From the Sector

Lenzing – In the first quarter of 2022, the Lenzing Group, like the entire manufacturing industry, was significantly affected by the extreme developments in global energy and commodity markets. A predominantly positive market environment and the strategic focus on specialty fibers such as those of the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands nevertheless ensured a solid revenue and earnings trend, with the effect of higher costs being largely offset.

•    Solid revenue and earnings performance despite extremely tight cost situation
•    Personnel changes on the Managing and Supervisory Boards – Stephan Sielaff appointed as the new CEO
•    Successful production start at world’s largest lyocell plant in Thailand
•    World’s largest pulp mill of its kind successfully started-up in Brazil
•    Premium textile brand TENCEL™ celebrates 30 years of sustainable fiber innovation

The Lenzing Interim Report 01-03/2022 is available on the company website.

Hexcel will present a wide range of high-performance composite innovations for the Automotive, Marine, Wind Energy and Recreation markets during JEC World 2022 in Paris on May 3 – 5.

G-Vent Technology for Marine Structures
Hexcel has developed a new technology for out-of-autoclave (OoA) processing that delivers a game-changing reduction in process time and cost for marine manufacturers without compromising mechanical performance. Hexcel has leveraged its experience in aerospace and wind energy to develop its new G-Vent technology for OoA processing of highly loaded, thick section marine structures such as masts, foils, and wind-assisted ship propulsion (WASP) components. A full range of Hexcel marine prepregs are now available with integrated G-Vent technology, reducing the requirement for debulking steps and ensuring extremely low porosity (<1%) regardless of the laminate thickness. Leading marine non-destructive testing specialists Q.I. Composites recently confirmed that the thick section G-Vent panels they had evaluated had void contents and laminate quality in line with state-of-the-art autoclaved prepreg components. Visitors to the Hexcel stand will see a unique 400mm carbon cube cured in a single stage using 695 layers of HexPly M79 carbon fiber UD600 prepreg with G-Vent technology.

New HexPly® Nature Range Sustainable Prepregs
HexPly® Nature Range prepregs feature proven resins such as HexPly M49, M78 and M79 with bio-derived epoxy resin content. Created for use in all industrial markets, HexPly Nature Range materials can be seamlessly integrated into existing production processes, maintaining consistent mechanical performance and processing properties. A dedicated sustainability corner of the Hexcel stand will detail Nature Range products optimized for automotive, marine, wind energy and winter sport applications. The display will include an alpine ski produced by leading manufacturer Tecnica Group Ski Excellence Center which produces skis for Blizzard and for Nordica using HexPly Nature M78.1 UD flax prepreg material. In addition to the reduced environmental impact of the sustainably grown reinforcement, the flax fiber laminates also improve impact resistance and vibration damping in the ski.

HexPly® XF Surface Technology for Improved Part Surface Finish Quality
HexPly XF is a lightweight, semi-preg material that replaces traditional in-mold gel coat. It eliminates time-consuming refinishing work typically required to obtain a paint-ready surface and produces lighter, more consistent parts with shorter cycle times and a cleaner working environment. Visitors to the stand will see a composite panel illustrating a high-quality painted surface enabled with XF technology in a diverse range of industrial applications such as super yacht roof parts, Class A surface automotive panels, and both prepreg and infused wind turbine blades.

HexPly® M49 Prepreg for Automotive Visual Carbon Parts
HexPly M49 is easy to process and is especially suitable for visual carbon fiber-look applications such as the Brabus hood scoop on display on the Hexcel stand at JEC.

HexPly® Prepregs and HiMax® Reinforcements for Performance Marine Structures
Using a scale model of a Gunboat 68 performance sailing catamaran, Hexcel will illustrate how its HexPly and HiMax materials provide manufacturers with a complete set of lightweight composite solutions for high-performance marine structures. HexPly prepreg was selected for critical structural parts of the Gunboat 68 and provides very high mechanical performance including high dry and wet Tg.

Heavyweight HiMax reinforcements offer high deposition rates and remain easy to handle after cutting, making them highly suitable for industrial applications. In combination with a lightweight PrimeTex® woven fabric, the package of carbon fiber HiMax materials developed for the Gunboat 68 enabled consistent resin flow during infusion with reduced surface print-through.

Hexcel Fibers and Reinforcements for Lightweight Sporting Equipment
Sporting equipment manufacturers rely on Hexcel composite materials to deliver the ultimate performance at the lowest possible weight. Hexcel will exhibit a number of the latest high-performance sporting equipment applications such as a Bauer hockey stick featuring PrimeTex 98 gsm AS4C 3K fabric and a Corima tri-spoke cycling wheel made with lightweight Hexcel carbon fiber UD tape. Hexcel will also demonstrate how its HexTow® carbon fibers are used in key leisure and marine applications by displaying an AEROrazr solid carbon rigging component manufactured by spar and rigging manufacturer Future Fibres for the 36th America’s Cup.

• The first year of TECHNYL® in China under the DOMO brand name; DOMO will be pushing forward its expansion plan of high-performance polyamides in China
• Continued innovation in engineered nylon materials for a sustainable future

DOMO Chemicals announced a long-term investment plan in China to continue expanding its production capacity of TECHNYL® high-performance polyamides. This plan aims to meet growing demand in the automotive, electrical & electronics, and industrial consumer goods industries, and help build a sustainable future. DOMO Chemicals acquired Solvay's Performance Polyamides business in 2020 and has sold the TECHNYL® products globally since February 1, 2022, including in China, one of the company's key strategic markets.

The global demand for polyamide materials is currently booming at a CAGR of up to 3 percent. The adoption of new energy vehicles (including pure electric, hybrid and fuel cell vehicles) is expected to reach 45 percent globally by 2030, and automakers are increasingly using sustainable materials to make components, which are key growth drivers of the polyamide market. In addition, the demand for miniaturized circuit breakers, contactors, plug switches, and other components in the electrical and electronics and industrial consumer goods industries further opens up the application potential for polyamide materials.

DOMO Chemicals will continue to expand the capacity of its production site in Jiaxing, Zhejiang Province, which has been planned to be gradually introduced in three stages:

• Since March 2022, an additional 6,000 tons of capacity has been made available, with the plant achieving the total capacity of 14,000 tons of PA6 from April onwards.
• A 35,000-ton new plant in Haiyan is planned to be completed in the third quarter of 2023, in which DOMO Chemicals has invested more than 14 million euros (97 million yuan).
• Going forward, DOMO Chemicals will further expand the plant, gradually increasing its capacity to 50,000 tons.

In addition to the expansion, the plant will also use renewable energy wherever possible, adopt advanced water and air treatment technologies to reduce water consumption and CO2 emissions, and fully comply with Health, Safety and Environmental Management System (HSE) regulations. DOMO Chemicals will improve HSE compliance continuously and work closely with the local government, while partnering with key local and global customers to accelerate innovation and development across a wide range of industries.

TECHNYL® has been committed to helping customers improve their low-carbon competitiveness since its very first year in China. It allows OEMs and component makers in the automotive, electrical & electronics, and industrial consumer goods segments to create lightweight, durable, aesthetically pleasing, smart and environmentally-friendly products.

With the wipes sector adapting to demands for products that protect consumers from COVID-related risks, industry experts will present the latest insights for moving forward post-pandemic at the World of Wipes® (WOW) International Conference.   

The shift from “clean” to “safe” in the world of wipes will be among the key topics thought-leading speakers will address at the in-person event, June 27-30, at the Marriott Marquis in Chicago.

The information-packed program will tackle timely topics to support decision making on the following key themes: Circular and Sustainable Wipes, Supply Chain Challenges in Wipes, Nonwoven Substrates for More Sustainable Wipes, Trends in the Wipes Market and Among Consumers, Disinfection Concerns and New Technologies, Sustainable Wipe Packaging Trends and Developments in Flushability Issues.

World of Wipes Session Highlights

• Lifestyle Shifts and the World of Wipes: Meeting the Changing Consumer Demand to Secure Growth – Liying Quian, Research Analyst, Euromonitor International will explore personal and beauty care trends based on consumer surveys that could shape wipes’ long-term performance
• The Supply Chain – Import Pressures Versus Domestic Manufacturing – Jacob Smith, Director, Supply Chain and Customer Care, Health, Hygiene, and Specialties Division, North America, Berry Global will share his expertise and experience on how COVID-19 has impacted domestic production and international sourcing of wipes
• Packaging Sustainability:  A Global Perspective – David Clark, Vice President of Sustainability, Amcor will look at how consumer brands, retailers and others are responding to consumer demand for more sustainable packaging and discuss progress and risks in the U.S. and other countries
• How Sustainable are You Willing to Be? New Technology to Support Use of Recycled Fiber Sources – Richard Knowlson, Principal, RPK Consulting will tackle the question of how new manufacturing technology can help produce more sustainable nonwoven substrates in today’s price-sensitive environment
• Dead Turtle Logos – What We Know So Far in the EU – Heidi Beatty, Chief Executive Officer, Crown Abbey, LLC will share the latest learnings on the European Union’s Single Use Plastic Directive and the impact of the plastic-free packaging logos on consumer attitudes
• Challenges and Pitfalls of Scaling Up a Waste Cleaning Wipes Collection and Recycle System – Sergio Barbarino, Research Fellow, Fabric and Home Care Open Innovation, Procter & Gamble Distribution Company Europe will look at cleaning wipes’ potential to be recycled and become a convenient pioneering experimental platform
• Case Study: Surface Disinfection Incompatibility with Medical Devices Creates Potential Patient Risks – Caroline Etland, Ph.D., RN. CNS, ACHPN, Associate Professor, Hahn School of Nursing, BINR, University of San Diego will share real examples of the issues healthcare facilities face with surface disinfection incompatibility that make cleaning and disinfection a major challenge

In addition to the conference program, WOW 2022 also features two nights of tabletop displays and receptions; the presentation of the World of Wipes Innovation Award® and the INDA Lifetime Technical Achievement Award; and 11 hours of face-to-face engagement during a welcome reception, first-time attendee mentorship program, and breakfast connections. The event kicks off with the WIPES Academy, a 1.5-day value-added training opportunity on June 27-28.

• Dividend of EUR 4.35 per share approved
• Lenzing Supervisory Board reduced from ten to nine elected members
• Dipl.-Bw. Peter Edelmann steps down from the Supervisory Board at his request
• Cord Prinzhorn, MBA, elected Chairman of the Supervisory Board

The 78th Annual General Meeting of Lenzing AG on April 26, 2022, passed a resolution to pay a dividend of EUR 4.35 per share in accordance with the Managing Board’s profit distribution proposal, which had been approved by the Supervisory Board. As a consequence, the payment of the dividend amounts to a total of EUR 115,492,500. The payment will be made on May 03, 2022.

The Annual General Meeting formally discharged the members of the Managing Board and the Supervisory Board from liability for the 2021 financial year, and set in advance the remuneration for the members of the Supervisory Board for the 2022 financial year. In addition, a vote was hold concerning the principles for the remuneration of the members of the Managing Board and the Supervisory Board (remuneration policy). The remuneration policy of Lenzing AG for the performance-based remuneration of the Managing Board is linked not only to financial performance criteria but also to non-financial sustainability criteria (ESG), which further promote the sustainable business strategy.

Elections to the Supervisory Board
Dipl.-Bw. Peter Edelmann stepped down from the Supervisory Board upon his own request, at the end of the Annual General Meeting. Mr. Edelmann has served as a member of the Supervisory Board since 2018 and as its Chairman since 2019, as well as on all committees of Lenzing AG.

The Annual General Meeting passed a resolution to extend the Supervisory Board mandates of Mag. Patrick Prügger (until the AGM that passes related resolutions concerning the 2022 financial year) and of Dr. Astrid Skala-Kuhmann (until the AGM that passes related resolutions concerning the 2025 financial year).

The Supervisory Board of Lenzing AG now consists of nine members elected by the AGM: Mag. Helmut Bernkopf, Dr. Christian Bruch, Dr. Stefan Fida, Dr. Markus Fürst, Dr. Franz Gasselsberger, Melody Harris-Jensbach, Cord Prinzhorn, MBA, Mag. Patrick Prügger and Dr. Astrid Skala-Kuhmann. Herbert Brauneis, Ing. Daniela Födinger, Helmut Kirchmair, Georg Liftinger und Johann Schernberger were appointed to the Supervisory Board by the Works Council.

At the constitutive Supervisory Board meeting following the AGM, Cord Prinzhorn, MBA, who had returned to the Supervisory Board after serving as CEO on an interim basis, was elected Chairman, and Dr. Stefan Fida was elected Deputy Chairman of the Supervisory Board.

Archroma and Stony Creek Colors (“Stony Creek”), a manufacturer of traceable natural indigo dyes, announced that they have entered a strategic partnership to produce and bring to the market Stony Creek’s IndiGold™ high-performance plant-based pre-reduced indigo at scale.

Stony Creek extracts its dye from proprietary Indigofera plant varieties grown in partnership with family farms as a regenerative rotational crop.

Stony Creek Colors developed the new IndiGold™ concept as on of the world’s first pre-reduced natural indigo dyes, which was then developed with Archroma to offer a plant-based alternative to synthetic pre-reduced indigo. The dyestuff will be sold as a 20% concentration in a soluble liquid form that displays similar performance to comparable synthetic indigo products available on the market.

Stony Creek Colors evolved into an innovative leader in plant-based indigo due to its complete development of an improved agricultural value chain, from seed breeding and production to biomass harvest and extraction. The company has been selling its US grown indigo to denim mills since 2015.

The pre-reduced plant-based indigo partnership took root in 2020 when Stony Creek was looking to work with like-minded partners to produce the new dyestuff at scale. Archroma emerged as the ideal partner as the company is well known for its expertise in indigo manufacturing and application, as well as for its commitment to transform the denim industry towards creating better blue jeans.

Archroma immediately offered to support the idea of Stony Creek Colors with extensive pilot scale manufacturing trials and engaged with its network of denim machinery manufacturers to test the first samples in industrial conditions. The trials showed excellent coloration and the typical indigo wash down, as with synthetic indigo. Archroma will produce the first batches of IndiGold™ in Salvatierra, Mexico, and has other locations where the product could be made. The company will support Stony Creek Colors through its manufacturing and logistics capabilities, and its expertise in denim dyeing with customers using pre-reduced indigo.

While this development was underway, the global innovation platform Fashion for Good selected Stony Creek Colors as an innovator in its global Innovation Program. The program connects brands with innovators to work together to test, validate and ultimately scale disruptive innovations in the fashion industry to drive positive impact. Through the program, Fashion for Good facilitated a collaboration between brand partner Levi Strauss & Co. and Stony Creek Colors which was announced in December 2021. The partners will pilot the use of IndiGold™ in denim mills at scale, with the goal of unlocking key learnings around shade application and other efficiencies of this new dyestuff.

High-performance yarns now offer almost unlimited possibilities for replacing traditional raw materials in a vast range of technical applications. Often tailor-made, these filament yarns go way beyond the conventional idea of ‘textiles’ – finding new uses in sectors such as automotive, aviation, maritime, medical and construction, among many others.

Technical textiles are everywhere in our daily lives today, even if we may not always realize it. Some are in more obviously textile products, from sewing threads to artificial turf. But then, take cars as an example: modern vehicles are stuffed with parts made from sophisticated yarns. It’s common for producers of automotive parts now to send template material and requirement lists to Swiss Textile Machinery members, trusting their expertise and experience. Members operate development and testing centers with latest machine installations, where their experts devise customized solutions, as well as calling on the pure innovative spirit which is part of their DNA.

At the extremes
Technology drives applications beyond our current imagining in the case of Heberlein air splicers. Developed for a wide range of uses with high-strength technical fibers, they have no problems splicing aramid fibers up to 16’100 dtex, carbon up to 30’000 dtex, Dyneema up to 5’500 dtex, and glass up to 4’800 tex. Using compressed air, the splicers produce a tear-resistant, homogeneous splice of material without interfering knots.

Retech has the technology to achieve specifications for filament yarns, drawing and stretching fibers to perfection. Top heated godet rolls – many customized – are developed for high-performance fibers. Temperatures up to 400 °C can be achieved. Combining the right settings and wide speed ranges for each specific process results in unique end-products.

Fabric producers of high-end applications must avoid any quality risk. Yarn producers are well aware of this responsibility, so they use precision package winders for technical yarns, developed by Rieter’s subsidiary SSM. Taking yarns from ring twisting bobbins, its specialist finish winders can produce coarse-count technical yarns up to 50’000 dtex, offering a new level of flexibility and winding quality.

Lifestyle essentials
At first glance, motorists might fail to notice many of the technical yarns ‘hidden’ inside their cars. These products have functions such as providing stability with hardly any weight, or absorbing tensile forces at defined elongation. This kind of controlled elongation behaviour, for example, arises from the choice of textile material and the special construction of the yarns used.

Such specifications make twisting and cabling machines essential for the automotive industry. Saurer offers machines for the production of technical yarns made from a variety of feed materials in a very wide yarn count range. They are needed for vehicle products such as tire carcasses, toothed engine belts, seat belts, airbags and lorry tarpaulins.

Technical yarns also play a surprising role in our mobile devices. Tapping, scrolling and swiping are second nature for billions, with our phones and a plethora of other lifestyle essentials. Yet, how many people would know that the touch-sensitivity we take for granted on these screens is largely made possible by twisted glass fibers. Bräcker, part of Rieter’s components business, offers a selection of vertical sinter metal rings and nylon travelers for glass fiber twisting, so that mills can achieve high levels of productivity and quality.

Future unlimited
Automotive and communication technology are already important industries for Swiss Textile Machinery members, along with well-known technical textiles markets in sectors such as medical, transport and construction. Smart-wear is already noted as a field with significant potential. Naturally, members are constantly investigating other possibilities. Swiss textile machinery is already applied in energy (batteries), and plastics.

The Swiss Textile Machinery Pavilion will be at the Techtextil exhibition in Frankfurt, Germany, taking place from 21 to 24 June 2022.

For the year 2022 SCOTT Racing Team confirms its partners who kept developing and evolving its uniform in the last three years: the knitwear factory Rosti, known for its technical excellence on product and image, the premium stretch fiber ROICA™ by Asahi Kasei, internationally recognized for stretch innovation and responsibility, and Sitip, a company specializing in the production of stretch and circular fabrics that combines tradition and innovation with a choice of sustainable production. A uniform created starting from the athletes' needs to offer them the best solution in terms of style and ergonomics, high performance, easy maintenance, perfect fit and sustainability.

This year, the evolution of research and development has led to the creation of new responsible shorts, made with NATIVE-THUNDERBIKE POWER fabric by Sitip in recycled polyamide and ROICA™ EF yarn by Asahi Kasei. A fabric designed for high-performance sports, particularly suitable for making cycling pants for its maximum coverage and UV protection - thanks to ECLIPSE Sun Protection technology - breathability, comfort and fit. Also the shirt has been produced with Sitip recycled fabrics - NATIVE-BICIMANIA and NATIVE-PIRATA - made with Asahi Kasei's ROICA™ EF* sustainable, stretch and certified recycled yarns. This composition, together with Sitip MICROSENSE Soft Performance technology, made the shirt breathable, offering maximum comfort on the skin.

• Sales increase of 9.5% to €1,007.0 million driven by almost all business units
• EBITDApre improves by 50.9% to €140.0 million, reaching the upper end of the 2021 guidance raised in July
• Net financial debt reduced from €286.5 million to €206.3 million
• Start of business in 2022 overshadowed by uncertainty resulting from the war in Ukraine

Rising demand in almost all market segments led to a 9.5% increase in Group sales to €1,007.0 million in fiscal 2021 compared to the previous year (2020: €919.4 million). Almost all business units contributed to the pleasing sales performance. At 50.9%, EBITDApre improved disproportionately to Group sales and amounted to €140.0 million in fiscal 2021 (2020: €92.8 million). Increased sales and the associated higher capacity utilization contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation initiated at the end of 2020.*

Outlook
Based on the assumptions outlined and including the costs of the energy hedges, the company expects Group sales for the 2022 financial year to be at the previous year's level and EBITDApre to be between €110 million and €130 million.*

* See attachment document for more information,

• Winners in Six Categories to be Announced at IDEA® 2022 in Miami Beach

Online voting for the prestigious IDEA® Achievement Awards representing the “best of the best” innovations in the global nonwovens and engineered fabrics industry in six categories will open on Feb. 28.

Industry professionals will have the opportunity to vote for the winners from the finalists and see award-winning achievements in person at IDEA® 2022, the World’s Preeminent Event for Nonwovens & Engineered Fabrics, March 28-31, at the Miami Beach Convention Center.

Presented by INDA, in partnership with Nonwovens Industry magazine, the awards recognize the leading introductions in equipment, raw materials, short-life, long-life and nonwovens products, and sustainability. To vote on the Nonwovens Industry website, visit: https://www.nonwovens-industry.com/idea-reg-achievement-awards

In addition, INDA will unveil the IDEA® 2022 Lifetime Achievement Award honoree and Nonwovens Industry will announce the IDEA® Entrepreneur Achievement Award recipient at the event. 

All of the winners will be announced on March 30 at a ceremony at IDEA® from 9:30 a.m. to 10:30 a.m. moderated by Dave Rousse, President, INDA and Karen, McIntyre, Editor, Nonwovens Industry.

Finalists Named

The INDA Technical Advisory Board, consisting of technical professionals from member companies, has narrowed the competition from more than 100 online nominations to the following 18 finalists selected for their leading innovations since the last IDEA show in 2019.

Now, the industry will have the chance to select their top choices from the three finalists in each of the following six categories through the online voting process:

1-    IDEA® Equipment Achievement Award

ESC-8 – Curt G. Joa, Inc.
Elastic Thread Anchoring (ETA) Sonotrode – Herrmann Ultrasonics Inc.
Doffer Airlay Card – Technoplants SRL
 

2-    IDEA® Raw Material Achievement Award

sero™ premium hemp fiber – Bast Fibre Technologies Inc.
ODOGard – Rem Brands, Inc.
SharoWIPES™ – Sharon Laboratories
 

3-    IDEA® Short-Life Product Achievement Award

MDP™ – Dermasteel, Ltd.
Organic 2.0 – Ellepot A/S
LifeSavers Wipes – LifeSavers LLC
 

4-     IDEA® Long-Life Product Achievement Award

Canopy Hero Pro – Canopy
Long-Life Cellulose-based Nonwovens for Higher Performance in Reusable Baby Diapers – Kelheim Fibres GmbH and Sumo Diapers
Nanofiber Cabin Air Filter – MANN + HUMMEL GmbH
 

5-    IDEA® Sustainability Advancement Award

Pureflow8 – In Flight Material Separator – Diaper Recycling Technology Pte. Ltd.
Fitesa® 100 Percent BioBased Bico – Fitesa
Fiber-based Screw Caps – Glatfelter Corp. and Blue Ocean Closures
 

6-    IDEA® Nonwoven Product Achievement Award

Sontara® Silk – Glatfelter Corp.
HYDRASPUN® Aquaflo – Sustainable Nonwoven Substrates – Suominen Corporation
LS SAF™ Nonwoven Fabrics –Technical Absorbents
 

Moving forward after this year, the IDEA® Achievement Award will be presented every two years under the new cycle announced for the event with the subsequent IDEA® taking place April 23-25, 2024.