capital expenditures for textile and apparel production totaled $2.0 billion in 2017, the last year for which data is available

Stephan Trubrich assumed the new role as Vice President Capital Markets, effective as at March 01, 2020. In his capacity, Trubrich will oversee the Lenzing Group’s capital markets activities, including Investor Relations and ESG (Environmental, Social & Governance) Reporting. He will report directly to Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

Stephan Trubrich has more than 9 years of experience in the field of equity research with Kepler Cheuvreux, UniCredit and Deutsche Bank. For many years, he has been Austria’s top ranked equity analyst. Trubrich holds a Master’s Degree in Science in Accounting and Finance from Aston Business School, UK. He is also a CFA Charterholder.

Stephanie Kniep, Head of Investor Relations, will leave Lenzing, effective as of April 30, 2020 to pursue new endeavors.

Erzgebirgisches Technologieunternehmen wirkt an Transporttasche der Zukunft mit - futureTEX Vorhaben Inmouldtronic verbindet Elektronik mit Textilien

Als Zulieferer für Elektromobilität ist das erzgebirgische Unternehmen WESKO GmbH (WESKO), Stollberg europaweit erfolgreich. Die Produkte aus Werkzeug- und Formenbau finden bei nahezu jedem Automobilhersteller Anwendung.

So stellt WESKO auch Prüfadapter für Prüfanlagen von Batterien her, die in der E-Mobilität, z. B. bei Daimler, zum Einsatz kommen. Präzision und innovative Lösungen sind Schlüsselkomponenten des Unternehmens und entscheidend, sowohl für die Entwicklung als auch für die Fertigung von Spritzgieß- und speziellen Sonderwerkzeugen.

Durch den Strukturwandel hin zur E-Mobilität erzielte WESKO in den letzten drei Jahren ein durchschnittliches Wachstum im zweistelligen Bereich. Darüber hinaus erwartet das Werkzeugbauunternehmen weitere Zuwächse, zum einen durch die Produkte in den Bereichen Elektrik/Elektronik und Interieur, als auch durch die Arbeit als Kunststoffserienfertiger. Kunststoffteile spielen bei Elektrofahrzeugen durch die Gewichtseinsparungen eine große Rolle.

Michael Wiesehütter arbeitete seit 2009 als Prokurist und Kaufmännischer Leiter bei WESKO. Seit 2019 ist er nun der Geschäftsführer. Im futureTEX-Interview gibt er einen Einblick, wie das weitreichende Know-how und die langjährige Erfahrung des Unternehmens im Werkzeug- und Formenbau mit der Arbeit als Vorhabenpartner im Projekt futureTEX einhergehen.

Drei Fragen an Michael Wiesehütter, Geschäftsführer der WESKO GmbH, Stollberg

Welche Ziele verfolgen Sie mit Ihrer Arbeit im Projekt futureTEX?
Unser Ziel im Vorhaben Inmouldtronic war es, gemeinsam mit den Vorhabenpartnern intelligente textile Transporttechnik für Fahrradkuriere zu entwickeln. Wir realisierten die Idee einer smarten Tasche mit Standardadapter. Sensible Transportgüter, wie z. B. Medikamente, sollen unabhängig von überlasteten Straßen in Großstädten oder verteuerter Energie sicher ans Ziel gebracht werden. Um Produkte zu befördern, ist es unabdingbar, vernetzbare textile Geräte mit standardisierten Schnittstellen zu entwickeln, die eine Stromversorgung sowie einen Transfer mit Kabel oder sogar kabellos ermöglichen.
Im weiteren Anwendungsfeld eHealth des Projekts, nutzen wir die Technologie der leitfähigen Fasern in textilen Strukturen für den Bekleidungsbereich. Diese wurden mit einer Software zur Auswertung medizinisch relevanter Daten gekoppelt. Die Integration einer Funktionsdiagnostik in entsprechende Kleidung unterstützt, z. B. die Überwachung von Patienten oder Leistungssportlern. Über ein modulares Konzept werden z. B. Informationen über die Temperatur aufgezeichnet.

In welchem Vorhaben arbeiten Sie aktiv mit? Was sind Ihre Aufgaben?
WESKO war von 2016 bis 2019 im Umsetzungsvorhaben Inmouldtronic als Vorhabenpartner aktiv. Unsere Aufgaben bestanden darin, die einzelnen Bestandteile zu konstruieren, um später die Werkzeuge, als auch die Formeinsätze für das Spritzgießen der Steckverbinder zu erstellen. Spritzguss ist ein Verfahren, bei welchem Kunststoff unter Druck in ein Werkzeug eingespritzt wird, um dann als Fertigteil herauszukommen. Einmal angefertigt, können die Werkzeuge mit austauschbaren Formeinsätzen immer wieder die gleichen Bauteile fertigen, wodurch die Herstellungskosten erheblich sinken.
Zudem entwickelten wir die grundlegenden technischen Anforderungen für die einzelnen Bauteile der späteren Transporttasche: vom Steckverbinder über die ins Textil zu integrierenden elektronischen Komponenten bis hin zur textilen Verschaltung. Schlussendlich realisierten wir eine vollständige Struktur für den gesamten Herstellungsprozess, unter Berücksichtigung des Gefahrenpotentials.

Welchen Mehrwert möchte Ihr Unternehmen aus der Arbeit in futureTEX ziehen?
Durch die Beteiligung in den F&E-Verbundvorhaben haben wir Gelegenheit, von Beginn an in verschiedenen innovativen Themen mitzuarbeiten und die Entwicklung sogar maßgeblich zu beeinflussen. Im Idealfall generieren wir hierdurch künftiges Neugeschäft, ernten so die Früchte unserer Entwicklungsarbeit und sind mit neuen Technologien und Entwicklungen als Erstes am Markt. Besonderes Innovationspotenzial bietet dabei die interdisziplinäre Zusammenarbeit mit Akteuren verschiedener Branchen. Weiterhin gibt es im Bereich unserer Kernkompetenz „Steckverbinder“ auch eine Vielzahl denkbarer Anwendungsfälle in Marktsegmenten, in denen wir aktuell noch nicht unterwegs sind und die wir gern erschließen möchten.