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.

Denim manufacturers employing Monforts technologies showcased their latest activities, including sustainable fabric manufacturing, new advances in fibres, dyes and chemicals, as well as process and supply improvements and recycling options, at Première Vision’s Digital Denim Week, held from July 5-9.

The users of Monforts equipment included AGI Denim (Pakistan), Azgard 9 (Pakistan), Berto (Italy), Bossa (Turkey), DNM (Turkey), Kilim (Turkey) and Orta (Turkey).

The new Naveena Denim Mills (Pakistan) Holistic collection, for example, employs a suite of sustainable materials such as organic cotton and post-consumer and post-industrial waste cotton that has been shredded and recycled at its in-house unit in Pakistan.

Supply chain transparency is also becoming increasingly important, and Turkey’s Bossa is now sharing information on its dyes, energy sources and recycled content use with its customers. For organic cotton in particular, Bossa provides QR codes with which brands can identify the names of individual farms and their locations, as well as details such as the origins of specific seeds and the use of irrigation by growers.

Turkey’s Orta’s new Denim Route – inspired by the historical Silk Road for trade between the East and West – is an interactive supplier map detailing the regions from which it sources cotton, dyestuff, chemicals and various fibres to complement its other transparency initiatives.

Meanwhile, a living and breathing piece of clothing that absorbs carbon dioxide while simultaneously producing oxygen was introduced at Digital Denim Week 2021 by Azgard 9 (Pakistan) .

• Order intake of CHF 975.3 million (first half of 2020: CHF 250.7 million).
• Sales of CHF 400.5 million (first half of 2020: CHF 254.9 million).
• EBIT of CHF 9.0 million and net profit of CHF 5.3 million

The first half of 2021 has been characterized by a strong market recovery in combination with a regional shift in demand for new machinery and systems. Rieter anticipates a normalization of the demand for new systems in the coming months. The company assumes that spinning mills will continue to work at high-capacity levels.

For the full year, Rieter expects sales to be above CHF 900 million.

The realization of sales from the order backlog continues to be associated with risks in light of bottlenecks in material deliveries and freight capacities as well as the ongoing pandemic in key markets for Rieter.

In recent years, Rieter has implemented its strategy based on the cornerstones of innovation leadership, strengthening the components, spare parts and services businesses, and adjusting cost structures.

Crisis management in the pandemic year of 2020 was aimed at protecting employees, fulfilling customer commitments, ensuring liquidity, and also strengthening the market position for the time after the pandemic as well as retaining the ability to benefit from the incipient market recovery.

The focus for 2021 remains on the implementation of this strategy. The measures for crisis management relating to the protection of employees and fulfilling customer commitments are still in effect in countries that continue to be affected by the pandemic.

The Rieter Board of Directors has approved the implementation of the CAMPUS project. The Rieter CAMPUS comprises a customer and technology center as well as an administration building at the Winterthur location. It will make an important contribution to the implementation of the innovation strategy and to the enhancement of Rieter’s technology leadership position.

• Organic cotton project with thriving prospects

Dibella is participating in a joint project to promote organic cotton cultivation in India. The project aims to protect organic cultivation through targeted training measures and by paying premiums to small farmers, to support the conversion from conventional to organic cotton, to increase crop yields and at the same time to achieve better fibre quality.

The demand for organically grown organic cotton is growing rapidly, but crop yields are lagging well behind global demand. The Alliance for Sustainable Textiles (Berlin), initiated by Development Minister Dr. Gerd Müller, therefore wants to increase organic cotton volumes for its member companies with practical solutions. In cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), it is now promoting a forward-looking project for which Dibella provided the impetus.

"In India, it is mainly micro-farms and village cooperatives that are active in organic cotton cultivation. Conversion of additional land and sustainable management could increase yields and fibre quality of organic cotton. The Chetna Organic initiative, with which we have been working successfully for many years, advises the farmers in these processes. It supports the farmers and village communities with targeted education, training and practical assistance in organic farming, thus preparing the ground for better income and living conditions for the families," says Ralf Hellmann, Managing Director of Dibella.

Several alliance partners - Dibella, Fairtrade Germany, GIZ, Organic Cotton Accelerator (OCA) and Tchibo - have taken the exemplary initiative as an opportunity to promote the cultivation and expansion of organic cotton in India. In cooperation with Chetna Organic, they focus on supporting Indian women's cooperatives, women farmers and families in the production of organic cotton as part of the "Organic Cotton Pilot Project". Tchibo and Fairtrade subsidise micro-farms during the conversion phase of the fields (the fibres are only recognised as organic cotton four years after conversion) and contribute to the provision of GMO-free seeds, which have become a scarce commodity in India. Together with Dibella, they finance training courses that teach the optimal use of natural rainfall as well as efficient, ecological cultivation methods, which subsequently lead to improved fibre quality. In addition, they commit to purchasing Fairtrade organic cotton for many years.

Ralf Hellmann: "The pilot project enables us to expand our Dibella Good Textiles collection because it guarantees us long-term access to fair-trade organic cotton. At the same time, it improves the living conditions of the small-scale farmers and their families. We therefore hope that "Organic Cotton" will also set a precedent in other cotton growing regions and bring organic farming forward in India."

• New high-capacity line enables diversification to meet growing demand

Avgol, a global leader in the manufacture of high performance non-woven fabric solutions, has announced it is investing in a new high-speed, high-capacity flexible multiple beam production line at its facility in Uzlovaya, Russia.

“The addition of this new line enables us to have greater production capacity for growing regional markets and support the release of new Avgol technologies,” said Tommi Bjornman, CEO of Avgol.
“Serving the growing baby diaper, adult incontinence and feminine hygiene markets along with satisfying sustained demand for meltblown filtration and medical materials, this investment enables Avgol to deliver an improved degree of service across the entire area while consolidating and strengthening our existing position,” he said.

Avgol, an Indorama Ventures Limited company, leads the global hygiene market with the most comprehensive range of ultra-lightweight spun-melt nonwoven fabrics. This new line at the company’s Uzlovaya facility, in the Tula Oblast region of Russia, will see Avgol investing in new Reicofil 5 (RF5) technology. The third line for this location will include biocomponent and corresponding high-loft capabilities thus producing materials for applications that meet the needs of upper tier products for Hygiene customers.

As part of the investment, Avgol is including new capacity for meltblown production with a dedicated line, ensuring a continuous supply of this critical material for the region. One other aspect of the investment, and a new inhouse capability for Avgol, includes the addition of cutting-edge lamination capabilities. These capabilities will allow Avgol to offer enhanced performance products into the existing markets the company serves, as well as allowing the company to explore new opportunities in other markets. “The RF5 line, meltblown line and lamination capabilities will provide us a powerful set of platforms as a base from which to provide high-value products for our customers,” said Mr. Bjornman.  “It will enable us to further diversify the Avgol innovation portfolio while remaining true to our roots.”

Mr. Bjornman further commented that the investment will also significantly support further sustainable product development in Avgol, under its innovative FIT™ (Forward Innovative Thinking) strategy. “Avgol is committed to the future of nonwoven fabrics with a particular focus on bringing polyolefins forward as viable resins in single use articles,” he said. “We are excited to bring new assets, new capabilities, and new technologies that will challenge customer expectations of the nonwoven fabric industry.” This investment will move the Russian production facility to the second largest site for Avgol (the largest facility remains the Mocksville site in North Carolina, USA).

Reorganization follows record quarter and additional investment as eCommerce continues to thrive

Fresh Relevance, the versatile personalization and decision engine, today announced the launch of a new customer department to support a growing customer base of more than 500 websites, including major brands in the UK, Nordics and US. The launch follows a record quarter and additional investment from Foresight Group to drive the company’s ambitious global growth strategy.

The new customer department brings together Fresh Relevance’s service, support, customer success and account management divisions located in Southampton (UK), London (UK) and Boston (US). The department is led by the newly appointed Vice President Customer, Huriyyah Dhanse.

Dhanse states: “Many organizations have experienced massive eCommerce growth during the pandemic. This has led to increased investment in omnichannel platforms such as Fresh Relevance, as companies look to sustain and gain market share by optimizing how they connect with, convert and retain customers.” Dhanse adds: “Our new customer department aligns the company’s expanding support, services, customer success and account management teams in the UK and US into a single entity, focused on helping brands achieve and exceed their commercial objectives. By bundling all customer-facing roles into one central department, we are able to provide an even more seamless customer experience and align all touchpoints in the customer lifecycle - from onboarding through to day-to-day support and strategic advice.”

Fresh Relevance boasts a 98% customer retention rate, and it is a statistic that company CEO and co-founder, Mike Austin, is proud of and committed to maintaining. “The success of Fresh Relevance is built on the quality and reliability of our platform, a clear vision for the future of online retail, but above all else the way we build long-term partnership with our customers”, states Austin.

These comments are endorsed by a 9.7 score for Quality of Support on G2, the world’s largest tech marketplace, which is accompanied by a raft of positive feedback from customers such as: “The best thing about Fresh hands down is the support, which comes from literally all avenues. The support team are quick, they really take time to explain things and help you to set anything up you need. Account management talk to you like you're the only person in the room, analyze everything you're doing in depth and help you to see what you're missing whether that be tools or strategy. Everybody goes the extra mile and follows up any open issues.”

Austin concludes: “As we scale up our global operations after a record quarter, it is vital that we keep the voice of the customer at the heart of everything we do. This is the primary aim of the new Fresh Relevance Customer Department.”

The second C.L.A.S.S. ICON AWARD expands its vision embracing fashion streetwear with an attitude and bets on DUARTE, an emerging label committed to sustainability that shows a new way of being cool, yet responsible. “The C.L.A.S.S. ICON AWARD is much more than prize, it’s an open workshop with influential professionals that will support DUARTE in reaching the next level and being able to share my vision for responsible fashion”, comments Ana Duarte.

The designer (b.1991) launched her label DUARTE in 2016 just after graduation. Since then, the fresh, colourful and power-propelling brand has conquered both catwalks and cities’ streets with a responsible message. “Sustainability means durability, fair work practices, recycled materials and zero-waste,” is Ana’s mantra. Indeed, the collection is the result of a virtuous balance between production and locally-sourced, recyclable high-quality materials harnessed from factories’ deadstock. DUARTE also means circularity, the garments can be re-used and upcycled to create new collections.

The C.L.A.S.S. ICON AWARD is a project led by C.L.A.S.S. with the special support of IDEE BRAND PLATFORM which assists fashion brands in commercial activity, WHITE Milano, international fair supporting the new generations and independent brands with special projects since its inception and responsible shopping platform Renoon. Together they will all support DUARTE for a full year at 360°, from consultancy to communication.

This year, EFI™ Reggiani celebrates 75 years of heritage, innovation and glamour in the textile world. As part of its anniversary celebration, the textile technology innovator is revealing the imminent launch of three new digital textile printers.

Reggiani Tessile – which was one of the largest fabric manufacturing companies in Italy – created the company to meet its needs in machinery development. Then known as Reggiani Macchine, the company grew tremendously over five decades thanks to continuous product innovation and close customer relationships.

From the creation of its first traditional printer to its latest technological innovations, EFI Reggiani’s tradition and dedication to its products have contributed to the global transformation of the textile market. EFI Reggiani solutions are used in high-quality, highly productive operations in all of the world’s major textile manufacturing centres. New EFI Reggiani innovations also help facilitate the spread and localisation of industrial textile manufacturing closer to end users in new geographic markets.

In the growing industrial, entry-level segment of the market, EFI Reggiani is strengthening its multi-pass offering by introducing two new scanning machines, which will help facilitate customers’ needs to manufacture closer to the end consumer. The pair of scanning printers EFI Reggiani is bringing to market in 2021 will enable new customers to take their first steps in industrial textile digital printing.

On the occasion of the VDMA press conference, André Wissenberg, Head of Marketing, Corporate Communications and Public Affairs at Oerlikon Polymer Processing Solutions Division, presented the company's concept for ITMA Asia with the claim: Clean Technology. Smart Factory.

Due to the Corona pandemic, Oerlikon has decided to concentrate with their Chinese sales and service teams on guests primarily from China and greater Asia. However, some experts from Germany, who are working in China at our locations anyway, will be live on site at the booth. Other experts from Germany, India and US will be available online for the entire 5 days of the trade fair and will simply be connected by video conference to the discussion with the visitors on site if there is a need for.

At ITMA Asia 2021, Oerlikon will present the next generation of an automatic texturing solution with up to 25 % energy saving and up to 30 % higher production speed, easy maintenance and best yarn quality. The core of this machine, the socalled EvoCooler, will be shown as an exhibit in combination with digital solutions like AIM4DTY. In the field of high-precision flow control solutions components, the two new gear metering pumps developments for the production of aramid and spandex will be presented as well.

Combining expertise for more sustainable fashion
Ever wonder how much water was used to make your favorite cotton T-shirt? About 2,700 liters, or roughly three years of drinking water. What first comes to mind is probably the water that was essential to growing the cotton crop. Surprisingly, cotton is a drought-tolerant plant, and often less recognized is the strain that can be put on water resources to dye cotton textiles.

Progress is being made across the industry to lessen the strain on our precious water resources. Over the past several years, Dow collaborated with Cotton Incorporated to research and validate their product, ECOFAST™ Pure Sustainable Textile Treatment, that can help drastically reduce water and chemical use during the dyeing process. Major fashion brands are integrating it into their supply chain to dye more sustainably, without sacrificing color or quality.

Problem
Cotton dyeing is very resource-intensive and puts strain on local waterways. A large amount of water is used in the dyeing process – up to 5 trillion liters a year, or nearly enough to supply all of humanity with drinking water. Significant amounts of chemicals and dye are needed to get the desired colors consumers expect too. This is part of the reason textile mills account for 20% of industrial water pollution globally. Wastewater from the dyeing process can be polluting and require costly treatment and these challenges are found in regions that already face water scarcity.

Solution
Reforming processes in an industry as established as textiles is no easy feat. Collaboration across the sector is needed to bring about sustainable change. With that in mind, Cotton Incorporated approached Dow. They wanted help scaling a cotton technology to support more sustainable textile dyeing.Leveraging Cotton Incorporated’s industry expertise and Dow’s material science knowledge, they worked together to understand and validate the benefits of our patented ECOFAST™ Pure Sustainable Textile Treatment.

How can colors be more responsible?  
ECOFAST™ Pure is a pretreatment applied before the dyeing process to produce cationic cotton. This means the charge of cotton is permanently changed from negative to positive, so it acts like a magnet to attract negatively charged dye to the material. How does that benefit the textile mill? It significantly decreases the amount of water, chemicals, dye and energy needed to color cotton. A third party reviewed and validated life cycle assessment, available by request, helped further prove the benefits.