From the Sector

For more than 50 years, vehicle manufacturers have relied within their model development on Autoneum’s measuring systems for vehicle acoustics. With ATLAS, Autoneum has now added another particularly powerful device to the portfolio: Thanks to the efficient and reliable measurement methodology, noise-reducing vehicle components and materials can be analyzed and developed faster and with a significantly lower need for resources in the future.

With the ongoing electrification of vehicles and trends like autonomous driving, future car generations will no longer be used solely for transport – remote working and recreation will equally play a key role. This requires a vehicle interior that is as noiseless as possible. In order to identify and insulate potential internal and external sound sources already in the pre-development of new models, car manufacturers around the world rely on Autoneum’s highly specialized measurement tools. The newly launched ATLAS – short for “Airborne Transmission Loss Analysis System” – measures the acoustic insulation and transmission loss of components such as carpets, inner dashes and floor insulators. This allows customers to assess noise-reducing parts within minutes and select acoustic components tailored to their needs.

ATLAS sets new testing standards in this regard. While developers previously had to analyze the NVH behavior (noise, vibration, harshness) of interior parts using material samples of around one square meter in size, ATLAS makes this process faster, cheaper and more environmentally-friendly. It enables measurements of small samples with a diameter of no more than ten centimeters, which substantially decreases the amount of material used. Thanks to its four highly sensitive microphones, only two trials are required to collect precise and valid test data, making the system developed at Autoneum’s research center in the Swiss city of Winterthur especially suitable for quality assurance and repeatability of the results obtained. Users also benefit from time savings of up to 50 percent compared to the previous testing standard.

Autoneum’s measurement systems represent the global industry standard and are used successfully by vehicle manufacturers, automotive suppliers and research institutions alike. The Company is therefore not only making a significant contribution to the mobility of the future with its noise-reducing products, but now with ATLAS as well.

August, 18 2020 Rieter has placed a bond of CHF 75 million with a term of four years and a coupon of 1.55%. This serves to partially refinance the existing bond of CHF 100 million, which is due on September 29, 2020. The bond was issued by Commerzbank. The bond will be listed on the SIX Swiss Exchange.

The coronavirus pandemic and its massive impact on the automotive industry led to an un-precedented market slump in the first half of 2020 and a corresponding revenue decline at Autoneum. Revenue in local currencies fell by –32.7% compared to the prior-year period, and in Swiss francs by –36.8% to CHF 730.6 million. The turnaround program for the North American sites made further progress in the first six months and is showing the targeted results. However, they were clearly overcompensated by the massive impact of the corona-virus crisis, which led to a negative net result of CHF –54.9 million despite comprehensive cost flexibilization measures.

Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production completely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

 Like the entire automobile industry, Autoneum was massively impacted by the effects of the corona-virus pandemic in the first half of the year. The temporary plant closures at almost all customers in every region, especially in the second quarter of the year, not only led to an unprecedented market collapse, but also to a production stop at all 55 Autoneum sites. Starting in February in China and one month later in all other regions, vehicle manufacturers temporarily shut down production com-pletely. The corresponding massive drop in global vehicle production led to a slump in revenue at Autoneum of –32.7% in local currencies. This reflects the development of the market in the first half of 2020, which contracted by –33.2% year-on-year. Revenue in Swiss francs at Autoneum fell by –36.8% to CHF 730.6 million (prior-year period: CHF 1 156.1 million). Revenue development in all Business Groups outperformed the respective markets, particularly in Asia and the SAMEA (South America, Middle East and Africa) region.

Autoneum promptly responded to the pandemic-related market slump by adopting extensive cost-cutting measures in all regions. These include the reduction of employee costs by, among other things, adjusting time accounts, introducing short-time work at eligible locations and temporary layoffs as well as headcount reduction, mainly among temporary workers. In addition, operating expenditures were limited to the absolutely necessary. The investment volume for 2020, already reduced from previous years, was downsized even further. Autoneum continues to benefit in this regard from the high level of investments undertaken in recent years.

 Although the coronavirus crisis and the measures taken to contain it dominated Autoneum’s course of business in the first half of 2020, the Company achieved necessary operational and financial im-provements during this period. The comprehensive turnaround program for the North American sites made further progress and is on track. Efficiency improvements already achieved there had a posi-tive effect on the figures of the first half-year, but were significantly overcompensated by the substan-tial impact of the COVID-19 crisis. Savings and cost flexibilization measures taken immediately and implemented worldwide in view of the revenue loss could not offset the ongoing, capacity-related fixed costs. This led at the Group level to a negative EBIT of CHF –31.8 million (prior-year period: CHF 16.4 million), which equates to an EBIT margin of –4.4% (prior-year period: 1.4%). The net result decreased because of the severe revenue shortfall to CHF –54.9 million (prior-year period: CHF –6.0 million).

Outlook
For 2020 Autoneum expects revenue to develop at market level. Although customers’ production volumes should increase again in the second half of 2020 compared with the first semester, latest fore-casts indicate that they will remain clearly below the level of the second half of 2019. Immediately implemented and ongoing cost reduction measures as well as further operational optimizations also within the turnaround program in North America will lead to improvements in the second half of the year. Due to the current uncertainties, a reliable statement on the net result for the full year 2020 thus cannot be made. With regard to the mid-term targets, a recovery of the profitability level is expected, but it will largely depend on the market development.

• Bestellungseingang mit 250.7 Mio. CHF um 34% unter Vorjahr
• Umsatz mit 254.9 Mio. CHF um 39% unter dem ersten Halbjahr 2019
• EBIT von -55.0 Mio. CHF, vor Restrukturierungsaufwendungen von -46.9 Mio. CHF
• Umsetzung COVID-Krisenmanagement und Restrukturierungen plangemäß
• Stärkeres zweites Halbjahr 2020 erwartet

COVID-19 hat das Rieter-Geschäft im ersten Halbjahr 2020 stark beeinträchtigt und zu einer Marktsituation geführt, in der die Nachfrage in allen drei Geschäftsbereiche stark zurückgegangen ist. Der Geschäftsbereich Machines & Systems ist von der Verschiebung von Investitionen und Auslieferungen durch Kunden betroffen. Gleichzeitig ging die Nachfrage nach Verschleiß- und Ersatzteilen sehr deutlich zurück, da weltweit die Produktion in vielen Spinnereien ausgesetzt wurde. Dies schlägt sich in niedrigen Auftragseingängen und Umsätzen der Geschäftsbereiche Components und After Sales nieder. So führte diese außergewöhnliche Marktlage im ersten Halbjahr 2020 zu Verlusten in allen drei Geschäftsbereichen.

Der Rieter-Konzern verbuchte einen Bestellungseingang von 250.7 Mio. CHF. Dies entspricht einem Rückgang von 34% (1. Halbjahr 2019: 378.3 Mio. CHF). Der Bestellungseingang im Geschäftsbereich Machines & Systems ging um 34% zurück, im Geschäftsbereich Components sank er ebenfalls um 34% und im Geschäftsbereich After Sales um 32%. Der Bestellungsbestand per 30. Juni 2020 betrug rund 490 Mio. CHF (30. Juni 2019: 295 Mio. CHF). Die Stornierungen lagen unter 5%.

Der Umsatz erreichte 254.9 Mio. CHF (1. Halbjahr 2019: 416.1 Mio. CHF), was einem Rückgang von rund 39% gegenüber der Vorjahresperiode entspricht. Bei Machines & Systems ging der Umsatz wegen des niedrigen Bestellungseingangs in den ersten drei Quartalen des Vorjahres und verschobener Lieferungen um 46% zurück. Der Umsatz bei Components sank um 29% und der Umsatz von After Sales um 34%.
Mit Ausnahme der Türkei war der Umsatz in allen Regionen von der COVID-19-Pandemie gekennzeichnet. In Indien fiel der Umsatz im Vergleich mit dem ersten Halbjahr 2019 wegen des Lockdowns um 73% auf 17.7 Mio. CHF. In den asiatischen Ländern, in China sowie in Nord- und Südamerika sanken die Umsätze zwischen 44% und 49% verglichen mit dem ersten Halbjahr 2019. In Afrika ging der Umsatz um 20% zurück. Europa lag leicht über Vorjahresniveau. Die Türkei verbesserte sich signifikant von einem sehr niedrigen Niveau im Vorjahr (1. Halbjahr 2019: 24.5 Mio. CHF) auf 51.1 Mio. CHF im ersten Halbjahr 2020. Dieser Aufschwung steht auch im Zusammenhang mit den Innovationen, die Rieter auf der ITMA in Barcelona im Juni 2019 präsentierte.

Im Juni 2020 registrierte das Unternehmen Anzeichen einer Markterholung. Rieter beobachtet die Kapazitätsauslastung von mehr als 600 Spinnereien weltweit. Anfang April 2020 lag der Anteil produzierender Spinnereien bei rund 40%. Ende Juni 2020 verbesserte sich dieser Anteil auf ein Niveau von rund 80%.

• Specialised in dye-sublimation printing, the Italian company has conquered the heights of the high fashion sector with its top-quality printed fabrics.
• With its recent investment in a direct-to-fabric printing line, Digitak is preparing to expand its range of printed products, focusing on fabric differentiation.

Dye sublimation printing of high fashion designs is the beating heart of Digitak, an Italian company specialised in digital textile printing. Operating in the textile district of Lombardy, Italy, the company has established itself among the main suppliers in the world of high fashion and sportswear in just under 15 years.

Making production versatility one of the cornerstones of its philosophy, Digitak has continued to invest in technology, as well as research and development its product portfolio. This forward-thinking approach has enabled the company to guarantee innovative, personalised products with meticulous attention to detail, with the highest – almost obsessive – standards of quality and maximum design flexibility. Over the years, the extensive experience gained by the company’s management in the field of sublimation with traditional and digital techniques, combined with their investment decisions have allowed Digitak to enhance its production performance, gradually implementing higher quality standards and differentiating itself from the competition in the complex and competitive sector of high fashion. An important feat, which has not, however, dampened its enthusiasm and willingness to continue growing and exceeding its goals. The company’s latest investment in a direct-to-fabric digital printing line with pigment ink propels the company into a new and promising production dimension.

Sublimation printing specialists

Since Digitak’s establishment, Filippo Taccani, the founder and current owner of the company, had set himself a clear and ambitious objective: “I wanted to take up the challenge of operating digitally - printing fabrics using this innovative technology to create products on a par with those  I had achieved with traditional sublimation textile printing methods during my previous work experience.”

The purchase of a Mimaki JV4 plotter, one of the first to be installed in Italy, marked the beginning of Digitak’s adventure. “To start the business, I needed a printing system that could operate with dispersed inks to print on polyester and I found the JV4 to be the best option,” explains Taccani. “It was an excellent decision, because I used these plotters to build the company and its success.”

The first Mimaki plotter was in fact followed by a second and a third. When it bought the fifth, the company moved to an industrial unit in Tradate (Varese) – Digitak’s current site – which now houses around fifteen Mimaki JV33 plotters, in addition to three Mimaki TS500-1800 wide-format sublimation printers, and a Mimaki TS300P-1800 high-speed sublimation printer. This Mimaki powered production facility – which is one of the company’s core strengths – was recently expanded with the addition of a Mimaki TX300P-1800B belt-type hybrid printing system, together with a Mimaki TR300-1850C textile coater and a Mimaki Tiger-1800.

“Naturally, over the years, we have also tested printing systems from other suppliers, but we have always returned to Mimaki. With high fashion as our key market, we need to guarantee our customers the highest levels of quality and, to date, we have never found solutions that beat the quality of this Japanese brand’s technology.”

According to Taccani, the difference lies in the “calligraphy” of Mimaki’s machines, that is the line of the ink on the fabric: “Unlike its competitors, Mimaki has focused on the ‘waveforms’, i.e. the electronics associated with the print heads. This attention paid to the way the ink jet is managed from the print head has allowed Mimaki to achieve unparalleled levels of accuracy, an aspect that has given my company a clear competitive edge.”

Moreover, at Digitak, quality comes before quantity: “We prefer to dedicate an extra day to production to guarantee the customer a final product that fully meets requirements and expectations. Mimaki’s technology not only suits this business model bult on top quality, but it crucially enables it.”

Operational and creative flexibility

Digitak currently prints around 2,000 linear metres of fabric per day. Its portfolio ranges from clothing and scarves, to beach and swimwear, with related personalised accessories, to sportswear, with technical properties such as breathability, comfort, resistance to external agents. The company have even added customised outdoor furniture to their offering of diverse and creative products.
The company’s machines operate continuously, 24/7. During the day, the machines are mainly used to develop and produce samples and colour proofs, while the actual production is carried out at night. “Thanks to our technology, we have developed an extraordinary operational flexibility. The fact that we have so many plotters allows us to work on multiple designs at the same time and to launch projects that are also very different from one another,” explains Taccani. “There are also some other crucial factors that have contributed, and continue to contribute, to increasing our production efficiency. The reliability of Mimaki’s solutions and the remote monitoring option offered is key. Once the standard start-up monitoring has been carried out and the machines are found to be printing correctly, we can let them work overnight without an operator. This is a great benefit for people who, like us, manage such a large and diverse fleet of machines.”

Digitak takes the same approach to customer service. Faced with an increasingly demanding market in terms of creativity, precision and completeness of service, the company wants to guarantee flexibility and customisation. “We decided to set up a department dedicated to the pre-press stage, in charge of preparing and checking the files supplied by customers. Seldom do our teams not need to do some editing of the files supplied, even if it’s only to make small changes that are essential for the print document to be as suitable as possible and to achieve the best final result.”

Technologies of the future

With a view to further enhancing production and customer service, Taccani has chosen to take on a new challenge, switching things up with some of the most recent investments.

While maintaining the focus on dye sublimation printing, Taccani has focused on technological diversification by installing a direct-to-fabric digital printing line. This consists of a Mimaki TX300P-1800B printing system with pigment inks and a TR300-1850C coater from Mimaki’s TR series. “The market continues to evolve and now requires even more flexibility regarding both processes and the fabrics supplied. This means that great opportunities exist for a print shop capable of simultaneously producing the same design – with minimal colour adjustment – on different fabrics, guaranteeing similar and accurate results. And this is precisely the path we are taking,” says Taccani. “Why have we opted for Mimaki again? Well, I had an opportunity to try out their new pigment inks and I immediately realised that they are a generation ahead of the other pigments available on the market. The cyan is very clean, the black is deep and there is a very interesting fullness of colour, suitable not only for furnishings, but also for other applications in the clothing sector.”

With its pigment inks, the new direct-to-fabric printing line allows Digitak to explore other related market segments. Thanks to the innovative automatic belt system, the TX300P-1800B guarantees good productivity and high-quality results. A standard of quality that is also boosted by the TR300-1850C fabric pre-treatment system: “This coater is essential for ensuring the best possible preparation of fabrics for printing. In fact, we are able to treat fabrics to make them suitable for the type of print they are intended for, sanitise them for specific applications and, in some cases, even dye them, with excellent quality.”

According to Taccani, another beneficial factor of direct-to-fabric pigment printing technology is the eco-sustainability of the process and its lower environmental impact. “We are proud to be able to offer our customers excellent printing results using little water and printing in ‘green mode’, with both the technologies we have available. I consider them winning technologies for the future, as both dye sublimation printing and direct-to-fabric printing with pigment inks use little water while mainly requiring the use of energy. Therefore, if you use renewable energy, then you’re done.”

Digitak’s other trump card is the Tiger-1800 installed in 2019. With this industrial printing system, the company aims to increase production volumes while maintaining its high-quality standards and further optimising costs. “We are excited to have these promising technologies available to us in-house. We are currently experimenting with these solutions, testing new opportunities and evaluating which paths to take to stay ahead of the game,” concludes Taccani.

Technologies with an excellent environmental performance throughout the entire product life cycle – that is what “Autoneum Pure.” stands for. In future, components that meet the highest standards in terms of sustainability and eco-friendliness can be identified at a glance under this label. This also includes the innovation “Mono-Liner” for wheelhouse outer liners.

As innovation leader in acoustic and thermal management, Autoneum continuously invests in the development and production of resource-saving components that make cars lighter and thus more climate-friendly. In view of an increasing sustainability awareness and the correspondingly greater information needs on environmentally-friendly vehicle components, the Company has now launched Autoneum Pure. The label determines particularly sustainable technologies, thereby guiding car manufacturers in product selection for future models.

Autoneum Pure is based on a comprehensive set of criteria assessing the sustainability performance of a product in all four phases of its life cycle: material procurement, production, use and end of life. For example, components with a high content of recyclable materials or those that achieve significant weight savings compared to comparable standard components qualify for the “Autoneum Pure.” label. Autoneum already offers various multifunctional technologies that meet the high standards for Autoneum Pure products: Ultra-Silent for underbody systems or battery undercovers, Di-Light for carpet systems, Prime-Light and IFP-R2 for inner dashes and floor insulators as well as Hybrid-Acoustics PET for e-motor encapsulations and engine-mounted parts, which was launched in fall 2019.

With Mono-Liner, the latest innovation for wheelhouse outer liners is also included in the Autoneum Pure portfolio. Among other things, the Mono-Liner-based components convince thanks to their lightweight construction, thereby contributing to lower vehicle weight with correspondingly less fuel consumption and emissions. The excellent life cycle assessment is also based on their particularly resource-saving manufacturing: Production cut offs of the components, which consist to a large extent of recycled PET fibers, can be processed into pellets and completely returned to the manufacturing process as fibers. An SUV and a crossover model from a US vehicle manufacturer already benefit from Mono-Liner wheelhouse outer liners.

Anahid Rickmann, Head of Corporate Communications & Responsibility, explains: “With Autoneum Pure we are the first automotive supplier to establish a sustainability label in the field of acoustic and thermal management. Autoneum Pure is part of the Company's Advance Sustainability  Strategy 2025 and sets industry standards in product communication.”

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.

• Fiber prices and demand under pressure due to COVID-19 crisis
• Measures to maintain operations and to protect employees, customers and suppliers implemented successfully
• Hygiene competence center established to produce personal protective equipment in the fight against COVID-19 pandemic
• Strategic investment projects in Brazil and Thailand progressing according to plan
• Management Board proposes not to distribute a dividend for 2019 – AGM rescheduled for June 18, 2020

In a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis, the Lenzing Group held its ground well in the first quarter of 2020. Thanks to a diversified business model and its global footprint on the one hand, and the disciplined implementation of the sCore TEN corporate strategy on the other, the effect on the revenue and earnings development was partially offset.

In the first quarter of 2020, revenue declined by 16.7 percent in comparison with the prior-year quarter and amounted to EUR 466.3 mn. The main reason was the development of prices for standard viscose (due to significant overcapacity in the market) and other standard fibers. The impact of the COVID-19 crisis further increased pressure on prices and volumes. The prices for standard viscose dropped to a new all-time low of 9,150 RMB/ton by March 31 – up to 33 percent lower than in the prior-year quarter. The comparatively positive development of the specialty fiber business and slightly higher demand for fibers in the medical and hygiene segments partially offset the decline in revenue. The share of specialty fibers increased from 47.3 percent in the first quarter of the previous year to 60.9 percent. The earnings development reflects the decline in revenue: EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 24.3 percent to EUR 69.6 mn. The EBITDA margin declined from 16.4 percent to 14.9 percent. Net profit for the period was down 58.6 percent to EUR 17.7 mn. Earnings per share amounted to EUR 0.84 compared with EUR 1.65 in the first quarter of the previous year.

• Expanding global textile and polymer business

SANITIZED AG announces that it has entered into an agreement with Consolidated Pathways Inc. Midland, Michigan USA to globally promote the Sanitized® odor-management, hygiene function and material protection technologies to brands and retailers. Consolidated Pathways will also support the advancement of the trusted Sanitized® Quality Seal and related branding concepts. The longtime co-operation between SANITIZED AG and ARCHROMA remains unchanged and is supported by the activities of Consolidated Pathways.

Consolidated Pathways acts as global brand and technical representative for the Sanitized® line of antimicrobial products. Consolidated Pathways will be focusing on commercializing Sanitized® products in textiles and will use its broad experience in polymer-based antimicrobials to extend the reach of the unique technologies that SANITIZED AG offers.

Consolidated Pathways, Inc is based in Midland, Michigan USA. The Principals of Consolidated Pathways have over two decades of experience with commercializing polymer-based antimicrobials and sustainable surface modification technologies.

• New human-machine interface brings smart features to tissue operations

Paper Converting Machine Company (PCMC), part of Barry-Wehmiller, has launched Smart TOUCH HMI, a new human-machine interface available on Forte tissue converting lines.

Following high-performance design principles, PCMC’s Smart TOUCH HMI offers users a clean, modern interface and enhanced help features. The smart analytic capabilities are aimed at providing customer insights to improve overall equipment effectiveness. The Smart TOUCH HMI works much like today’s mobile devices with swipe functionality, enabling a short learning curve and increased productivity.

“We designed our new HMI with operators in mind,” said Jason Hilsberg, PCMC Tissue Sales Director. “PCMC is always working to improve the capabilities and features of our machines for our customers, and more specifically, to enhance the experience of the operators. With simplified controls and navigation, robust help functions and easy recipe management, this new design will provide operators with a more efficient process to keep tissue operations running quickly and smoothly.”