From the Sector

The 9th edition of Bangladesh Denim Expo has been successfully completed at International Convention City Bashundhara, Dhaka with the aim of highlighting the importance to develop business relationships for promoting best working practices. It showcased the strength and capacity in denim manufacturing of Bangladesh.

The theme of 2-days expo held on 7th & 8th November set ‘Simplicity’ to display latest trends of denim products to the global brands and retailers. Over 5540 visitors and buyers from 1018 companies&55countries from around the world joined the expo.

The theme of this edition ‘Simplicity’ is aimed at defining a much simpler, much easier definition to understand sustainability and ecology in denim. The Founder & CEO of Bangladesh Denim Expo said that “The underlying concept of the Bangladesh Denim Expo is to fulfill the need of the international denim community, offering the opportunity to make new contacts with potential buyers, discovering new products and to gain a comprehensive overview of the latest developments available from the Bangladesh Denim Industry”.

A total of 63 exhibitors from 12 countries with Bangladesh displayed their products in the 2-day show held on 7th and 8th November 2018. As Simplicity is the core of this edition of the expo and its series of seminars also let the visitors learn about the process of the Simplicity in denim manufacturing. A total of five seminars and two panel discussions were organized in the expo where international and national experts shared their opinions. The seminars highlighted the need for ‘Simplicity’ within the entire denim supply chain.

Trend Zone
A special event ‘Trend Zone’ area, the unique space dedicated to showcase the latest denim trends and innovative products, has been expanded in this edition where visitors have been able to gain insights on denim fabrics, styling and finishing available in Bangladesh, together with an offer of the most relevant denim publication.

TRSA recently held its 105th Annual Conference & Exchange from Oct. 16-18 at The Meritage Resort & Spa in Napa, CA. Nearly 250 linen, uniform and facility services executives and guests gained insights from presentations on technology and family business, plus thought-provoking panel discussions and break-out sessions. They also participated in social events and in the recognition of industry leaders at the Annual Industry Awards Dinner.

Attendees raved about the program, which drew a net promoter score of 74 (anything above 50 is considered excellent). “TRSA's Annual Conference is an excellent opportunity to catch up with old friends, make new connections in the industry, celebrate those who have contributed to our industry and learn about new best practices,” said Jim Buik, president of the Roscoe Co., Chicago. Gerard van de Donk, managing director of ABS Laundry Business Solutions/LSI Inc., added that the conference offered attendees a prime opportunity for networking. “Every time it is valuable to meet and talk with the executives in our industry,” he said. “That is helping us to define our road map toward creating history together.”

The conference began with a keynote address by Vivek Wadhwa, a technology expert and columnist for The Washington Post and Bloomberg BusinessWeek. Wadhwa’s speech looked at technological innovations. Specifically, he examined how those advances are disrupting industries today and how they will continue to do going forward. From the outset, Wadhwa promised a stirring glimpse of what’s to come. “I’m going to take you on a tour of the future,” he said. “I’m going to tell you why this is the most amazing and scary time in human history.” He proceeded to do just that, elaborating on a range of topics from medical/genetic engineering breakthroughs to progress in robotics, water treatment, nanotechnology, energy and more. For example, he noted that the cost of solar energy is dropping exponentially. Within five years, he predicted that the costs for both solar technology and battery storage units will drop by 50% or more.

Koch Membrane Systems (KMS), a global leader in the development and manufacture of membrane-based filtration technologies, announces the commissioning of a PURON® PLUS packaged MBR system in Saskatoon, a city within the province of Saskatchewan, Canada.

The PURON® PLUS system provides a compact and turnkey wastewater treatment solution that is fully automated and provides consistent high-quality effluent for safe discharge or reuse.
 
Due to Canada’s challenging climate and dispersed populations outside of city areas, simple and reliable decentralized treatment systems are often preferred to treat municipal wastewater streams. As a differentiated membrane and system provider, KMS has been selected for this project due to their ability to provide a comprehensive solution with market leading technology.
 
For this project, KMS partnered with Proteus Water Inc., a Canadian company focused on providing integrated wastewater treatment solutions for small communities.
 
“We decided to go with KMS modules due to their reliable, compact and efficient MBR solutions,” said Jason Tratch, president and CEO of Proteus Water. “Compact MBR systems are the only answer for the small municipalities in Canada, meeting the financial expectations as well as the technical challenges. The PURON® PLUS system featuring PULSION MBR membranes is here with a very promising solution due to its increased efficiency and its decreased footprint.”
 
Capable of treating an average design flow of approximately 100,000 gpd (375 m3/d) of municipal wastewater, the PURON® PLUS P-100 system selected for this project features KMS’ latest innovative and patented PULSION® MBR technology. The benefits of PULSION® MBR offer best in class reliability and productivity with the lowest energy consumption.
 
“The efficiency and the reliability of MBR systems has been proven in thousands of places all over the world and it will be the best applicable solution for the Canadian market,” said Jack Noble, general manager Water and Wastewater (EMEA) of Koch Membrane Systems.

• HUB 1922, the fashion division of the RUDOLF GROUP, takes the stage at the Kingpins Show in Amsterdam and presents new technologies that make it possible to move away from environmentally questionable industrial practices.
• HUB 1922 also announces the opening of the new company building in an ancient textile factory near Milan.

Amsterdam/Geretsried/Milan. It was only six months ago that the RUDOLF GROUP, with its fashion Division named HUB 1922, began its journey through the fascinating world of garment finishing. Since then, the team has made significant progress and has moved from being a newcomer to the business to a solid and reliable reality. “HUB 1922 introduces the Rudolf Group to design thinking,” says Alberto De Conti, Head of Fashion Division at Rudolf Group. “And when you break perceived restrictions and paradigms within a strongly science-driven organization, only sky is the limit.”

For an entire semester, the organisation remained focused on one, single goal without getting distracted from it: to become the partner of choice for environmentally conscious advancements in garment processing that are rooted in real experience and science.

Emphasis was put on listening attentively to the market and on engineering solutions proactively, without being prompted.
When it comes to Denim, two separate yet correlated calls for action were heard:
1. the need for a serious departure from established industrial practices that are environmentally questionable
2. the opportunity to change the current rules and stir toward enhanced product quality.

Departure from the environmentally questionable

• HypNO: The next generation of bleach

Many attempts to technical alternatives to local and total denim bleaching have been launched in the market, over the past five years, by a number of competing players. Originality and innovation are at the base of HypNO technical uniqueness that can be injected into traditional denim processing, but that can also be used to create whole new processes and aesthetics.
Birth child of relentless dedication to science, HypNO is the latest alternative to the traditional denim bleaching agents currently under the spotlight because of their alleged safety issues. HypNO is the next generation of bleach.

- HypNO is based on the application of a whole new family of RUCORIT compounds, which are halogene-free and heavy metal-free
- HypNO can replace both potassium permanganate and sodium hypochlorite with one more eco-friendly solution
- HypNO is free from unpleasant smells; it is production friendly and suitable for both spray and bath applications
- HypNO does not require neutralisation with agents such as sodium metabisulphite or peroxides, hence reducing the need for chemicals significantly
- HypNO is GOTS approved. Bluesign and ZDHC Chemical Gateway certifications are intended
- HypNO further helps in the elimination of pumice stones
- HypNO is highly efficient and has been engineered to be cost competitive compared to other existing bleaching solutions

Toward enhanced product quality

• SoSoft, RawLong, DuraBlue

Durability over time still builds a brands’ reputation for quality. The notion of “durability” has changed over the years and has moved from sturdy workwear to the product's ability to retain its characteristics and structural properties.

“It goes against the whole denim philosophy, but, jeans are increasingly bought for what they look like at the time of purchase and are expected to evolve as little as possible. It is what it is; you can’t argue with consumers” says De Conti.

SoSoft, RawLong, DuraBlue, the three new technical concepts launched at Kingpins Amsterdam by the RUDOLF GROUP all sit under the umbrella wings of enhanced quality and specifically address long-lasting softness, preservation of original look and depth of blue.

• SoSoft

All appreciate the softness and suppleness of used/worn denim and the comfort benefit it delivers. It is a generic denim truth, and it is even stronger when it can extend over time. SoSsoft is about softeners carefully engineered for an enduring emotion, one that lives along favourite clothes.

Tried and tested to over 15 home washes, these marvels of chemical engineering allow consumers to toss domestic fabric softeners to the benefit of environmental sustainability.

• RawLong

Denim lovers want raw jeans to fade with time, soften and transform into what feels like an extension of their body. More often, people just want to prolong the look they chose. In both cases, home washing is a headache.

Years of testing have identified RawLong innovative, highly durable and natural solution that keep wearers fresh and at ease in their jeans allowing for long-wearing without washing. Moreover, less home washing means much less impact on the environment.

• DuraBlue

The role of designers is to come up with the bluest of blue jeans in a spectrum of fantastic new blue finishes and supporting textures. The role of DuraBlue is to ensure a continuously updated collection of technical solutions that keep that rich, deep, dark blueness of jeans for much longer while limiting the quality issues that come with denim rubbing. In other words, light underwear, snowy shoes, and white sofas no longer live in fear.

The launch of HUB 1922

• Busto Arsizio, Italy.

On a discreet street of Busto Arsizio, a village at the North of Milan is a red-brick building which in the 1800’s was the house of a textile mill. This 150-year-old structure is where the RUDOLF GROUP, the 100-year-old leader of textile, functional, responsible chemistry, is about to open its Fashion Division. Or, better, it’s HUB 1922.

HUB 1922 is committed to research and develop innovation within garment processing for the privately held mother company. HUB 1922, whose doors are expected to open during fourth quarter of 2018, will foster collaborative efforts with international fashion brands and retailers, will provide product innovation ideas at the crossroad of fashion and utilitarian functionality and will introduce elements of unorthodox diversity rooted in deep scientific knowledge, true environmental responsibility, technical innovation and creativity. “At a time when science plays such a powerful role in the life of society, it is incumbent on fashion to be dealing with scientific research. HUB 1922 facilitates that reunion” concludes De Conti.

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.

Peter D. Dornier, member of the Executive Board of the VDMA Textile Machinery Federation and Chairman of the Walter Reiners Foundation for the Promotion of Young Engineers, honours five young talents. Numerous entrepreneurs and managers from the German textile machinery industry took part in the award ceremony at the Digital Capability Center (DCC) in Aachen, Germany.

The prizewinner in the dissertation category, Dr.- Ing. Benjamin Weise, comes from the Institute of Textile Technology at RWTH Aachen University (ITA). He has dealt with a complex production process for the manufacture of modified multifilament yarns, which offers new perspectives for the development and manufacture of textile charge carriers.

M.Sc. Susanne Fischer, winner of the Master's thesis category, has systematically and comprehensively solved the challenging task of integrating motion sensors into a finger glove at Reutlingen University.
The 2018 creativity award winners are team Mr. Jan Merlin Abram and Mr. Alon Tal from ITA Aachen as well as Mr. Eric Otto from the Institute for Textile Machinery and High-Performance Textile Materials Technology (ITM) in Dresden. The students Abram and Tal have developed a guideline for the design of hybrid morphing textiles. In addition to the classic functions in conventional and, in particular, composite applications, locally defined, functionally effective joint, torsion, expansion and compression mechanisms can be integrated into the textile.

The prizewinner Otto is awarded for a concept study for the development of a circular knitting machine with a variable diameter needle cylinder, which can lead to further flexibility in the circular knitting process.

• Huntsman Textile effects redefines dyeing of polyester including microfiber and blends with UNIVADINE® E3-3D diffusion accelerant
• Eco-friendly diffusion accelerant provides reproducible, high-speed polyester dyeing

Singapore – Huntsman Textile Effects introduces UNIVADINE® E3-3D next-generation diffusion accelerant to help mills achieve high-performance dyeing of polyester, microfibers and blends in an environment-friendly way that complies with current and anticipated industry sustainability standards.

The demand for polyester and man-made fibers is booming as sports and athleisure apparel markets expand rapidly around the world. At the same time, big-name brands that set trends in the sector continue to increase focus on sustainability and performance. As such, this is putting pressure on mills since the current industry standard involves chemically active diffusion accelerants that contain unwanted chemicals and require additional leveling agents and anti-foaming products that may be hazardous to people and the environment.

Developed by Huntsman Textile Effects specifically to meet these challenges, UNIVADINE® E3-3D diffusion accelerant is low-odor, free of benzyl benzoate and other hazardous substances. Part of Huntsman’s range of innovative dyEvolution™ dyeing auxiliaries, it uses Huntsman’s Active Diffusion Technology to enable high-speed dyeing with best-in-class leveling, retarding and migration properties.

“UNIVADINE® E3-3D diffusion accelerant delivers across three key dimensions – diffusion, leveling and migration – for exceptional performance and environmental and economic sustainability. Its environmental credentials offer mills greater processing flexibility and an optimum price-performance ratio,” said Kerim Oner, Global Marketing Manager for Dyeing Auxiliaries at Huntsman Textile Effects. “We expect this latest offering to change the way that the industry dyes polyester and blends while meeting stringent environmental standards.”

UNIVADINE® E3-3D diffusion accelerant has a high affinity to polyester, causing the fiber to swell and increasing the diffusion of the disperse dye, even at lower temperatures. Multiple leveling mechanisms then slow down the exhaustion rate to ensure safe, defect-free dyeing. Finally, as the dye bath heats up, the product’s strong support for disperse dye migration ensures the dye molecules are evenly absorbed.

As a result of this cutting-edge diffusion technology, UNIVADINE® E3-3D diffusion accelerant can be used to successfully dye polyester fibers in tightly wound or high-density yarn/beam dyeing and is suitable for jet applications without the need for anti-foaming products. Reducing exposure to high heat, its Active Diffusion Technology minimizes the potential to damage the elastane in polyester-elastane blends and provides for on-tone dyeing of microfibers. The superior migration support of UNIVADINE® E3-3D diffusion accelerant also increases reproducibility, allowing mills to dispense with additional leveling agents. Polyester, microfibers and blends treated with UNIVADINE® E3-3D diffusion accelerant comply with the requirements of bluesign®, in addition to being suitable for Standard 100 by OEKO-TEX® and an approved input dyeing auxiliary chemical for GOTS (Global Organic Textile Standard) certified textile products*.

The Aachen Center for Integrative Lightweight Production (AZL) of RWTH Aachen University is installing a new ENGEL injection molding system in its technical center. Engel Deutschland GmbH – in cooperation with the ENGEL Centre for Lightweight Composite Technologies in Austria – will install the 2-component injection molding system with turning plate and 17,000 kN clamping force in 2019. This machine setup is the basis for further developments of efficient inline-combination technologies using different kinds of polymer performance materials.

The ENGEL injection molding system will enable innovative combinations of already established fiber-reinforced plastics (FRP) processes and the development of new individual processes. The focus is on increasing resource efficiency in lightweight production. With the new equipment, new research and development initiatives can explore the more efficient use of materials, which are eventually the key to the mass production of lightweight components. The research will address multi-material systems, continuous processes, process chains as well as self-optimizing processes.

Dr.-Ing. Michael Emonts, Managing Director of the Aachen Center for Integrative Lightweight Production (AZL) is looking forward to realizing new innovative lightweight production process with the new injection molding system: “This new injection molding system offers us as specialists for lightweight production technology in cooperation with the injection molding experts of the Institute of Plastics Processing – the IKV – the opportunity to establish hybrid processes for industrial lightweight applications. The system will expand our existing machinery in the AZL Technical Center and will be available as an important platform for lightweight production research at RWTH Aachen University.”

Being a Partner of the AZL, ENGEL has already been working closely with the AZL for many years as a Partner Company of the AZL Partner Network. Dr. Stefan Engleder, CEO of the ENGEL Group, emphasizes the importance of close collaboration with technical universities and especially with the AZL: “The AZL provides great conditions for industry-related research activities in the field of lightweight composites as it is characterized by a strong interdisciplinary approach. It benefits from the great infrastructure and the collaboration with well-known institutes of the RTWH Aachen University. ENGEL is looking forward to working together with the AZL on developing efficient lightweight composite mass production processes.”

In addition to the numerous composite and lightweight equipment at the RWTH Aachen Campus, the AZL Technical Center comprises large-scale equipment for the development of processes for lightweight production, such as a composite press from Schuler Pressen GmbH with 18,000 kN clamping force.

Cinte Techtextil China opens its doors next week, with around 480 exhibitors from 22 countries and regions preparing for another successful showcase of the world’s leading textile innovations. Leading international and domestic brands will feature in halls N1 – N3 at Shanghai New International Expo Centre from 4 – 6 September, making Cinte Techtextil the ideal place to make connections and gain insight into Chinese and Asian market trends.

The technical textile industry in the Asia region, and China in particular, has been growing steadily and is predicted to continue doing so. China’s total output of technical textiles and nonwoven products is estimated to account for 30% of global production by 2020, and double that of 2013. This high potential for growth, achieved through investments worth billions of dollars, has drawn attention from European exhibitors, who are set to travel to the region for Cinte Techtextil.

This year’s European Zone will feature around 30 exhibitors from countries including Austria, France, the Netherlands, Sweden, Switzerland and the UK, while further exhibitors can be found in national pavilions from Belgium, Germany and Italy. In addition to this, the Czech Republic will present its debut pavilion, showcasing exhibitors with solutions for technical yarn, fabric processing and nonwoven fabrics.

In addition to this, exhibitors from 12 more countries and regions will present their latest innovations to the market. These include domestic and international exhibitors from China, Hong Kong, India, Indonesia, Israel, Japan, Korea, Saudi Arabia, Taiwan, Thailand, Turkey and the US.

Belt and Road: a success story for Buildtech
Following higher regulations and quality standards that aim to exceed Western levels, demand is high in China for production machinery. What’s more, with the national nonwovens market displaying particularly fast growth, Cinte Techtextil has attracted some of the world’s leading nonwoven and weaving machinery brands.

The fair will showcase leading global exhibitors across 12 application areas. Two areas to watch out for include Buildtech and Mobiltech, which are both performing well in Asia and specifically in China. The Belt and Road initiative brings Buildtech a great deal of benefits through China’s enormous investments in global infrastructure. Adding to this, China’s automobile production has been increasing 3% year-on-year, with particularly high growth seen in new-energy vehicles, SUVs and commercial vehicles. China has become the world’s largest auto producer, and this has been boosting progress in the Mobiltech category.

Cinte Techtextil fringe programme a hub of industry insight
A comprehensive fringe programme will keep Cinte Techtextil fairgoers up to date with industry news, with standout events including the 7th China International Nonwovens Conference. Focusing on the global nonwovens industry, topic highlights include the latest innovations in China’s nonwovens industry, an insight into the North American nonwovens market, future trends in the global hygiene product market, and more. The conference will also discuss innovations and developments in filter materials and the wipe industry.

The first day of the fringe programme will see a panel discussion in hall N1, moderated by the Taiwan Technical Textiles Association (TTTA), with confirmed panellists including DuPont, IBENA Textilwerke and SGS-CSTC Standards Technical Services. The panel will focus on current trends, developments and standards in the protective textile industry.

Other fringe programme events will include seminars and product presentations led by industry leaders on the latest global technologies and market trends, and an Innovation Showcase Area in a variety of application categories. 

• Decline in revenue due to volatile standard viscose prices and currencies
• Prices for key raw materials still high
• New production line in Heiligenkreuz in start-up phase
• Backward integration into dissolving wood pulp to be strengthened via joint venture in Brazil

Lenzing – The Lenzing Group generated solid results in a challenging market environment in the first half of 2018. The decline in revenue and earnings compared with the first half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects. The Lenzing Group’s strategic orientation with a focus on specialty fibers had a positive impact in this environment and is increasingly bearing fruit. The corporate strategy sCore TEN is being implemented with great discipline in order to expand the company’s offering of specialty fibers and even more extensively support customers and business partners.

Revenue declined by 6.4 percent compared with the first half of the previous year to EUR 1,075.4 mn. This decrease is primarily attributable to less favorable currency exchange rates. EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 28.1 percent to EUR 194.8 mn, especially due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018. EBIT (earnings before interest and tax) declined by 37 percent to EUR 128.7 mn, leading to a lower EBIT margin of 12 percent (H1 2017: 17.8 percent). The net profit for the period dropped by 39.3 percent from EUR 150.3 mn in the previous year to EUR 91.3 mn. Earnings per share equaled EUR 3.44 (H1 2017: EUR 5.55).

“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

Largest dissolving wood pulp line worldwide

In June, the Lenzing Group and Duratex, the largest producer of industrialized wood panels of the southern hemisphere, announced that they had agreed on the terms and conditions to form a joint venture to investigate building the largest dissolving wood pulp plant (single line concept) in the state of Minas Gerais, (Brazil). This decision supports the self-supply with dissolving wood pulp and the growth in specialty fibers, defined in Lenzing’s sCore TEN strategy. The joint venture will investigate the construction of a 450,000 t dissolving wood pulp plant, which is expected to become the largest and most competitive single line dissolving wood pulp plant in the world. The final investment decision to build the dissolving wood pulp plant is subject to the outcome of the basic engineering studies and the approval by the respective supervisory boards.

Even stronger focus on sustainable products

As a pioneer in sustainable fiber solutions, the Lenzing Group is committed to higher standards in the textile and nonwoven sectors. More than EUR 100 mn will be invested in sustainable manufacturing technologies and production facilities by 2022 in order to realize this vision. In line with the Group’s specialty strategy, another two milestones were set in the first half of 2018: Lenzing announced an investment of up to EUR 30 mn in another pilot line for the production of TENCEL™ Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of LENZING™ ECOVERO™ branded viscose fibers at its Chinese site. Both decisions contribute to better meeting the strong demand for environmentally compatible products.

Expansion of capacities

CAPEX (investments in intangible assets and property, plant and equipment) rose by 60.8 percent year-on-year to EUR 117.2 mn in the first half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz (Austria) and Mobile, Alabama (USA) and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi (Thailand).

New brand identity

With the new positioning of its master brand and its product brands, the Lenzing Group started a new phase of branding and brand communication in the first half of 2018. Lenzing decided to carry out a new brand strategy in order to sharpen its company and product profile as a sustainable innovation leader for customers and partners along the value chain as well as for consumers. The most important pillar of this new brand strategy is a brand architecture with a focus on fewer brands and a strong message to consumers. With the TENCEL™ brand as an umbrella brand for all specialty products in the textile segment and the VEOCEL™ brand as the umbrella brand for all specialty fibers in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcases its strengths in a targeted manner.

Outlook

The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export-oriented companies in the Eurozone are faced with additional challenges from the currency environment.

Developments on the fiber markets should remain positive, but with continuing volatility. The rising demand for cotton should support prices despite the increase in production. Polyester fiber prices have stabilized after the increase in previous years.

The wood-based cellulosic fiber segment, which is relevant for Lenzing, should see further strong demand. After years of moderate capacity expansion in the viscose sector, significant additional volumes will enter the market in 2018 and 2019. As a result, standard viscose prices will remain under pressure. The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers.

The Lenzing Group still sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. Our specialty fibers are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years.