From the Sector

Hexcel is pleased to announce Type Approval Certification of its HexPly® M9 prepreg materials by DNV GL. The addition of the HexPly M9 prepreg range to Hexcel’s already comprehensive DNV GL certified portfolio provides ship and boat builders with optimal prepreg processing options.

HexPly M9 prepregs enable short cure cycles at 100˚C and above and provide a balance between ease of processing and mechanical performance. Available in high tack and medium tack variants, HexPly M9 prepregs are available with a wide range of unidirectional, woven, and multiaxial reinforcements. Partnered with Hexcel’s own HexTow® IMC2 and HexTow® HM54 / HM63 fibers, designers and engineers can optimize highly loaded composite structures such as masts, wing sails, and foils with increased glass transition temperatures (Tg) and excellent long-term fatigue performance.
 
Hexcel has completed the DNV GL certification for HexPly M9 in response to the rapidly increasing demand for type-approved high-performance prepreg materials for large composite structures in the commercial marine craft.  

Hexcel’s collaboration with Chantiers de l’Atlantique on its new Silenseas cruise ship concept – a concept that uses composite Solid Sail® propulsion as well as dual-fuel engines to reduce emissions and operating costs – is one such application. In this case, DNV GL type approval provides third-party assurance of the product’s quality, performance and consistency, and also helps to streamline the approval of composite parts that replace traditionally metallic structures.

Hexcel has supplied advanced composite materials to the marine industry for more than 40 years and manufactures a comprehensive range of DNV GL certified products including woven reinforcements, multiaxial fabrics, prepregs, and adhesive films. Hexcel is committed to developing new composite technologies for the marine sector, helping builders evolve their designs to produce lighter, more fuel-efficient, and a sustainable craft for the future.

“Our latest Type Approval Certification is an important part of our strategy to provide the most complete package of DNV GL certified composite materials for the marine sector,” said Andreas Sageder, Product Manager at Hexcel. “With the addition of our M9 prepreg resin systems, mast, ship, and boat builders have an expanded range of processing and cure options available for parts requiring higher Tg and improved fatigue performance.”

With the industrial use of solar energy, Lenzing sets new standards regarding decarbonization in the fiber industry.

The Lenzing Group plans Upper Austria’s largest ground-mounted photovoltaic plant on an area of around 55,000 m². The groundbreaking ceremony is scheduled to take place in summer 2021. After the expected commissioning in the second half of 2021, the plant's output will amount to 5.5 MWpeak. With approximately 16,000 modules, the plant will generate nearly 5,500 megawatt hours per year. This corresponds to the average annual electricity demand of more than 1,700 households and is unique in Upper Austria on this scale.

The photovoltaic plant is an important symbolic milestone for Lenzing on its way to becoming a CO2-neutral manufacturing site. This project is part of Lenzing’s global energy concept, which aims to provide electricity from 100 percent renewable sources in order to reduce CO2 intensity by 50 percent already in 2030 and to be globally climate neutral in 2050.

"The great challenges of our time need answers. As a leading company in innovation and sustainability, we are proactively contributing to the achievement of climate targets and setting new standards for our industry," explains Stefan Doboczky, CEO of the Lenzing Group. “In addition to ongoing major investments in CO2 neutral sites such as Thailand and Brazil, innovative projects at existing sites are bringing us one step closer to climate neutrality.”

Underwear and loungewear specialist MEY announces the launch of its product series "Zzzleepwear,” developed to improve the quality of sleep for men and women. Setting new standards in the sleepwear category, functionality and technical innovation are the focus of the product styles that also offer stylish looks and wearer comfort.

People who sleep well recharge their batteries and can start the next day full of energy. However, many people suffer from sleep problems that can have a long-term negative impact on health and well-being. MEY’s Zzzleepwear was built to address that.

„Zzzleepwear“ reflects far-infrared rays
Fabrics of the "Zzzleepwear" series are equipped with energear™ technology from schoeller®. They reflect the body's own energy, which is emitted in the form of far-infrared rays. The textile finish is based on a titanium-mineral matrix, which reflects far-infrared rays back to the body. This effect can have a positive impact on the body and its energy balance. The understanding of far infrared rays and their positive properties has its origin in Asian healing medicine. Far Eastern medicine has incorporated life energy, "Qi" in Chinese, for centuries. More and more people are discovering that their performance increases when energy balance and energy flow are in harmony. schoeller® is transferring this function to textiles, and MEY is using the finish for the first time in nightwear.

Further fabric properties and design features
For the new "Zzzleepwear" series, the energear™ coating is applied to the inside of the fabric in a honeycomb-like form. It thus represents the core of the series. In addition, the fabric with melange structure is made of natural cotton and thermoregulating fibers that provide high breathability. The large proportion of natural cotton fibers increases the wearing comfort of this special nightwear. The "Zzzleepwear" series offers different color variations, as well as outstanding design features like flat seams and an interior print in the neck area.

Podcast with soporific effect
MEY wants to lull its customers to sleep in a particularly original way: A Spotify code is printed on every item in the series. By scanning this code, customers can listen to a sleep podcast created especially for the selected pair of pyjamas. In the eleven-part good night story, the products tell their own manufacturing story, from the cotton field to the fabric production in Albstadt to the store – so boring, it will have customers nodding off in no time.

• Partnership offers customers access to full-scale garment design, manufacturing and packaging

Ascend Performance Materials has announced a commercial agreement with The S Group, a globally recognized provider of apparel design, development and manufacturing. The alliance will focus on commercialization of Acteev Protect™ antimicrobial yarns, fibers and fabrics, offering customers full-scale supply chain service from garment design to delivery.

The agreement pairs Ascend's world-class manufacturing operations with The S Group’s track record of success in the wholesale and direct-to-consumer apparel industry. “Our customers will now benefit from a revolutionary antimicrobial material combined with end-to-end support to guide a product from ideation to actualization,” said Lu Zhang, vice president of Acteev.

The S Group offers complete supply chain management for apparel brands, including product development, manufacturing, logistics, quality assurance, packaging and order fulfillment. The company lists some of the world’s most recognized brands among its partners, including Lululemon, New Balance and Mack Weldon. Athleisure, performance, scrubs, and seamless products such as intimates, leggings, active wear, socks and gaiters will be available.

Gary Peck, CEO of The S Group, says his team is excited about the commercial potential of Acteev, especially given the new reality of global health concerns. “Garment design has primarily focused on functionality, sustainability and comfort,” said Peck. “The past year has made us all aware that safety can be a valuable feature of fabrics as well, and Acteev checks all those boxes.”

Acteev is Ascend’s patent-pending technology that embeds zinc ions in a polymer to create fibers with long-lasting antimicrobial properties. The result is a fabric that destroys odor-causing bacteria and fungi. Acteev technology is available in a wide range of textiles featuring the flexibility, softness and durability of nylon 6,6.

Recent testing on knit fabric completed at the University of Cambridge has demonstrated that Acteev technology deactivates the virus that causes COVID-19, SARS-CoV-2, with 99.9% efficacy on contact1. Ascend is working with the U.S. Environmental Protection Agency, the U.S. Food and Drug Administration and other governmental agencies to obtain the appropriate regulatory clearances to make specific claims regarding the technology’s antiviral properties.

International technology Group ANDRITZ has signed an agreement with Laroche, based in Cours, France, to acquire LM Industries comprising Laroche SA and Miltec SA, France. ANDRITZ will take over all Laroche entities and their business worldwide. Closing of the transaction, which is subject to approval by the ANDRITZ Supervisory Board, is expected at the beginning of 2021.

Laroche is a leading supplier of fiber processing technologies such as opening, blending and dosing, airlay web forming, textile waste recycling and decortication of bast fibers. The product portfolio further complements the ANDRITZ Nonwoven product range. ANDRITZ is now able to offer the complete supply and value chain, from the raw material, to opening and blending, web forming, bonding, finishing, drying, and converting. Laroche’s high-performance technologies for opening and blending enhance the ANDRITZ scope of supply for spunlace, needlepunch and wetlaid production lines. Moreover, both companies have agreed to further strengthen the development of their existing technologies for high-speed and high-capacity applications and also to continue pursuing the development of textile recycling processes in order to stay ahead of the changes the industry is facing.

Laroche SA has been developing fiber processing technologies for more than 100 years. With integrated manufacturing, the company supplies lines for a wide range of industries/products: spinning, bedding and furniture, automotive, acoustic and thermal insulation, geotextiles, filtration, wipes, and many more.

Robert Laroche, President of Laroche: “This acquisition is the logical conclusion in view of the successful long-term relationship between ANDRITZ and Laroche. We have been working in close cooperation for more than ten years and are very much looking forward to becoming a member of the ANDRITZ family.”

Andreas Lukas, Senior Vice President and Division Manager, ANDRITZ Nonwoven: “By adding Laroche’s state-of-the-art products and expertise to our existing capabilities, ANDRITZ Nonwoven will further strengthen its market and technology position.”

Since the outbreak of the coronavirus pandemic, the worldwide demand for protective masks and apparel has resulted in a record number of new orders in the high double-digit millions of euros at Oerlikon Nonwoven. The meltblown technology from Neumünster is recognized by the market as being one of the technically most efficient methods for producing highly-separating filter media made from plastic fibers.

Protective equipment demands high-end nonwoven products
The rising demand for protective masks and other medical protective equipment since the start of the coronavirus pandemic and the associated global ramping up of production capacities has also resulted in an increase in the demand for nonwovens for the production thereof. Initially, this resulted in bottlenecks in the provision of meltblown filter nonwovens. To this end, there had until this point be very few producers of medical filter nonwovens outside China. Meanwhile, the demand for spunbond systems is also rising. “Due to the structure of our group, we are in the fortunate position to swiftly reallocate and free up our production capacities. This means that we are able to relatively quickly deliver not only meltblown systems, but also spunbond equipment”, explains Dr. Ingo Mählmann, Head of Sales & Marketing at Oerlikon Nonwoven, talking about the positive situation at the company.

The capacities for respiratory masks available in Europe to date are predominantly manufactured on Oerlikon Nonwoven systems. “Our machines and systems for manufacturing manmade fiber and nonwovens solutions enjoy an outstanding reputation throughout the world. Ever more manufacturers in the most diverse countries are hoping to become independent of imports”, comments Dr. Mählmann. The Oerlikon Nonwoven meltblown systems are being delivered to Germany, China, Turkey, United Kingdom, South Korea, Italy, France, North America and – for the very first time – to Australia until well into 2021.

Quality and efficiency in demand
Depending on the purpose of the application, medical PPE (personal protection equipment) should be breathable and comfortable to wear, protect medical staff against viruses, bacteria and other harmful substances and form a barrier against liquids. For these reasons, they are often made of either pure spunbond or of spunbond-meltblown combinations. Here, the meltblown nonwoven core assumes the barrier or filter task, while the spunbond has to retain its shape, while being tear-resistant, abrasion-proof, absorbent, particularly flame-resistant and nevertheless extremely soft on the skin.

All masks are not created equal – thanks to the ecuTEC+
Protection against infections such as coronavirus can only be guaranteed with the right quality.

The nonwovens can be electrostatically-charged in order to further improve the filter performance without additionally increasing breathing resistance. Here, Oerlikon Nonwovenʼs patented ecuTEC+ electro-charging unit excels in terms of its extreme flexibility. Nonwovens manufacturers can freely choose between numerous variation options and set the optimal charging method and intensity for their specific applications. In this way, even the smallest particles are still attracted and reliable separated by a relatively open-pored nonwoven. Nevertheless, mask wearers are still able to easily breathe in and out due to the comparatively loose formation of the fibers. To this end, it comes as no surprise that all meltblown systems currently destined for the production of mask nonwovens are equipped with the ecuTEC+ unit.

• Carbon fibers combined with injection molding replace conventional steel construction
• SGL Carbon supplies innovative carbon fiber profiles
• Serial use in a future high-volume model of BMW Group
• Construction method offers great potential for use in other automotive projects

Already in August, SGL Carbon received a multi-year order from Koller Kunststofftechnik GmbH for the production of novel carbon fiber profiles for serial use in windshields for a future high-volume model of BMW Group.

The profiles are particularly flexible fiber tows, pre-impregnated with thermoplastic resin in various dimensions. They will be compiled by SGL Carbon on the basis of its own 50k carbon fiber at its site in Innkreis, Austria, and subsequently processed by the injection molding experts at Koller to form a skeletal plastic component. The composite component will replace the previous steel-based windshield. Production of the carbon fiber profiles will start in the remainder of 2020 and will then be ramped up gradually over the next few years for the BMW Group model launch.

In the vehicle, the windshield is a connecting element between the roof frames and thus has an important stabilizing function. The carbon fiber profiles add the required stiffness and crash safety to the component. At the same time, they help to significantly reduce the weight of the roof and thus also support the driving dynamics. The injection molding process also enables particularly complex and material-efficient structures. In the BMW Group model, this innovative component concept will cut weight by 40 percent compared to conventional steel designs of the component while creating important space for cable ducts and sensors.

The production of the carbon fiber profiles themselves is also particularly geared to material and process efficiency in large-scale production. The profiles consist of several smaller fiber strands, the so-called rods, and are manufactured using the modern continuous pultrusion process. During product and process development it was one key objective to ensure that material loss during production is almost completely avoided.

"At SGL Carbon, we have been working on the development of thermoplastic carbon fiber profiles for use in injection molding for some time already. This development work is now beginning to pay off. Due to the many advantages and competitive costs, we see a great potential for the technology to be used in other automotive projects too," explains Sebastian Grasser, Head of the Automotive Segment in the Business Unit Composites - Fibers & Materials at SGL Carbon.

"Innovative lightweight construction with hybrid designs has developed into a strategically conclusive concept for Koller Group's OEM customers," confirms Max Koller, CEO of Koller Group. "SGL Carbon's high level of material expertise, combined with the process know-how of KOLLER Kunststofftechnik and KOLLER Formenbau, create the basis for a promising future in innovative lightweight construction technologies. With this order, the BMW Group has confirmed its confidence in the successful cooperation between SGL and Koller; we are particularly pleased about this", said Max Koller.
 
The Koller Group is a globally operating technology company with plants in Europe and China, as well as NAFTA. The Koller Group develops and manufactures lightweight construction, tools and serial components, primarily for the automotive industry.

The Lenzing Group scored a total of 30.5 points (4 points more compared to last year) and received for the first time a leading dark green shirt, the highest Hot Button ranking category. Lenzing once again convinced the non-profit organization Canopy with its innovative vision with regard to circular economy and REFIBRA™ technology, its high level of transparency in wood and pulp sourcing, as well as its active contribution towards protecting forests and preserving biodiversity.

In this widely recognized ranking, Canopy grades the world’s 31 largest producers of wood-based fibers with respect to their sustainable wood and pulp sourcing, their efforts with regard to using alternative non-wood feedstock and their achievements for lasting conservation in critical forests round the globe.

Leading in sustainable sourcing with a decade-long clean record
Wood and pulp are the most important raw materials for Lenzing’s sustainable production of cellulosic fibers. The Lenzing Group is particularly proud of its decade-long clean record of sustainable wood sourcing, evidenced by its long-standing credible commitment to wood certification, which Lenzing pioneered already in the 1990s. Lenzing’s commercial wood sources are  100 percent either certified by FSC® or PEFC™, or controlled in line with FSC® standards.

Social impact and afforestation project in Albania
At the backdrop of Lenzing’s long history of clean sourcing, the company is even more aware that the global forests are seriously threatened by illegal logging and deforestation but also by the consequences of climate change. This is why Lenzing – in addition to supporting a number of Canopy’s conservation projects – has set up a social impact and afforestation project in Albania (Southern Europe).*

Special focus on sustainable plantations in Brazil
For its latest investment in a pulp mill in Brazil, Lenzing actively collaborates with Canopy to ensure that the wood sourcing is in line with sustainable practices. The plant will be among the highest productive and energy-efficient facilities in the world and will feed the 40 percent excess bioelectricity generated on site as “green energy” into the public grid.*

REFIBRA™ technology: Commercially available since 2017
As a long-standing player in the industry, Lenzing has undertaken extensive research into many different alternative non-wood cellulose sources such as annual plants, like hemp, straw, and bamboo. Until now, textile waste has turned out to be the most promising alternative feedstock for scaled commercial use.
Lenzing’s lyocell fiber produced with the breakthrough REFIBRA™ technology (Eco Cycle technology for nonwoven applications) uses textile waste as part of the feedstock and is an important step towards a circular economy.*

50 percent recycled content by 2024
It is Lenzing’s vision to make textile waste recycling a common standard process like paper recycling and to offer fibers produced with REFIBRA™ technology with up to 50 percent recycled content from post-consumer waste by 2024.

*Please read attached document for more information

• New level of transparency in the textile industry
• Building on several successful pilot projects with TextileGenesis™, the digital platform for the traceability across the textile supply chain has now been introduced.

The Lenzing Group, a leading company in the area of wood-based specialty fibers, celebrates another milestone on the way to making the textile and apparel industry more sustainable and transparent. Since 2019, Lenzing has been using the blockchain technology powered by the Hong Kong start-up TextileGenesis™ to ensure the traceability of textiles from fiber to production and distribution. After several successful pilot projects, the digital platform was launched on 5 November for TENCEL™ and LENZING™ ECOVERO™ branded fibers. The platform provides customers and partners as well as consumers with an overview across the entire textile supply chain.

With the COVID-19 pandemic, more changes have been brought to the already transforming fashion and textile industries. To date, supply chain traceability has become a top priority for apparel and home brands. With the blockchain-enabled supply chain traceability platform powered by TextileGenesis™, Lenzing supports the entire supply chain in meeting the increasing demand for transparency and sustainability.

Phased onboarding and new digital certificates

A follow-up of a 12-month pilot program and field trials with four leading sustainable brands (H&M, ArmedAngels, Mara Hoffman and Chicks) and supply chain players from 10 countries in three regions, the global roll-out of Lenzing’s blockchain-enabled supply chain traceability platform will be conducted in phases. During the first phase, Lenzing’s supply chain partners based in South Asia (India, Bangladesh, Pakistan and Sri Lanka) will complete the onboarding process within Q4 2020. An estimated 300+ supply chain partners in China and Turkey will also join the program in Q1 2021. It is estimated that by Q2 2021,  most eligible Lenzing supply chain partners will be onboarded into the platform, ensuring full supply chain traceability.

One of the core components of the platform powered by TextileGenesis™ is integration with the Lenzing EBranding fabric certification system, which allows brands and retailers not only to access the full supply chain traceability for TENCELTM and LENZINGTM ECOVEROTM branded fibers but also to view the results of forensic (physical) verification of fabric samples via the digitally signed Lenzing E-Branding fabric certificates. “

Over the past year, during the pilot program and field trials we have been receiving very positive feedback from brands and supply chain partners. Our brand partners have also been encouraging us to accelerate the global roll-out for traceability of Lenzing fibers. With this new system and the integration with Lenzing E-Branding fabric certificates, the entire Lenzing ecosystem will create an unprecedented level of transparency. This will provide consumers with the most sustainable and climate-friendly clothing and home textile products that are made of TENCEL™ or LENZING™ ECOVERO™ branded fibers”, says Robert van de Kerkhof, Chief Commercial Officer and Member of the Board at Lenzing.

“With increasing compliance and reputational risks, CEOs and Boards of top 100 fashion brands have committed to using 100% sustainable and traceable fibers over the next 5 years, with transparency being a core part of business priorities. Sustainability and traceability are two sides of the same coin, and it’s great to see Lenzing paving the way for the entire fashion industry to follow. Our supply chain traceability platform will create digital accounting for Lenzing’s innovative and sustainable fibers across the entire supply chain using Fibercoins™ traceability technology”, says Amit Gautam, Chief Executive Officer and Founder of TextileGenesis™.

Fibercoin™ technology to ensure traceability across supply chain

Through using the innovative Fibercoin™ technology of the TextileGenesis™ platform, Lenzing and other brand
partners are now able to issue digital tokens (blockchain assets) in direct proportion to the physical shipments of TENCEL™ and LENZING™ ECOVERO™ branded fibers. These digital tokens provide a unique “fingerprint” and authentication mechanism, preventing adulteration, providing a more secure, trustworthy, digital chain-of custody across the entire textile supply chain, and most importantly, ensuring the materials are sustainably produced.

An impairment charge has become necessary based on the current status of the new 5 year plan.

(Market Abuse Regulation N° 596/2014)
•    Impairment loss amounting to €80-100 million in the fourth quarter 2020 in the business unit CFM
•    Restructuring program resolved with savings target of more than €100 million until 2023
•    Guidance 2020 for Group sales and operating recurring Group EBIT confirmed
•    Guidance 2020 for net result reduced to minus €130-150 million

In the current status of the 5 year plan, which is at present under preparation, significant deviations have already become apparent today, particularly in the market segments Automotive, Aerospace and Wind Energy in the business unit Composites – Fibers & Materials (CFM). Partially also due to the pandemic, Automotive and Aerospace is developing slower than anticipated in the last 5 year plan. In contrast, business with Wind Energy is growing much stronger than previously planned. These changes in the product mix lead to lower mid-term earnings at CFM compared to the prior 5 year plan. Following these deviations from the last 5 year plan, an event-driven impairment test was undertaken. This results in a non-cash impairment charge amounting to €80-100 million, which will be recorded in the fourth quarter 2020.

The Board of Management of SGL Carbon SE today also resolved the implementation of a restructuring program, with which the Company is targeting savings of more than €100 million until 2023 (compared to the base year 2019). These savings consist of a planned socially compatible reduction in personnel of more than 500 employees and substantial reduction in indirect spend, particularly in the areas of travel, consulting and external services. Costs of approximately €40 million are anticipated for the implementation of this restructuring program. A little more than half of this is expected to be recorded as expenses in the fourth quarter 2020, while the associated cash outflows are mainly forecasted for 2021.

This requires a partial adjustment of the guidance for 2020. The solid operational development in the third quarter 2020 with Group sales between €220 and €230 million and operating recurring EBIT1 between €13 and €15 million (plus approximately €9 million positive one-time effects) is within the framework of our expectations for the full year 2020. However, the Group net result is likely to develop below the prior year level of minus €90 million and reach approximately between minus €130 and €150 million due to the restructuring provisions as well as the impairment charge (prior guidance: improvement to a negative low double-digit million € amount).

With liquidity of €167 million as of September 30, 2020 (compared to €137 million at year-end 2019) and further cash inflows in the fourth quarter 2020 from successfully implemented additional funding measures, the Company’s position is solid. This liquidity is more than sufficient for the payment of the purchase price for SGL Composites USA in the amount of USD 62 million at the end of 2020 as well as the restructuring-related cash outflows expected mainly in 2021. The Company continues to have access to the revolving credit facility (RCF) in the amount of €175 million, which remains undrawn.

The quarterly statement as of September 30, 2020 will be published on November 12, 2020 as scheduled. Further details on the new 5 year plan as well as the guidance on the fiscal year 2021 will be presented with the publication of the Annual Report 2020 on March 25, 2021.

*The use of KPIs in this notification is aligned to the annual report 2019 and the interim report for the first half year 2020. There were no changes to the scope of consolidation or to valuation methods compared to the previous guidance.