From the Sector

Solid net profit and further strengthening of the balance sheet thanks to significant revenue and profitability increases

The automobile industry recovered significantly in the first half of 2021 compared to the prior-year period, which had been impacted by the effects of the coronavirus pandemic. Autoneum benefited from the market dynamics and managed to increase its revenue in local currencies by 24.3% in the first semester. EBIT rose to CHF 44.7 million thanks to higher revenues and further progress in the turnaround in North America, corresponding to an EBIT margin of 5.0%. The strong free cash flow of CHF 67.2 million has allowed for a further reduction in net debt.

In the first half of 2021, 29.2% more light vehicles were produced worldwide than in the coronavirus-hit first half of 2020. The market recovery, though significant, was hampered by the global semiconductor shortage, which led to temporary production stoppages and manufacturers producing lower vehicle volumes. Autoneum increased revenue in local currencies by 24.3% in the first six months. In Swiss francs, revenue climbed by 21.9% to CHF 890.3 million. Business Group SAMEA (South America, Middle East and Africa) grew clearly above market, while the shortage of semiconductors in North America in particular impacted the production of models supplied by Autoneum and the revenue development of Business Group North America.

Autoneum managed to improve its operating result (EBIT) considerably by CHF 76.5 million in the first six months compared to the prior-year period. In addition to higher revenues, this was mainly due to the immediate and sustainable adjustment of the cost structure in all Business Groups to the new market reality in 2020 as well as the improved earnings achieved in the turnaround program in North America. Higher material costs, however, had a negative impact on the operating result. EBIT in the amount of CHF 44.7 million (prior-year period: CHF –31.8 million) corresponds to an EBIT margin of 5.0% (prior-year period: –4.4%).

The development of global light vehicle production in the second half of 2021 remains uncertain due to the semiconductor shortage. Although there is a high demand from end customers in all regions, it can be assumed that the shortage of chips will continue to impact automobile production in the second half of the year, but not as severely as in the second quarter of the first half-year.

Revenue in the second half-year 2021 is expected to be higher than in the first semester. Based on the unfavorable allocation of semiconductors to vehicle models supplied by Autoneum in the first half of 2021, revenue development is likely to be slightly below market for the full year 2021. With an easing of the semiconductor shortage, this will normalize.

Devan Chemicals has been supporting high performance sport in the UK and Belgium with its ‘cool comfort technology’ Moov&Cool.

Worldwide, hot temperatures are a new reality that brings extra challenges for athletes. Thermoregulation technology is becoming more and more important in order for athletes to perform at their best on the pinnacle of sports.

Working alongside the English Institute for Sport (EIS) and Sally Cowan Ltd, the technology is being applied to garments with the aim of improving the thermal comfort of elite athletes.

Moov&Cool consists of a multi-functional polymer technology that proposes to absorb heat during performance and improve the moisture management properties of the fabric. The treatment has been designed to simultaneously react to sweat build up and heat emission.

In Belgium, Devan has been involved in the Gold2Gold project carried out by Sport Vlaanderen. Gold2Gold is a unique collaboration between sports, government and the industry to prepare Belgian athletes to perform better in hot environments during world-level championships. Thermoregulating technology is increasingly becoming a key aspect of endurance performance for elite athletes. At that top level, small differences in body core temperature can make the difference between being on the podium or sometimes not even finishing the race.

Schoeller Textil AG, the Swiss textile and technology company, announces a shift in leadership as Joachim Kath takes over as CEO. Following a 10-year career at the global textile solutions brand, CEO Siegfried Winkelbeiner is moving into his retirement later this month. Joachim Kath, who comes from the chemical industry, has been working closely with Winkelbeiner as COO at Schoeller for the past year and a half.

The transition comes after long-term planning. Since February 2020, and in close partnership with Siegfried Winkelbeiner, Joachim Kath (on the left) has been preparing as Schoeller COO to take over its management. Joachim Kath originally comes from Flensburg (DE) and, following his studies of Chemical Engineering in Karlsruhe, shaped his professional career in the chemical industry with Ciba (-Geigy) / BASF in Basel (CH). His career over 30 years has incorporated engineering, production and marketing & sales in diverse management functions – in a wide range of business segments for various industries and areas of application around the globe. Joachim Kath spent 12 years of his career dedicated to textile finishing, with a period of intensive travel in Asia and a 3-year stay in the USA.

Asked how he sees himself, Joachim Kath said: “The common thread running through all my assignments and business activities is process orientation, interest in new paths, and an instinct for what is feasible – with the goal of achieving customer benefits and satisfaction. Kath aims to ensure that Schoeller can continue to face the challenges of changing market requirements with outstanding and exceptional products, while evolving and innovating to stay ahead of consumer needs for the future. High performance capability, sustainable product development, premium quality, reliability, productivity, and keeping the customer as the central focus of all activities continue as essential keys to Schoeller’s continued business success.

ISKO announces its participation in CSAIL’s Alliances programme, a collaboration with CSAIL researchers, students and industry partners. Through participation in the programme, ISKO will contribute its expertise in textile innovation and collaborate on the research and development of smart textiles and wearable technologies.

The company joins a network of 26 industries – from startups to big organizations – including AI and machine learning, aerospace, healthcare, life sciences and telecommunications, as well as retail, media and entertainment.

With the goal of overall advancement of the textile and denim industry through the development of smart and wearable solutions, ISKO is stepping up to lead the change through these technologies and their many possible end-uses. The work is done in compliance with ISKO’s Responsible Innovation™ approach.

ISKO brings its innovative and agile structure, impressive production capacity and textile knowledge to the CSAIL programme which has over 1200 people, 60 research groups, 120+ researchers, 600+ students and over 900+ active projects.

Autoneum carpet systems already meet high standards of sustainable mobility due to their high content of recycled fibers. Thanks to an alternative backcoating (ABC) process, Autoneum carpets are now becoming even more environmentally friendly: By replacing the latex commonly used in standard backcoatings with thermoplastic material, the recyclability of carpets at the end of product life is further  improved. In addition, the innovative manufacturing process greatly reduces water and energy consumption and thus CO2 emissions in production.

Lightweight, textile-based carpet technologies such as Di-Light or Relive-1 significantly improve the environmental performance of carpets. For example, Di-Light-based carpets consist of up to 97% recycled PET; aside from that, they are around 20% lighter than conventional needlepunch carpets, thus contributing to lower fuel consumption and CO2 emissions from vehicles. In addition, Autoneum needlepunch carpets are now even more sustainable thanks to the innovative ABC process, which uses a thermoplastic adhesive instead of latex in the backcoating: Unlike latex, thermoplastic adhesives can be heated and melted down together with the carpet components made of pure PET at the end of the product life cycle, which facilitates recycling considerably. Furthermore, since the fibers of the thermoplastic mono-material are easier to open, carpet cut-outs can be reclaimed more easily, thereby reducing the consumption of natural resources as well as waste volumes and thus CO2 emissions. The environmental  performance of Autoneum’s needlepunch carpets, which already contain a high proportion of recycled PET, is thus further improved.

Moreover, backcoatings without latex improve the sustainability of carpets not only thanks to better recyclability at the end of the product life cycle. Since the application of the thermoplastic adhesive using the innovative ABC process consumes significantly less energy than the production of latexbased backcoatings and does not require any water at all, the environmental impact can already be minimized in the manufacturing process. Additionally, thermoplastic adhesives developed in-house by Autoneum will open up new possibilities in the future for adapting backcoatings to the individual needs of vehicle manufacturers in terms of their acoustic performance, stiffness and abrasion resistance.

Models from various customers in Europe and North America are already equipped with latex-free needlepunch carpets from Autoneum. In the near future, backcoatings with thermoplastic adhesives will also be used for Autoneum’s tufted carpets. Production of the new, even more sustainable generation of tufted carpets is scheduled to start in early 2022.

Some of the newly added substances are used in consumer products such as cosmetics, scented articles, rubber and textiles. Others are used as solvents, flame retardants or to manufacture plastics products. Most have been added to the Candidate List because they are hazardous to human health as they are toxic for reproduction, carcinogenic, respiratory sensitisers or endocrine disruptors.

Companies must follow their legal obligations and ensure the safe use of these chemicals. They also have to notify ECHA under the Waste Framework Directive if their products contain substances of very high concern. This notification is submitted to ECHA’s SCIP database and the information will later be published on the Agency’s website.

Background
The Candidate List includes substances of very high concern that may have serious effects on our health or the environment. These substances may be placed on the Authorisation List in the future, which means that companies would need to apply for permission to continue using them. The Candidate List has now 219 entries – some of these cover groups of chemicals so the overall number of impacted chemicals is higher.
 
Under the REACH Regulation, companies may have legal obligations when their substance is included – either on its own, in mixtures or in articles – in the Candidate List. Any supplier of articles containing a Candidate List substance above a concentration of 0.1 % weight by weight has to give sufficient information to their customers and consumers to allow safe use.
 
Importers and producers of articles containing a Candidate List substance have six months from the date of its inclusion in the list (8 July 2021) to notify ECHA. Suppliers of substances on the Candidate List (supplied either on their own or in mixtures) have to provide their customers with a safety data sheet.
 
As of 5 January 2021, suppliers of articles on the EU market containing Candidate List substances in a concentration above 0.1% weight by weight must notify these articles to ECHA’s SCIP database. This duty comes from the Waste Framework Directive.
 
More information on these obligations and related tools are available here.

Iluna Group comes back to Milano Unica with a great and important goal: to relaunch the qualities and dimensions of sustainability by going beyond the ingredient.

Iluna’s new path, which was born in a moment when the market seems to speak about “fragility”, begins with the investment in the renewal of machines, which allow it to fly ever higher in terms of high-tech developments, quality, definition, effects of yarns and patterns. The journey into the new dimension of responsible quality continues with ad hoc developments in the field of GRS (Global Recycled Standard) certified recycled yarns, aimed at unprecedented effects both in look, in performance and in the hands of fabrics. Including cord yarn, shiny threads and an expansion of the range of GRS yarns, previously available only opaque. The cord yarn is a precious yarn with a ROICA™ EF premium stretch yarn core, GRS certified and developed with 50% of pre-consumer waste materials content - double, covered with an equally recycled shiny thread; the bright and translucent is instead to add brilliant effects so far not possible with a GRS yarn.

The printing processes are also born from this constant search for innovation towards new materials and new techniques, becoming more and more sustainable: Global Recycle Standard (GRS)-certified sublimation printing and register printing carrying Global Organic Textile Standard (GOTS) certification. This one overlap exactly on the design and color the details, reaching where the dye cannot reach.

Diversification has become essential in today’s competitive market and the fragility of the moments experienced in 2020 was the stimulus to return to being here again, to return to action. Flexibility is the watchword today, along with research. And Iluna has managed to go further: starting from the ingredients at the base of the materials, last year launched a collection with natural dyes made with GOTS certified plant-based dyes, up to proposing magnificent prints with extraordinary effects for this edition of the Milanese fair.

The three dimensions of sustainability, design and innovation are thus finally linked thanks to valuable partnerships with expert and excellent reference companies that have allowed these new developments and these unique results thanks to advanced technologies designed specifically for Iluna, which is today the only company to offer ingredients, natural colors and prints, all three strictly certified.

Marabu is one of the first ink manufacturers to achieve climate neutrality. All Marabu Business Units will, where possible, make a specific contribution to achieve the 17 United Nations Sustainable Development Goals (SDGs) with PROJECT GREEN and therefore participate in the Green Deal.

"We are safeguarding the future of the next generations and are proud that we have managed to be a climate neutral company from July 2021 with the Tamm and Bietigheim sites. All our products, whether printing inks or creative colours, are climate neutral, too," explains York Boeder, CEO Executive Committee. "Our so-called PROJECT GREEN combines all measures that are taking us on our journey to climate neutrality. Climate protection is a particular concern for us, to which we have made a binding commitment within the scope of an extensive sustainability strategy. In accordance with our Marabu Green Deal, we avoid and reduce emissions wherever possible, e. g. by using green electricity, energy-saving schemes, mobility concepts or environmentally friendly materials. We offset all unavoidable CO2 emissions by supporting internationally certified climate protection projects. We are continually implementing measures to improve our carbon footprint and update them annually to make their success measurable. We have therefore set ourselves the active goal of reducing our CO2 emissions by another 25 % by 2030."

For decades, Marabu has invested in the research and development of safe production processes, environmentally friendly products, and clean technologies with the aim of preserving the natural environment. Marabu has worked with Climate Partner to analyse all the CO2 emissions from the sites in Tamm and Bietigheim and determine its carbon footprint. Including all product-related factors such as raw materials and logistics, Marabu currently generates approx. 18,500 tons of unavoidable CO2 emissions. This value is the positive result of a number of climate-friendly measures pursued by Marabu, such as the early switch to green electricity in 2007.

Marabu's main activities to avoid and reduce CO2 emissions:

• Energy - Switching to green electricity from hydropower
• Mobility - Migration of the company's vehicles to electric and hybrid cars as well as in e-charging stations
• Production - Use of renewable energies and resource-efficient production processes
• Raw materials - Replacing critical substances with environmentally friendly alternatives for new and existing products
• Transporting - Climate-neutral freight carriers and lower-emission transport methods like shipping or road transport replace air freight wherever possible
• Product technology - Modern, low-emission products

Schmitz Textiles wird umfassend restrukturiert. Eine Liquidation ist abgewendet – 106 Arbeitsplätze sind gerettet. Darauf haben sich der Betriebsrat und die Geschäftsführung beim Emsdettener Textilhersteller geeinigt. Die angestrebte Neuausrichtung sieht eine Konzentration auf die Produktion von Outdoor-Geweben vor.

Das Familienunternehmen wird unter demselben Namen und neuer Ausrichtung weitergeführt. Zukünftig konzentriert sich der Textilhersteller auf seine Kernkompetenz: die Herstellung von UV- und wetterbeständigen Polyester-Geweben. Entsprechend liegt der Fokus auf der Produktion von Markisen-, Zelt-, Maritim-, Verdeckstoffen. „Damit stellen wir Schmitz Textiles zukunftssicher auf, da wir in diesem Bereich einer der marktführenden Produzenten sind“, so Dan Schmitz, Geschäftsführer der Holdinggesellschaft Schmitz-Werke GmbH + Co. KG. „Das bedeutet im Klartext aber auch, dass wir uns von den Marken drapilux und mobiltex verabschieden.“

Aus für Indoor-Textilien
Bisher bot der Textilproduzent mit der bekannten Marke drapilux umfassende, intelligente textile Lösungen für den Innenbereich von Objekten an. Angesichts hoher Lohn- und Energiekosten sowie zunehmend strengerer Regularien kämpfte das Familienunternehmen jedoch seit Langem darum, sich am Markt zu behaupten und sich rentabel und zukunftsfähig aufzustellen. Nachdem mehrere Sanierungsversuche in den vergangenen Jahren nicht zum erhofften wirtschaftlichen Erfolg geführt hatten, geriet das Unternehmen 2020 durch die Corona-Pandemie weiter in eine wirtschaftliche Schieflage. „So schade es auch ist, sich von der Sparte Objekttextilien zu verabschieden – es ist im Sinne des Unternehmens und der Perspektive für die Beschäftigten am Standort Emsdetten die richtige Entscheidung“, führt Axel Pelzer, seit Februar 2021 Geschäftsführer bei Schmitz Textiles, aus.

106 Arbeitsplätze gerettet
Weitere Voraussetzung für die Neuausrichtung sind die Reduktion der Belegschaft und Entgeltkürzungen der verbleibenden Mitarbeitenden. Dafür einigten sich Betriebsrat und Geschäftsführung auf einen Sozialplan und einen Interessenausgleich. „Das ist ein hoher Preis für die meisten Beteiligten. Aber nur so konnten wir eine Liquidation abwenden“, sagt Axel Pelzer. Man habe im Vorfeld verschiedene Szenarien geprüft und die erzielte Einigung sei der einzige Weg, eine Zukunft für Schmitz Textiles zu ermöglichen. „Die Einigung ist ein großes Entgegenkommen von beiden Seiten. Dafür möchte ich mich bei beiden Parteien bedanken. Mit der Konzentration haben wir die Chance, das Unternehmen weiterzuführen und bieten 106 Kolleginnen und Kollegen, darunter vier Auszubildenden, eine Perspektive“, ergänzt Dan Schmitz.

Doch die Arbeit, Schmitz Textiles neu aufzustellen, beginne erst jetzt, gibt Dan Schmitz zu bedenken. In den kommenden Wochen wird der Textilhersteller intensiv an der Restrukturierung arbeiten. So werden beispielsweise Kostenparameter grundlegend neugeordnet. Hinzu kommen geplante Umbaumaßnahmen, die Anpassung der Prozesse und Systeme sowie eine Neuordnung der Räumlichkeiten auf dem Betriebsgelände. Gleichzeitig geht es darum, bestehende Kundenverträge zu bedienen und die Produktion aufrecht zu erhalten. „Auch in der Phase des Umbruchs können sich unsere Kunden auf uns verlassen“, resümiert Schmitz.

Outdoor apparel company Patagonia and circular fashion and textile technology group Infinited Fiber Company have signed a multiyear sales agreement for Infinited Fiber Company’s unique, premium-quality regenerated textile fiber Infinna™, which is created out of textile waste. The move marks a major milestone for both companies towards making textile circularity an everyday reality: The deal guarantees Patagonia access to the limited-supply fiber over the coming years and secures future sales income for Infinited Fiber Company as it ramps up production.

Infinna is a unique, virgin-quality regenerated textile fiber with the soft and natural look and feel of cotton. It is created from cotton-rich textile waste that is broken down at the molecular level and reborn as new fibers. Because it’s made of cellulose – a building block of all plants – Infinna is biodegradable and contains no microplastics to clog our seas. Clothes made with it can be recycled again in the same process together with other textile waste.

In April, Infinited Fiber Company announced plans to build a flagship factory in Finland to meet the growing demand for Infinna from global fashion brands. It is currently supplying customers from its R&D and pilot facilities in Espoo and Valkeakoski, Finland. The planned flagship factory will have an annual production capacity of 30,000 metric tons, which is enough fiber for roughly 100 million T-shirts made with 100% Infinna. Infinited Fiber Company expects to have sold the new factory’s entire output for several years during 2021.

More than 92 million metric tons of textile waste is produced globally every year and most of this ends up in landfills or incinerators. At the same time, textile fiber demand is increasing, with Textile Exchange estimating the global textile fiber market to grow 30% to 146 million metric tons by 2030 from 111 million metric tons in 2019. Infinited Fiber Company’s fiber regeneration technology, which uses cellulose-rich waste streams as its raw material, offers a solution both to stop waste from being wasted and to reduce the burden of the textile industry on the planet’s limited natural resources.