From the Sector

• Members of TMAS – the Swedish textile machinery association – have adopted a range of new strategies in response to the Covid-19 pandemic, aimed at assisting manufacturers of textiles and apparel to adjust to a new normal, as Europe and other regions emerge cautiously from lockdown.

“Many European companies have been forced into testing new working methods and looking at what it’s possible to do remotely, and how to exploit automation to the full, in order to become more flexible,” says TMAS Secretary General Therese Premler-Andersson. “Others have been taking risks where they see opportunies and there’s a new sense of solidarity among companies.

“It’s extremely encouraging, for example, that over five hundred European companies from across our supply chain are reported to have responded to the shortages of facemasks and PPE – protective personal equipment – by converting parts of their sites or investing in new equipment.”

New supply chains

Amongst them are TMAS members of the ACG Group, who quickly established a dedicated new nonwovens fabric converting and single-use garment making-up plant to supply to the Swedish health authorities. From a standing start in March, this is now producing 1.8 million square metres of converted fabric and turning it into 692,000 finished medical garments each month.

“In 2020 so far, we have seen new value chains being created and a certain amount of permanent reshoring is now inevitable,” says Premler-Andersson. “This is being backed by the new funding announced in the European Union’s Next Generation EU plan, with €750 billion marked for helping industry recover. As the European Commission President Ursula von der Leyen has stressed, “green and digital” transitions hold the key to Europe’s future prosperity and resilience, and TMAS members have new solutions to assist in both areas.”

Remote working

Automated solutions have opened up many possibilities for remote working during the pandemic. Texo AB, for example, the specialist in wide-width weaving looms for the paper industry, was able to successfully complete the build and delivery of a major multi-container order between April and May.

“Our new Remote Guidance software now makes it possible for us to carry out some of the commissioning and troubleshooting of such new lines remotely, which has been helpful” says Texo AB President Anders Svensson.

Svegea of Sweden, which has spent the past few months developing its new CR-210 fabric relaxation machine for knitted fabrics, has also successfully set up and installed a number of machines remotely, which the company has never attempted before.

“The pandemic has definitely led to some inventive solutions for us and with international travel currently not possible, we are finding better methods of digital communication and collaboration all the time,” says Svegea managing director Hakan Steene.

Eric Norling, Vice President of the Precision Application business of Baldwin Technology, believes the pandemic may have a more permanent impact on global travel.

“We have now proven that e-meetings and virtual collaboration tools are effective,” he says. “Baldwin implemented a home office work regime from April with only production personnel and R&D researchers at the workplace. These past few months have shown that we can be just as effective and do not need to travel for physical meetings to the same extent that was previously thought to be necessary.”

Pär Hedman, Sales and Marketing Manager for IRO AB, however, believes such advances can only go so far at the moment.

“Video conferences have taken a big leap forward, especially in development projects, and this method of communication is here to stay, but it will never completely replace personal meetings,” he says. “And textile fabrics need to be touched, examined and accepted by the senses, which is impossible to do via digital media today. The coming haptic internet, however, may well even change that too.”

Social distancing

The many garment factories now equipped with Eton Systems UPS work stations – designed to save considerable costs through automation – have meanwhile benefited from the unintentional social distancing they automatically provide compared to factories with conventional banks of sewing machines.

“These companies have been able to continue operating throughout the pandemic due to the spaced nature of our automated plant configurations,” says Eton Systems Business Development Manager Roger Ryrlén. “The UPS system has been established for some time, but planned spacing has proved an accidental plus for our customers – with improved productivity.”

“Innovations from TMAS member companies have been coming thick and fast recently due to their advanced know-how in automation concepts,” Premler-Andersson concludes.  “If anything, the restrictions imposed by the Covid-19 pandemic have only accelerated these initiatives by obliging our members to take new approaches.”

• Since the end of March 2020, COVID-19 has led to very low demand in all Business Groups
• Comprehensive crisis management implemented
• Loss in the mid double-digit million range expected in the first half of 2020
• Plans to introduce short-time working to adjust capacity in Switzerland and Germany
• Strategy will continue to be implemented

Due to COVID-19, a large number of spinning mills have stopped production worldwide. Since the end of March 2020, this has led to low demand for spare parts and wear & tear parts and delays in testing programs during the development of new machines. Customers are postponing investment projects or unable to implement them due to restrictions imposed by national governments. This results in low demand for new machines.

Comprehensive crisis management
Rieter has implemented comprehensive crisis management. Priorities are being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide.
The order backlog of well in excess of CHF 500 million is being processed largely according to plan, despite the existing bottlenecks in the supply chains. Less than 5% of the orders in the order backlog have been canceled.
Rieter has already implemented measures to ensure liquidity and reduce costs. The company has good net liquidity and undrawn credit lines in the mid three-digit million range.
Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level.

Loss expected in the first half of 2020
As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level. The effects of COVID-19 will place an additional burden on the first half of 2020. Rieter therefore expects sales in the first half of 2020 to be less than CHF 300 million. Despite the countermeasures implemented at the net profit level, this will lead to a loss in the mid double-digit million range.

Plans to introduce short-time working to adjust capacity
Rieter plans to apply for short-time working for the areas with forecasted low capacity utilization at the locations in Switzerland and Germany. The application will be for 40% short-time working in the third quarter of 2020. Talks with staff representatives will begin next week.
As a sign of solidarity, Rieter’s Board of Directors, Group Executive Committee and the senior management will waive 10%-20% of their salaries temporarily.

Implementation of the strategy
In recent years, Rieter has consistently implemented the strategy based on innovation leadership, strengthening the business in components, spare parts and services and the adjustment of cost structures. The company intends to forge ahead with the implementation of the strategy in the coming months, thus strengthening its market position for the time after the COVID-19 pandemic.
The next information on the course of business is planned with the publication of the half-year results on July 16, 2020
 

In these difficult times of the worldwide COVID-19 crisis, flexible reactions and fast decisions can be of imminent importance, particularly in the fragmented composite industry with its back-bone of small and medium-sized enterprises (SMEs).

In response, the Industrial and Business Consulting company AMAC under the lead of Dr. Michael Effing has signed today a cooperation agreement with Alpha Executive Advisory to jointly offer advisory services in Business Coaching, Acquisitions & Divestitures as well as Business Transformation and Crisis Management, also ad interim.

In detail, this cooperation is to identify the right fit in terms of capabilities and financial strength for companies looking for expansion or divestiture, to deliver support to innovative young start-up firms in order to faster penetrate the market and to smoothen the transition to the next owner in interim management or to make the next appropriate strategic step.

Perlon®, a Serafin Group company, is continuing to produce its’ quality filaments at all five sites for its’ customers in the current challenging climate. Production in China has been operating again as normal since the beginning of March after having to be temporarily halted due to the spreading of Covid-19. Production is now back up to 100%.

Production in Germany at our sites in Munderkingen (Baden-Wuerttemberg), Bobingen (Bavaria) and Wald-Michelbach (Hesse) as well as in the USA is continuing to run without any constraints. Therefore all sites are working to full capacity. In particular in the paper machine clothing area is showing an increase in sales which offsets a reduced demand in other areas such as automotive.

To manage the current situation responsibly, all hygiene measures at all our sites have been significantly increased so that the employees are protected as well as possible. There is hand sanitizer in every department and all of our production lines are disinfected several times a day. It has been explained to employees, what they should do in the current climate in order to minimise risk. Where possible employees are able to work from home. Perlon® has approximately 650 employees in Germany, over 80 in the USA and more than 100 in China.

High demand for monofilament for the paper industry
The paper industry is currently experiencing a rise in demand worldwide – and Perlon® is also benefitting from this, as customers need even more high quality monofilament and twisted yarns for the tensioning of paper machines. For the paper machine clothing field, Perlon® produced filaments are used to manufacture press fabric, which can be used either as a conveyor belt or for moisture removal on a paper production line. Due to the high mechanical strain through the presses, polyamide monofilaments or twisted yarns are therefore almost always used. Paper industry customers have increased their production recently. Whether it’s boxes to cope with the increased demand for online deliveries or paper for hygiene purposes (which everybody can identify with), there is an increased demand worldwide. The dental, hygiene and food preparation fields are also experiencing increased demand. To this end, Perlon® offers filaments for the manufacture of toothbrushes and high quality cleaning system brushes.

Net result impacted by operating losses and high impairments in North America

In 2019, Autoneum grew organically by 2.5% and has thereby significantly outperformed the declining market. In Swiss francs, revenue rose slightly to CHF 2 297.4 million. However, as previously communicated, operational inefficiencies in North America and impairments on fixed assets in that region had a particularly strong impact on profitability and led to a net loss of CHF –77.7 million. The Board of Directors therefore proposes that no dividend bedistributed for the 2019 financial year. Based on the new turnaround program launched in North America at the beginning of this year, significant profitability increases are expected for 2020.

2019 was an extremely challenging year for the automobile industry. The continuing weakness of the global economy, ongoing trade disputes and the increasing regulation of mobility impacted vehicle demand negatively. But 2019 was also a year of change for Autoneum internally. An in-depth analysis carried out by the new Group Management in the fall showed a need to reevaluate the Group’s performance over the short- to medium-term. In Business Group North America, the operational and commercial problems have proven more extensive than originally assumed. As a result, the turnaround program launched in spring 2019 was replaced at the beginning of 2020 with a dedicated and far more comprehensive program for the North American sites.

Revenue growth despite a shrinking global market
As a result of weak demand, the number of light vehicles produced worldwide fell again sharply in 2019 compared to the previous year; whereby the decline of almost –6% was much steeper than in 2018. Thanks to numerous production ramp-ups and a favorable model portfolio, Autoneum generated organic revenue growth1 of 2.5%, despite the global market cooling. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Profitability2 impacted by operational inefficiencies and impairments
Operational inefficiencies in North America and impairments on fixed assets in this region were the main reason for the – first-ever – negative net result in 2019. In addition, the sharp drop in automobile production in Europe and China as well as associated lower utilization of production capacities in the affected Business Groups also burdened the Group’s profitability. EBITDA excluding IFRS 16 effects decreased to CHF 126.0 million (2018: CHF 197.2 million), which corresponds to an EBITDA margin of 5.5% (2018: 8.6%). One-time charges from impairments in the amount of CHF –68.0 million had a negative impact on EBIT, reducing it to CHF –32.9 million (2018: CHF 114.1 million). Without these one-time charges, EBIT amounted to CHF 35.0 million. The EBIT margin 1 Change in revenue in local currencies, adjusted for hyperinflation. 2 The figures for the 2019 financial year include IFRS 16 effects. Autoneum Management Ltd . Media Release . March 4, 2020 Page 2/5 excluding impairments was at 1.5% in 2019, and taking those into account the margin decreased to –1.4% (2018: 5.0%).

For the sixth time now, Oerlikon Nonwoven will be showcasing market- and customer-oriented solutions for hygiene, medical, filtration and other technical applications at the globally-leading nonwovens trade fair INDEX in Geneva, Switzerland. Between March 31 and April 3, 2020, visitors to the trade fair can convince themselves of the Neumünsterbased systems constructor’s extensive product and process know-how.

Comprehensive spunbond portfolio – always the right solution
Oerlikon Nonwoven meanwhile has a very broad range of spunbond technology products and services. The process for manufacturing geotextiles from polyester or polypropylene has been optimized; it is characterized by high production capacities and yields, with simultaneously low energy consumption for producing benchmark nonwoven products.

For the manufacture of hygiene nonwovens, Oerlikon Nonwoven offers its new QSR (Quality Sized Right) systems. Here, the benefits of the Chinese machine construction partner’s nonwoven formation are integrated into the complete solution. The advantage for nonwovens producers: highly competitive solutions at attractive prices with comparably low investment.

Cost-efficiently manufacturing meltblown nonwovens
New, unique and highly sophisticated filter media can be easily and efficiently manufactured thanks to Oerlikon Nonwoven’s optimized meltblown technology. Whether as a stand-alone system with one or several positions, as ‘plug & produce’ installations for already existing systems or in conjunction with other technologies: the Oerlikon Nonwoven meltblown process already enables the cost-efficient manufacture of meltblown nonwovens with the quality requirements of tomorrow. Ever more producers are choosing the meanwhile extensively tried-and-tested and consistently further-developed Oerlikon Nonwoven meltblown solutions.

Airlaid technology for the nonwovens of tomorrow
Pulp or cellulose fibers as raw material for manufacturing nonwovens are currently virtually unrivaled with regards to sustainability and environmental compatibility. The Oerlikon Nonwoven airlaid process is the ideal solution for processing this raw material into high-end products for a wide range of applications. Today, there is huge demand for manufacturing solutions for high-quality, lightweight airlaid nonwovens with economically attractive production speeds and system throughputs. In this area, the patented Oerlikon Nonwoven formation process – which also permits the homogeneous mixing of the most diverse raw materials, while simultaneously guaranteeing superb evenness and homogeneous fiber laying – is setting standards even for nonwovens with low running meter weights. And the benefits of this technology are also increasingly gaining significance in sustainable recycling applications.

P&G patented PHANTOM technology from Teknoweb Materials
Also being showcased at the trade fair stand is the P&G patented PHANTOM technology from Teknoweb Materials, Oerlikon Nonwoven’s strategic partner for hygiene products and wipes. The PHANTOM technology is released to Teknoweb Materials by P&G in worldwide exclusive license. The PHANTOM technology is the superior dry laid alternative technology for manufacturing wet wipes from pulp and polymer fibers, for example. Compared to conventional, known processes, this technology offers superior performances with cost advantage in much more eco-friendly products. Dispensing with hydroentanglement renders subsequent drying of the material redundant. Targeted process management allows the optimal setting of the relevant product parameters such as softness, tenacity, dirt absorption and liquid absorption.

     Experienced people-centric leader to strengthen product and service capabilities

The leadership team of Baldwin Technology Company Inc. has appointed Joe Kline as its new President and CEO, effective January 17, 2020. Baldwin is a leading global manufacturer of innovative process-automation technology for the printing, packaging and converting industries. Acting CEO Kyle Chapman will continue as Baldwin’s Chairman, and devote greater focus to BW Forsyth Partners’ rapidly expanding portfolio. In 2012, Forsyth acquired thenpublic Baldwin and took it private.

Prior to joining Baldwin, Kline served as the president of a division in Eaton’s electrical sector. In addition, his previous experience includes commercial leadership roles at Eaton, Duke Manufacturing and Emerson. He holds a bachelor’s degree in electrical engineering from Ohio University and a Master of Business Administration in international business from Saint Louis University.

Kline’s appointment follows the 2019 appointments of four Baldwin business segment presidents: Rich Bennett at AMS Spectral UV, Tomas Anderbjer at Baldwin Precision Applications, Vince Balistrieri at Baldwin Vision Systems, and Matt Shishikura at Baldwin Japan.

Thanks to numerous new ramp-ups and the favorable portfolio of vehicle models supplied, Autoneum grew organically by 2.5% in a declining market. Adjusted for currency effects, Group revenue in Swiss francs amounted to CHF 2 297.4 million, 0.7% higher compared to the previous year.

For the second consecutive year, fewer vehicles were manufactured worldwide in 2019 than in the prior year. In particular, the persistently weak global economy and ongoing trade disputes have had an impact on vehicle demand. With only about 89 million vehicles produced, the market shrank by almost –6% compared to 2018. Despite this negative trend, Autoneum achieved an organic revenue growth of 2.5% through numerous production ramp-ups and a favorable mix of vehicle models supplied. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Revenue growth in North America, Asia and SAMEA region significantly above market The Business Groups North America, Asia and SAMEA (South America, Middle East and Africa) not only outperformed the negative market trend in each case, but also reported higher revenues compared to the previous year. In Europe only, the drop in automobile production caused a decline in revenue of the corresponding Business Group by –5.6% in local currencies. Business Group North America improved its revenue by 7.2% on a currency-adjusted basis, primarily driven by various production ramp-ups of German and Japanese vehicle manufacturers. Despite considerably fewer vehicles being produced in Asia, the Business Group increased its revenue in local currencies by 8.1% thanks to high-volume and new programs of European and Asian automobile manufacturers. Business Group SAMEA continued its growth course. Against the market slump in this region, revenue in local currencies and adjusted for inflation rose by 32.7%. This was mainly due to high-volume export programs in Turkey and South Africa as well as much higher production volumes compared to the previous year in the key SAMEA market of Brazil.

• Series order for a total of 500 units
• First SGL Carbon component project for manned autonomous aviation

SGL Carbon will begin serial production of landing gear made from braided carbon fiber material early this year. The landing skids will be installed in around 500 air taxis worldwide over the next two years.

The air taxis will be powered by several electric motors. To optimize the range of the taxis, every single gram counts. Measuring about two meters in length and 1.5 meters in width, the ultra-light landing skid will weigh less than three kilograms, making it about 15 percent lighter than a similar component made from aluminum. This increases the potential flight time capacity of the air taxi which is a key differentiator for the air taxi operator.

“With with our landing gear we help to shape this very new, promising application of manned, autonomous civil aviation. This involvement also demonstrates our wide range of services. From engineering, to prototype manufacture, to serial production with our own materials – all of our competences along the entire value chain made a contribution to the project ,” emphasizes Dr. Andreas Erber, Head of the Aerospace segment of the Composites – Fibers & Materials business unit at SGL Carbon.

The landing gear was developed in close collaboration between customer experts and specialists from SGL Carbon. The carbon fibers for the component are produced at the SGL Carbon plant in Muir of Ord, Scotland. The final part is being manufactured at the SGL Carbon site in Innkreis, Austria.

Intertextile Shanghai Home Textiles – Autumn Edition will return from 24 – 26 August 2020 at the National Exhibition and Convention Center (Shanghai), organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA). Stepping into its 26th edition, the trade fair will provide exhibitors the perfect opportunity to introduce new products and expand their distribution networks, as well as serving as a source of information and inspiration for professionals in every aspect of the industry.
 
Celebrating its 25th anniversary last August, the Autumn Edition of Intertextile attracted 1,147 exhibitors from 27 countries & regions, as well as 35,390 trade buyers from 117 countries & regions (2018: 104), reflecting the increasing internationalism of Messe Frankfurt’s textile fairs in China, and the growing opportunities for international suppliers to meet a wide range of buyers in Shanghai. The trade fair’s capacity to attract large and diverse crowds has reinforced its status as the leading business platform for the home textile industry in the Asia Pacific region.
 
In the next edition, a large collection of quality Chinese companies, as well as premier overseas brands will once again present the entire spectrum of home and contract textile products including:

• Textile editors
• Whole Home Products
• Windows & Upholstery
• Bedding, Bath, Kitchen & Table
• Carpets & Rugs
• Sun-Protection
• Wallcovering
• Digital Print & Technics
• Fibers, Yarns & Chemicals
• Textile Designs

Opportunities abound in China’s home textiles market
 
“The upcoming Autumn Edition of Intertextile is set to offer suppliers and buyers the best platform to capture new business opportunities, especially as we continue to focus on bringing together more key players from the textiles, interiors, architecture and hospitality sectors in China and internationally,” Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd said.
 
“Over the years, Intertextile has been evolving from a traditional trade fair to an immersive and interactive experience that inspires and engages attendees. Today, the fair is more than a business platform; it also delivers state-of-the-art home trends, valuable networking opportunities, as well as innovative and strategic solutions for brand development through a series of fringe programme events,” Ms Wen further explained.
 
As one of the selected exhibitors featured in the Talks & Tours series at the 2019 fair, Mr Thomas Luys, Sales Manager of LIBECO-LAGAE: “We had quite a diverse range of visitors, including an increase in e-commerce buyers, but also more traditional upholstery fabrics buyers. Our booth was also part of the Talks & Tours, so it was important to tell our story to a diverse range of visitors on this tour.”
 
 
To find out more about this fair, please visit: www.intertextilehome.com.
For more information about Messe Frankfurt textile fairs worldwide, please visit: http://texpertise-network.messefrankfurt.com.