From the Sector

• Strong operating result: EBITDA at EUR 217.8 mn, cash flow from operating activities at EUR 199.8 mn
• Major strategic projects continue fully on track – production start of the lyocell plant in Thailand in the fourth quarter of 2021
• Start of strategic cooperation agreement for textile recycling with Södra
• New milestones in the implementation of group-wide carbon neutrality: EUR 200 mn investment in existing locations in Asia
• Guidance 2021: Lenzing expects EBITDA of at least EUR 360 mn

The Lenzing Group reported a significant improvement in revenue and earnings in the first half of the year. Growing optimism in the textile and apparel industry and the ongoing recovery in retail caused a substantial increase in demand and prices on the global fiber market, in particular at the beginning of the current financial year.

Revenue rose by 27.5 percent to EUR 1.03 bn in the first half of 2021. This increase is primarily attributable to higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibers, especially in Asia. The focus on wood-based specialty fibers such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on the revenue development; the share of specialty fibers in fiber revenue rose to 72.8 percent in the reporting period. The negative impact of more unfavorable currency effects was consequently more than offset.

The earnings development essentially reflects the positive market development and was additionally reinforced by measures to improve efficiency. Energy and logistics costs increased significantly throughout the entire reporting period. EBITDA (earnings before interest, tax, depreciation and amortization) more than doubled and amounted to EUR 217.8 mn in the first half of 2021 (compared to EUR 95.6 mn in the first half of 2020). The EBITDA margin rose from 11.8 percent to 21.1 percent. Net profit for the period amounted to EUR 96.1 mn (compared to a net loss of EUR minus 14.4 mn in the first half of 2020) and earnings per share to EUR 3.06 (compared to EUR 0.06 in the first half of 2020).

“Lenzing had a very strong first half-year. The demand for our sustainably produced specialty fibers once again developed excellently,” says Stefan Doboczky, CEO of the Lenzing Group.

Die Deutsche Lichtmiete gewinnt mit ihrem Projekt „Beleuchtungsmodernisierung im LaaS Modell“ den Deutschen Award für Nachhaltigkeitsprojekte 2021 des DISQ Deutsches Institut für Service-Qualität in der Kategorie „Dienstleistung – Beratung“. Nach dem Wachstumschampion, Sustainability Heroes Award, Bundespreis Ecodesign und TOP Innovator 2021 ist das für den Marktführer für Light as a Service (LaaS) in Europa die fünfte Auszeichnung für sein nachhaltiges, erfolgreiches Geschäftsmodell innerhalb eines Jahres.
 
In ihrer Begründung bezeichnet die Jury das Projekt als Geschäftsmodell-Innovation, „der Zugang zu hocheffizienten Beleuchtungskonzepten wird erleichtert und professionell umgesetzt. Der Einsatz moderner LED-Technik ist ein großer Schritt Richtung CO2-Neutralität.“ Der Deutsche Award für Nachhaltigkeitsprojekte wurde erstmalig vom DISQ ausgelobt. In die Vorauswahl des DISQ gingen 125 Einreichungen aus 202 Nominierungen ein. Die hochkarätig besetzte Jury aus Wirtschaft, Wissenschaft und Medien um Schirmherrin und Bundesministerin a.D. Brigitte Zypris vergab insgesamt 49 Preise in 24 Kategorien. Ausgezeichnet wurden die besten Projekte in jeder Kategorie. Die Deutsche Lichtmiete ist Testsieger mit ihrem Projekt „Beleuchtungsmodernisierung im LaaS Modell“.
 
Der Fokus des Deutschen Awards für Nachhaltigkeitsprojekte liegt auf den 17 Zielen zur nachhaltigen Entwicklung der Vereinten Nationen (SDG – Sustainable Development Goals). Die Deutsche Lichtmiete ließ ihren Nachhaltigkeitsimpact 2020 nach dem imug Impact 360° Standard zertifizieren. Die unabhängige renommierte Nachhaltigkeits-Ratingagentur imug identifizierte einen „sehr starken Nachhaltigkeitsimpact“ und bestätigte der Deutschen Lichtmiete, „direkte und indirekte Beträge zu den UN-Nachhaltigkeitszielen“ zu leisten.

• Premiummarke aus Italien jetzt auch mit Light as a Service Mietkonzept

Zwei Spezialisten für individuelle LED-Lichtlösungen bündeln ihre Aktivitäten in einer strategischen Partnerschaft. Die Deutsche Lichtmiete ist mit ihrem Mietkonzept und Produktportfolio Marktführer für Light as a Service (LaaS) in Europa. Der italienische Leuchtenhersteller Artemide ist als Hersteller für Designleuchten und Innovationsführer in der Lichttechnologie weltweit etabliert. Über die Kooperation nutzen beide Unternehmen ihre Branchenkompetenz und kombinieren ihre sich ergänzenden Geschäftsmodelle. Die Premiummarke Artemide und die Deutsche Lichtmiete stehen für Innovationskraft, Nachhaltigkeit, Qualität und Erfolg im Bereich Licht. Durch die neue Vereinbarung profitieren Kunden auf beiden Seiten von dem Produkt- und Serviceportfolio.
 
Seit über 80 Jahren entwickelt der italienische Leuchtenhersteller Lichtlösungen, die traditionelles Handwerk, klare Formen, funktionale Technik und ansprechende Optik verbinden. Mit der preisgekrönten Schreibtischleuchte Tolomeo von Michele De Lucchi, der mit Issey Myiake entworfenen und prämierten Kollektion IN-EI oder den speziell für das Luxushotel Westin in der Elbphilharmonie Hamburg gefertigten Leuchten in Wellenform haben die Lichtspezialisten von Artemide Maßstäbe gesetzt. „Mit Artemide gewinnen wir einen Spezialisten für individuelle Sonderlösungen und Maßanfertigung, der unser eigenes Portfolio optimal ergänzt und uns neue Absatzwege und Zielgruppen eröffnet“, erklärt Alexander Hahn, Gründer und CEO der Deutsche Lichtmiete AG.
 
Die Deutsche Lichtmiete Light as a Service Komplettlösung bietet Industrie, Gewerbe, Gesundheits- und Kultureinrichtungen und der öffentlichen Hand eine Beleuchtungsmodernisierung mit LED-Technik. Steffen Salinger, Geschäftsführer Artemide Deutschland, erläutert: „Wir können mit unseren Lichtsystemen sämtliche Bereiche eines Projekts beleuchten und Räumen ein unverwechselbares Ambiente verleihen. Als ausgewählter Partner der Deutschen Lichtmiete sind unsere Lichttechnologien jetzt auch mit Light as a Service möglich.“

• Synergien für Stretch, Thermoregulation, Frische und Nachhaltigkeit
• Markenbekanntheit beim Verbraucher erhöhen
• Markteinführung auf der Intertextile in Shanghai

HeiQ und The LYCRA Company haben eine umfassende Zusammenarbeit über mehrere Technologie- und Markenplattformen hinweg vereinbart. Aufbauend auf Sondierungsgesprächen, die Anfang 2019 begannen, gaben HeiQ und die The LYCRA Company bekannt, ihre gemeinsamen Philosophien und Stärken in der Textilwissenschaft, in sozialen Netzwerken und im globalen Marketing zu nutzen, um mit ihren Innovationsplattformen einen breiten Markt zu adressieren. Die Unternehmen planen Innovationen für Verbrauchermarken in den Marktsegmenten Stretch, Thermoregulation, Frische und Nachhaltigkeit.

Die erste Innovationsplattform kommt noch in diesem Sommer auf den Markt. Sie soll den Verbrauchern eine neue Dimension von Vertrauen und Komfort bieten, indem HeiQ Frische- und antivirale Vorteile mit der Qualität und den Vorzügen von Stretch-Stoffen verbindet, die nach dem neuen Markenstandard der LYCRA® freshFX® Technologie zertifiziert sind. Die Vorbereitungen für diese Innovation laufen derzeit mit einem anfänglichen Fokus auf lokale Wertschöpfungsketten in China für den chinesischen Verbraucher. Die Markteinführung ist für die Intertextile-Messe in Shanghai Ende August vorgesehen. Der Fokus dieser Kooperationen wird darauf liegen, relevante Verbraucherbedürfnisse nach Qualität, Langlebigkeit und nachhaltiger Kleidung zu erfüllen. Stoffmuster und Prototypen werden im Spätsommer für die kommerzielle Order zur Verfügung stehen.

„Unser Ziel bei HeiQ ist es, Marken und Produzenten in der Textilindustrie in die Lage zu versetzen, mehr Komfort, Performance und Nachhaltigkeit in Textilprodukte zu bringen und gleichzeitig die Markenbekanntheit bei den Verbrauchern zu erhöhen, die am meisten von diesen Innovationen profitieren werden", sagt Carlo Centonze, Mitbegründer und CEO der HeiQ Gruppe.

„Die Kollaboration basiert auf einem starken Fundament gemeinsamer Werte und Philosophien, die unsere beiden Unternehmen teilen", so Julien Born, CEO The LYCRA Company. „Wir freuen uns darauf, die natürlichen Synergien zwischen uns zu nutzen und gemeinsam neue Lösungen für die Bekleidungsindustrie zu finden."

Circular fashion and textile technology group Infinited Fiber Company has secured investments totaling 30 million euros in its latest financing round completed on June 30. The round also brought Infinited Fiber Company new investors, including sportswear company adidas, Invest FWD A/S, which is BESTSELLER’s investment arm for sustainable fashion, and investment company Security Trading Oy. Among the existing investors contributing to this round of financing were fashion retailer H&M Group, who was the lead investor, investment company Nidoco AB, and Sateri, the world’s largest viscose producer and a member of the RGE group of companies.

This securement of new funding follows Infinited Fiber Company’s April announcement of plans to build a flagship factory in Finland in response to the strong growth in demand from global fashion and textile brands for its regenerated textile fiber Infinna™. The factory, which will use household textile waste as raw material, is expected to be operational in 2024 and to have an annual production capacity of 30,000 metric tons. The new funding enables Infinited Fiber Company to carry out the work needed to prepare for the flagship factory investment and to increase production at its pilot facilities in the years leading to 2024.

“We are really happy to welcome our new investors and grateful for the continued support from our older investors,” said Infinited Fiber Company co-founder and CEO Petri Alava. “These new investments enable us to proceed at full speed with the pre-engineering, environmental permits, and the recruitment of the skilled professionals needed to take our flagship project forward. We can now also boost production at our pilot facilities so that we can better serve our existing customers and grow our customer-base in preparation for both our flagship factory and for the future licensees of our technology.”

H&M Group is one of Infinited Fiber Company’s earliest investors. They first invested in Infinited Fiber Company in 2019.

H&M Group has also signed a multiyear sales deal with Infinited Fiber Company to secure its access to agreed amounts of Infinna from the planned flagship factory.

New investor BESTSELLER has struck a similar sales deal with Infinited Fiber Company.

In addition to strong interest by global fashion leaders, the technology has significant promise for major textile fiber producers. Allen Zhang, President of Sateri, said: “Sateri is excited to continue to invest in and collaborate with Infinited Fiber Company as part of our long-term commitment towards closed-loop, circular and climate-positive cellulosic fibers. This financing round marks a major milestone for our collaboration in scaling up next-generation fiber solutions.”

Infinited Fiber Company’s flagship plant preparations are also proceeding on other fronts. Several Nordic and international investment banks have given Infinited Fiber Company proposals on the financing options for the investment.

Infinited Fiber Company’s technology turns cellulose-based raw materials, like cotton-rich textile waste, into Infinna, a unique, premium-quality regenerated textile fiber with the natural, soft look and feel of cotton. Infinna is biodegradable and contains no microplastics, and at the end of their life, garments made with it can be recycled in the same process together with other textile waste.

• 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).

Avgol, a subsidiary of global petrochemical producer Indorama Ventures Public Company Limited (IVL),  appointed Mr. Tommi Bjornman as its new CEO, replacing Mr. Shachar Rachim who takes up a broader role as CEO leading the Hygiene vertical of IVL’s Fibers business.

Mr. Bjornman’s new position with Avgol took effect on 1 June, 2021. The Hygiene business is one of 16 integrated verticals under Indorama Ventures, and comprises brands including Avgol, Auriga, FiberVisions, ES FiberVisions, Trevira and Wellman. The Hygiene vertical provides fibers and filaments used in hygiene, medical, personal protective equipment (PPE) and industrial disposable applications as well as durable textile applications used for automotive interiors, furnishings, wall and window coverings and related goods. Mr. Bjornman continues to report to Mr. Rachim who retains his role as an Avgol Board member.

• Key Provision Guarantees Long-Term Contracts for Domestic PPE

The National Council of Textile Organizations (NCTO), representing the full spectrum of U.S. textiles from fiber through finished products, issued a statement today welcoming Senate passage of the bipartisan U.S. Innovation and Competition Act (USICA). As part of the bill’s effort to address overall manufacturing and technology competitiveness issues from the perspective of the U.S.-China relationship, the legislation will help reconstitute a domestic supply chain for personal protective equipment (PPE).

“We commend the Senate for ushering the bipartisan USICA, designed to make the U.S. more globally competitive against China, across the finish line which includes an important provision to help onshore personal protective equipment (PPE) production,” said NCTO President and CEO Kim Glas.

“We sincerely thank Senator Rob Portman (R-OH) and Senator Gary Peters (D-MI) for working to include their Make PPE in America Act in the USICA, a critical priority of the U.S. textile industry,” Glas said. “This language will help onshore critical production of medical personal protective equipment (PPE) by guaranteeing long-term contracts for American-made PPE and establishing a much-need domestic procurement requirement for federal purchases of these essential products. It will ensure that that U.S. taxpayer dollars are utilized to construct and secure a domestic production chain for the manufacture of lifesaving PPE and other essential medical supplies,” Glas said.

NCTO led an industry and labor coalition effort supporting the inclusion of the Make PPE in America Act in the USICA.  The USICA contains the key provisions of the Portman-Peters bill that ensures all PPE purchased by the Departments of Homeland Security, Health and Human Services and Veterans Affairs are Berry Amendment-compliant and guarantees long-term contracts for these critical items to incentivize domestic production.

“While we support the overall USICA package, which includes many items of critical importance to the U.S. textile industry, our industry is extremely concerned about a provision that was added in the eleventh hour that could sidetrack the critical effort to onshore a self-sufficient PPE industry,” Glas added. “This harmful provision would unilaterally suspend normal tariffs and penalties assessed on PPE imports for two years. Doing so would allow China to maintain its stranglehold on the U.S. PPE market, while working at cross-purposes with other provisions of the bill designed to incentivize much needed investment in domestic PPE manufacturing. U.S. manufacturers retooled production and have significant idle capacity.  It is critical that the House of Representatives strike this damaging language if this legislative package is considered.

“Congress and the administration need to keep PPE tariffs in place to support U.S. businesses and workers who abide by higher labor, environmental and production standards.  The industry reconstituted supply chains to help healthcare frontline workers.  Our industry has significant capacity to help meet U.S. medical needs.  This provision is the absolute wrong message to send to American manufacturers and its workforce.” Glas noted.

Lectra finalizes June 1^st, the acquisition of all outstanding shares of Gerber Technology, on a cash-free debt-free basis, for 175 million euros – financed through a 140 million euro loan and the Group's available cash – plus 5 million newly issued Lectra shares to AIPCF VI LG, Gerber Technology’s sole shareholder.

This strategic combination, of which all stages have now been successfully completed, has led to the creation of a leading global Industry 4.0 player for the fashion, automotive and furniture markets.

“The union of our respective innovative expertise, our state-of-the-art offers and our talented resources will enable us to bring long-term value to our customers. We will now be in an even better position to support our customers throughout the world in accelerating the digital transformation of their operations,” says Daniel Harari, Chairman and CEO of Lectra.

This acquisition, which was announced on February 8, was approved by Lectra’s Board of Directors on March 25 and by Lectra’s shareholders June, 1.

The textile industry is constantly searching for new, sustainable, and circular materials. Following thorough research and testing, Spinnova and KT Trading have developed a natural leather fabric made from leather waste without harmful chemicals.

"Leather is an amazing high-quality material with unique properties. With this new textile, we have taken yet another step towards completing the circular economy for leather," says Kristian Geert Jensen, CEO of KT Trading, who now has a joint venture with Spinnova.

Spinnova CEO: Sustainable innovation
Together with KT Trading, ECCO’s key leather provider, Spinnova has established the Respin company - a new joint venture. The partners are already constructing a leather fibre production pilot plant in Finland.

ECCO’s Applied Research division and Spinnova have been in a R&D collaboration since 2018 and have made successful trials with spinning the protein biomass into fibre. Processing leather raw material does not require further technology development from Spinnova. The company already has proof of concept from using the method on wood-based raw material.