From the Sector

• Order intake of CHF 524.5 million after nine months
• Order intake for a major project from Egypt booked in October 2019
• Market situation remains challenging
• Real estate sale in Ingolstadt successfully completed
• Outlook 2019

The cumulative order intake recorded by Rieter Group in the first nine months of 2019 of CHF 524.5 million (2018: CHF 749.8 million) was down by 30% compared to the prior-year period. In the third quarter of 2019, order intake was CHF 146.2 million (Q3 2018: CHF 238.0 million).

Order Intake for a Major Project from Egypt Booked
On October 7, 2019, Rieter booked the order intake for the first six projects with Cotton & Textile Industries Holding Company, Cairo (Egypt) of around CHF 165 million. This amount is thus not included in the figures for the third quarter of 2019 and will positively affect the fourth quarter. The sales are anticipated to be realized in the 2020/2021 financial years. The order includes deliveries of compact and ring spinning systems and it is part of a comprehensive modernization program for the Egyptian textile industry.

Market Situation Remains Challenging
The demand for new machinery remained at a low level in the third quarter of 2019. The primary reasons are existing overcapacity in the spinning mills, the trade conflict between the USA and China, as well as political and economic uncertainties in other regions of importance to Rieter. Rieter's market share continues to be at the level of around 30%.

Real Estate Sale in Ingolstadt Successfully Completed
Rieter completed the real estate sale in Ingolstadt (Germany) to GERCHGROUP of Düsseldorf (Germany) on September 13, 2019. Rieter expects a non-recurring profit contribution from this transaction on a net profit level of around EUR 60 million.

Outlook 2019
Rieter estimates significantly lower sales for the year 2019 as a whole compared to 2018, and expects a significant drop in the result from the ongoing business. EBIT and net profit are anticipated to be significantly above the levels of the previous year due to the non-recurring profit contribution from the sale of real estate in Ingolstadt (Germany). The cost-cutting measures introduced have been implemented to a great extent.

A selected supply chain combined with big data model to shape a controlled eco-innovative change, for Bangladesh and the entire sector. The Kingpins Show Amsterdam (23-24 October 2019) is once again the chosen setting for GENESIS:M&J Group to present its highly innovative proposals and latest advancements in the world of garment manufacturing. The strategy behind the new approach of the Group’s leading facility is based on three main pillars: an accurate supply-chain selection, unique sustainable data control with START TO MEASURE™ system improved, and the development of safer work conditions and processes.

Confirming its prestigious partnerships with brands like Diesel, G-Star Raw, Jack & Jones, C&A and Celio, among many others, GENESIS brings on the stage of the world-renowned denim exhibition its vision to drive positive change in the sector. In the ever-changing denim and apparel scenario the company’s strategy aims at leading a forefront approach in major garment manufacturing, relying on high-quality standards and unprecedent technological innovation. The goal is not only to consolidate penetration in European markets, but also to provide an alternative model to fast-fashion standards.

Archroma, a global leader in color and specialty chemicals towards sustainable solutions, today announced that the company is joining the One Young World global movement and sending its first ever delegates to the Annual Summit which will take place in London, UK, from 22 to 25 October 2019.

The annual One Young World Summit convenes 2000+ bright young leaders from 190+ countries, working to accelerate social impact. At the Summit, delegates are counselled by influential political, business and humanitarian leaders such as Justin Trudeau, Paul Polman and Meghan Markle, amongst many other global figures.

The 3 Archroma delegates to the One Young World Summit 2019:

• Jane Zhu: Jane Zhu is a logistic specialist with more than 4 years of experience in customs clearance and transportation of goods.
• Raul Padilla: Raul Padilla is currently a sales manager for textile process chemicals and new markets, at Archroma in the US.
• Till Felippi: Till Felippi is a young digital business specialist with more than 10 years of experience and diverse know-how in communications, online marketing and web development.

New polyethylene and polypropylene-based monomaterial pouch solutions developed in value-chain collaboration

Borealis and Borouge have developed a series of new, monomaterial pouch solutions based on polyethylene (PE) and polypropylene (PP). Designed specifically for recycling, and in collaboration with value-chain partners, these new pouch solutions are suitable for the most demanding consumer packaging applications. In line with the EverMinds™ approach to Thinking Circular, these solutions further expand the range of more sustainable options available to the flexible packaging industry. Several of the pouches will be showcased at the K 2019 in October, including one exemplar containing 35% post-consumer recyclate (PCR).

Fortum, together with the sustainable fibre technology company Spinnova have today introduced the first prototype product born out of their joint development of using wheat straw in the production of highly sustainable textile fibre.

Fortum and Spinnova are showcasing the world’s first clothing made from agricultural waste, namely wheat straw, at the Textile Exchange Sustainability Conference in Vancouver, during 15-17 October. The showpieces include a knitted t-shirt, as well as a jacket and skirt made of a woven fabric on organic cotton warp.

The prototype material is unique also due to its extremely low environmental impact from raw material extraction, processing and manufacture, verified by life-cycle analysis (LCA).

“We are very excited to present this revolutionary textile. Today, wheat straw is mostly discarded or even burned in the fields. As it can now be used in numerous textile applications, this opens up huge possibilities globally. This cooperation is a tangible step towards Fortum’s strategy to build options for significant new businesses that improve resource efficiency and provide smart solutions for a cleaner world. We would like to invite more key industry players to join us in this journey,” says Heli Antila, VP, Biobased solutions at Fortum.

“We are all very proud of this amazing collaborative accomplishment! This was a very fast journey from the first trials to real, appealing fabric materials. This shows that wheat straw-based fibre is well on its way to being a drop-in product of the most sustainable kind,” says Spinnova’s CEO Janne Poranen.

• Comprehensive 3D printing expertise in the automotive, aerospace, consumer goods and medical application sectors
• Hands-on application presentation with a leading RV and trailer manufacturer
• Content-rich Live Talks with industry-leading business partners
• Live demonstration of pigmented plastic filaments with BASF Colors & Effects

BASF 3D Printing Solutions (B3DPS) exhibited for the second time at K 2019 in Düsseldorf, Germany. At the world’s biggest trade show for plastics and rubber industry, B3DPS welcomed visitors from October 16 through 23 at the BASF SE stand C21/D21 in Hall 5 and presented its extensive portfolio of 3D printing materials and service solutions aiming at enabling industrial additive manufacturing at scale. What’s more, the company’s 3D printing experts did offer insights into the latest technological innovations and application developments in the “competencies” section.

Customized 3D printing highly attractive to RV and trailer market
The Concept Caravan at the BASF stand gave visitors hands-on experience of the impressive spectrum of applications offered by B3DPS. Alongside complex samples of printed modular construction elements, over one hundred individual parts have been 3D-printed using advanced photopolymer, filament and powder-based ready-to-print material formulations. The RV and trailer market is exceptionally attractive as it can greatly benefit from unique advantages offered by additive-based manufacturing, namely the high customizability of parts with complex geometries as well as the rapid availability of production parts without incurring tool costs. The very diverse material characteristics of the construction elements meet the production requirements for both vehicle exteriors and interior fittings. In addition, the final coating of manufactured parts plays a decisive role in many application areas, and this is also covered by the comprehensive BASF technology portfolio.

Communicating brand values and product characteristics in an emotional way and staging them in an appropriate manner is becoming increasingly important for brand manufacturers. To connect with the end consumer, they need to have paperboards that enhance the visual and tactile experience. In response to these needs, Sappi is now introducing the next generation of its popular and proven Algro Design portfolio – with an enhanced paperboard version and a change of name.

More and more consumers want exclusive, customised packaging that reflects a brand’s unique selling points and special character. For even more flexibility and design scope, Sappi is expanding its range of premium solid bleached boards to include an additional variety as of 1 October 2019: Algro Design Advanced. This gives customers a choice of four different reverse side surfaces within the popular Algro Design portfolio, which means one more paperboard variety than before. The paperboards differ with regard to the reverse side coating; the top sides are identical and always double coated. As part of the ongoing development of the popular Algro Design paperboard, the term “Nature” is now added. This further underlines the brand’s natural look on the uncoated reverse side and its haptic character. A specification of this kind is in great demand today, as the reverse side of the paperboard is being used more and more frequently as the outward face of a finished box. The product itself and all properties remain the same.

• Borealis’ EverMinds™ ambition moves industry one step closer to plastics circularity thanks to new recycling technology and improved recyclate
• Borealis also announces significant material improvements to existing Purpolen® recyclate materials

Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, announces the introduction of a new plastics recycling technology, Borcycle™. This evolving technology will be used to produce high-quality compounds made of recycled polyolefins (rPO) such as the newly-launched Borcycle™ MF1981SY, an rPO with over 80% recycled content intended for use in visible appliance parts. Borealis also announces a series of significant material improvements to existing recyclates in the established Purpolen™ brand portfolio. These market launches and product improvements are important technology advancements and thus accelerate the transformation to a circular economy of plastics. Borealis and its wholly-owned subsidiary, mtm plastics, will showcase the new Borcycle technology and recyclate innovations at the K 2019 in October.

Borealis is leading the industry by applying its Visioneering Philosophy™ to the development and implementation of novel polyolefins-based solutions that enable plastics reuse, recycling, and recovery, and by designing for circularity. These wide-ranging activities are gathered under the symbolic roof of EverMinds™, the Borealis platform dedicated to promoting a more circular mind-set in the industry. By capitalising on its profound expertise in virgin polyolefins and collaborating with value chain partners, Borealis keeps discovering new opportunities for business growth within the circular economy.

Advancing technology to bring about polyolefin circularity

The new technology, Borcycle, transforms polyolefin-based waste streams into recyclate material such as pellets. As a transformative technology, it complements the existing Borealis virgin polyolefins portfolio with a range of pioneering, circular solutions. It unites state-of-the-art technology with the profound Borealis polymer expertise gained over decades.

As a scalable and modular technology, Borcycle has been developed to meet growing market demand for high-quality recyclate. Leading appliance brand owners, for one, have pledged to increase the amount of recycled plastics in their goods. Yet until recently, producers have not been able to rely on a consistent supply of high-quality recyclate. The Borcycle technology will help address this challenge. Compounds made using the Borcycle technology deliver high performance, add value and offer versatility. Producers and brand owners in a range of industries will profit from the availability of high-quality recyclate that helps them meet environmental and regulatory challenges.

“Advancing technology is crucial if our aim is to implement value-creating solutions in the circular sphere,” claims Maurits van Tol, Borealis Senior Vice President, Innovation, Technology & Circular Economy Solutions. “‘Building tomorrow together’ means innovating, collaborating, focussing on the customer, and above all – taking action. The launch of our new recycling technology Borcycle is tangible proof of our commitment to achieving plastics circularity.”

New and improved recyclate for high-end applications

Borcycle™ MF1981SY is the first of several upcoming launches of rPO solutions made under the umbrella of the Borcycle technology. Borcycle™ MF1981SY will be available to Borealis customers in Europe. The compound is an exciting addition to the rPO portfolio because it is a 10% talc-filled compound that contains over 80% recycled material. It offers an ideal balance between stiffness and impact. The compound is especially suited for use in visible black parts, for example in small appliances.

Like its relatives in the mtm plastics family of recyclate materials, Borcycle™ MF1981SY is a truly sustainable offering. Recyclates from mtm save approximately 30% of CO2 emissions compared to virgin materials.

A number of significant improvements have been made to existing recyclate grades in the Purpolen portfolio.

“Mechanical recycling is presently a most eco-efficient method to implement the principles of the circular economy,” explains Guenter Stephan, Head of Mechanical Recycling, Borealis Circular Economy Solutions. “Borealis and mtm plastics are leveraging their respective areas of expertise to make significant progress in achieving polyolefin circularity by upscaling recycling output and ensuring the reliable supply of high-quality plastics recyclate for European producers, in particular.”

• Important step for further growth with specialty fibers
• Transaction generates negative impact on net profit of approx. EUR 21 mn
• Lenzing Group will hold 100 percent of Lenzing (Nanjing) Fibers Co. Ltd. after closing

Lenzing/Nanjing – The Lenzing Group intends to acquire the remaining 30 percent of its Chinese subsidiary Lenzing (Nanjing) Fibers Co. Ltd. (LNF) from its state-owned joint venture partner NCFC. After closing of the transaction, the Lenzing Group will hold 100 percent of LNF. The underlying structured selling process was initiated by the joint venture partner in a state controlled bidding process and today the Lenzing Group received the Share Purchase Agreement draft. The closing of the transaction documents is expected for the end of October. The acquisition will have a negative impact on net profit of the Lenzing Group of approx. EUR 21 mn for the fiscal year 2018.

The purchase of the shares supports Lenzing’s strategic growth as a producer of specialty fibers from the renewable raw material wood in China and worldwide. It paves the way to setting up further production lines for specialty fibers. Lenzing wants to convert LNF into a specialty fibers hub over time.

A new important partnership marks the path of Itema towards a greener future for the whole denim production chain. Prosperity Textile, one of the main denim producers worldwide, has chosen for its new facility one of the most interesting and sustainable-oriented Itema technologies, iSAVER™ equipped on the Itema R95002denim. Prosperity Textiles is, in fact, one of the early adopters of this new technology chosen for the new plant that the world-famous indigo fabrics producer will open in Vietnam, and that will be exclusively equipped with the latest Itema weaving machine model, demonstrating once again its green, future-oriented approach.

Thanks to its partnership with Itema, Prosperity Textiles makes again a step forward in terms of sustainable innovation, as one of the first denim producers able to successfully turn - even the weaving production - green. A partnership that is planned to be showcased in some of the most important textiles exhibitions worldwide focusing on Asian and denim markets. A path that starts with KingpinsShow, Amsterdam (October 24-25) where the Chinese denim producer will put into the spotlight this brand-new solution aimed at further increasing the eco-driven approach of the company; an important appointment is also in the Itema calendar: the ITMA Asia + CITME 2018 exhibition, Shanghai (October 15-19) where the Italian company showcased the important green step-forward in denim weaving processes and the full range of its innovations.

iSAVER™: the ideal green tool for denim weaving
This new technology, developed by ItemaLab™, the Itema Advanced Innovation Department, isable to completely eliminate the left-hand weft waste, allowing to insert the weft yarns in the fabric without the need of additional yarns. iSAVER™ significantly reduces raw material waste, leading to tangible benefits in terms of machine’s efficiency, cost reduction and energy saving.

Just consider that the weaver will gain a minimum saving of € 2.000 per year per machine, and our planet will gain even more. In fact, for the first time in the weaving industry, a sustainable approach when choosing the weaving equipment is now possible. Thanks to iSAVER™, 1.000 Kg of cotton per machine per year – the 3% of the total raw materials - will be saved, thus avoiding the waste of 20 million liters of water, equivalent to 400.000 showers.

Numbers are clear: the introduction of iSAVER™ clearly sets a new benchmark in terms of sustainability within denim fabric production. Furthermore, the iSAVER™ is one of the key features of the Itema R95002denim, the rapier weaving machine born and designed to weave denim guaranteeing to weavers superior textile quality, outstanding user-friendliness and tangible energy and raw materials saving.

A joint eco-driven path
Itema, understanding very well the importance of saving resources and energy to drive the textile production in the direction of a more conscious manufacturing, focused its attention to develop breakthrough weaving solutions and in 2018 introduced to the market the iSAVER™, a revolutionary device dedicated specifically to denim fabrics able to eliminate the waste selvedge on the left-hand side of the fabric.

This is one of the reasons-why Prosperity Textiles has chosen to adopt this extraordinary technology for its new facility. Today Prosperity Textiles is one of the main denim producers worldwide, counting 1,300 employees and 20 offices worldwide. Moreover, a second state-of-theart denim mill will be inaugurated in Vietnam by the end of 2018.
What makes Prosperity able to stand out on a global scale, is not simply its products high quality but the ability to conciliate flawless denim fabric production with a sustainability-oriented mindset that permeates every stage of their textile supply chain.

Prosperity, indeed, adopted innovative green manufacturing concepts through all stages of the company’s operations, from product development, raw materials procurement and processing, to natural resources and energy utilization including waste management. Prosperity’s denim production is based on the employment of best quality yarns available on the market, while still targeting the most sustainable sources, from BCI to organic, recycled cotton, and from Tencel™ Lyocell to Sustans™, in 2017, more than 20 million yards fabric sales from Prosperity are with sustainable fibers inside.
The introduction of eco-friendly dyeing and finishing practices allows the company to create beautiful indigo shades and performance denims, with less water and energy consumption compared to the traditional systems. Last year, Prosperity produced 20% more fabrics than 2016, yet the water and electricity use and greenhouse gas emission was down by 11.5%, 7.9% and 5.4% respectively.

In this continuous process of improvement and contribution to a greener industry and planet, plays a central role the recent renewal of the historic partnership and strategic alliance with Itema – the leading manufacturer of cutting-edge weaving solutions – which represents the natural evolution of a constant process of research for partners able to support Prosperity Textiles’ growth as a sustainable company.
Up to now, all innovations and efforts done in this regard addressed the traditionally more polluting steps of the denim production. In fact, if the development of green technologies is nowadays spread in many fabric processing stages, such as finishing and dyeing, weaving was not yet capable to provide sustainable solutions to weavers.