From the Sector

• Clean Green Certified Companies Commemorate Earth Day 2018

U.S. Clean Green certified laundries are marking Earth Day 2018 (April 22) by commending the 250,000+ businesses across the nation that use such certified operations for linen, uniform and facility services.

Selecting a Clean Green certified company reflects concern for maximizing sustainability in a business supply chain. Private- and public-sector organizations who choose such a provider are learning that how their reusable textiles are supplied, laundered and maintained is a factor in their environmental impact.
Clean Green operations use a third party (TRSA) to verify their conservation practices and quantify their compliance with water and energy use thresholds.

Laundered, reusable linens, uniforms, towels, mats and other products provided by the linen, uniform and facility services industry to enhance businesses’ image and provide clean, safe environments for their employees and patrons. Most Americans benefit from the industry at least once per week, either at work or by patronizing restaurants, healthcare facilities, hotels and other retail and service establishments.

Nearly 50 of the industry’s companies are Clean Green certified, serving business customers from more than 150 locations combined nationwide. These launderers work with customers to connect the certification to their efforts to minimize their carbon footprint. Certified operators report to TRSA that customers and prospects ask them about green laundry initiatives. These include environmentally friendly wash chemistry, water reuse and recycling, recapturing heat from hot water headed down the drain and operating efficient delivery routes.

“They are far more likely to inquire about the sum of environmentally friendly practices as opposed to the parts,” observes TRSA President and CEO Joseph Ricci of the industry’s customers. Many document their justification of purchase decisions, though, such as government agencies that profile the winners of contract bids. “Clean Green companies bidding for their work mention the certification in their sales promotion and these profiles reflect it.”

Linen and uniform services conserve water and energy best by using high-capacity, high-efficiency equipment, he pointed out, controlling expenses and thereby aiding efforts to keep service pricing under control. “It is the perfect sustainable business model. Business interests and environmental concerns align. Improving efficiencies reduces costs and reduces the impact on the environment,” Ricci says.

Based on the U.S. Census of the industry’s sales and a TRSA survey of member financial data, the association estimates that nearly 3 million businesses use the industry’s services. Clean Green companies are challenged to capture more of these industry customers. Their collective Earth Day 2018 campaign gives them an opportunity to highlight the extent to which their individual efficiencies have contributed to a nationwide movement. Publicizing their own gains around Earth Day can better qualify and quantify their environmental virtues to encourage detailed comparison with competitors’ efficiencies, Ricci noted.

On Thursday, March 22nd, C.L.A.S.S., with support from the Council of Fashion Designers of America (CFDA), will invite fashion’s industry leaders, designers and members of the press to celebrate An Evening of Smart Innovation.  An exceptional team of artists, filmmakers, food and textile designers have created an immersive experience that will engage the guests’ senses highlighting that smart innovation is the new standard for fashion. The experience will examine the four key areas that are vital to C.L.A.S.S.’s business philosophy: Heritage - Smart Innovation - Circular Economy - Design Responsibility. The commitment to those principles and to forward thinking led to C.L.A.S.S. having been nominated as one of the European Business Awards 2017/2018 Ones to Watch for exceptional growth, significant innovation along with an ethical approach to business.

The March 22nd date is a deliberate choice as it marks International Water Day and serves as a way to advocate for sustainable water management, a key issue in textile manufacturing. Many of C.L.A.S.S.’s partners, such as ECOTEC® by Marchi&Fildi, Bemberg™ and ROICA™ by Asahi Kasei and TINTEX Textiles use technological breakthroughs to offer fashion materials that provide significant reductions in water during the manufacturing process, an important step toward responsible future fashion systems.

“In touting significant reductions in water, energy usage and CO2 emissions, C.L.A.S.S.’s  message has always been one of consistency but now with today’s customers becoming increasingly environmentally mindful, the timing has never been better to bring awareness to the ways that responsible sustainability can be incorporated, in an authentic way, into a fashion or lifestyle brand increasing the bottom line without compromising design integrity,” said C.L.A.S.S. founder Giusy Bettoni.

The future is already here; guests can see and feel materials during the event that showcase technological breakthroughs currently available. While C.L.A.S.S. works with leading brands that practice responsible design, the next step is to expand their reach and set a new level of standards that benefit the entire industry. To that end, they have identified C.L.A.S.S. Education, their new division, as an essential learning resource to support fashion schools. The new division was co-founded with James Mendolia, professor in the MFA Fashion Design program at Fashion Institute of Technology. C.L.A.S.S. will also launch C.L.A.S.S. e-commerce platform, which will sell partner materials to support emerging designers and fashion start-ups.

Thank you to all of our partners for making this event and the last ten years possible: Bacx by Centro Seta, Bemberg™ by Asahi Kasei, ECOTEC® by Marchi & Fildi, Organic Cotton Colours, Re.VerSo™, ROICA™ by Asahi Kasei, TINTEX Textiles, Zignone.

• Lectra – ESCP Europe ‘Fashion & Technology’ Chair round-table event hears panelists emphasize the need for fashion companies to embrace Industry 4.0.

Paris, February 27, 2018 – Lectra, the technological partner for companies using fabrics and leather, the French business school ESCP Europe and their joint ‘Fashion & Technology’ Chair explored the impact of Industry 4.0 on fashion’s value chain during a recent insightful round table discussion at ESCP Europe’s London campus.
For the participants Robert Diamond, Founder and CEO, Fernbrook Partners; Dan Hartley, Global Head of Digital Commerce, AllSaints; Laëtitia Hugé, Vice-President, Product Marketing, Lectra; Pierre Mercier, Senior Partner and Managing Director, Boston Consulting Group; and Evelthon Vassilou, CEO, Alison Hayes, there was consensus. Industry 4.0 represents unparalleled opportunities to take the fashion industry forward.

From brand to manufacturer, panelists from across the value chain emphasized the necessity for the industry to embrace the alliance between man and machines to leverage massive benefits, from quicker decision-making to cost-reduction.
Exploring the advantages of Industry 4.0 technology, Evelthon Vassilou commented: “Interpreting the data of what is, and isn’t, selling should help to speed up decisions. You can react very quickly across the entire supply chain, and either stop producing something unsuccessful or ramp up production if successful. Data and data analytics is not sufficient, to succeed this also requires a high degree of trust and integration between retailers and suppliers.”

“It’s about using technology to deliver continuous improvement in everyday business,” said Robert Diamond. “People are not good at making a large volume of repeatable decisions with many different data inputs”. Identifying where machines, and where people, bring value is an important part of embracing Industry 4.0. “If the business decision, or the outcome of the resolution tomorrow, is pretty much the same as what happened yesterday, then there is a chance for machine learning to help improve the situation.”
For Pierre Mercier, technology propelled by Industry 4.0 is disrupting former sources of competitive advantage, “forcing companies to rethink how they want to compete in their respective industries, and how to use data to compete differently. The common denominator in the fashion ecosystem is that everyone is facing the opportunity for a step change and need to figure out where to double down and accelerate their transformation.”

“Agility and flexibility are increasingly important for fashion players. Cutting-edge technology is supporting the fashion industry as it steps into the 4.0 era, ensuring businesses have the right solutions in their own ecosystems, to effectively harness the right data to make the right decisions,” stated Laëtitia Hugé.

At UK fashion brand AllSaints, valuable data harnessed from the net promoter score is paramount for their business. “We take customer feedback very seriously and we use it as a framework for our internal roadmap - from a tech and development point of view, through to design and fit, the customer is at the heart of everything we do,” stated Dan Hartley. In addition, he underlined that using technology across communications “will be huge going forward for AllSaints. From supply chain to store teams, we aim to use a cloud-based system that works within our own eco-system, complementing our agile model.”
The round table was moderated by the co-director of Lectra-ESCP Europe ‘Fashion and Technology’ Chair Valérie Moatti.
 

Paris, February 20, 2018 – Lectra, the technological partner for companies using fabrics and leather, is pleased to announce its partnership with Dual through the signing of a global agreement covering the Korean automotive supplier’s fabric seating and airbag businesses.

Backed by world-class research and development, Dual strives to meet evolving customer needs by offering innovative new automotive interior materials and advanced safety textiles. The supplier’s automotive trim and airbag divisions serve Hyundai-Kia Automotive Group, the fourth largest automaker in the world. Currently undergoing rapid expansion, Hyundai-Kia is counting on Dual to increase its manufacturing capabilities in the high-growth regions where the group operates, including China, Eastern Europe, Turkey and South America.

A key feature of the global agreement is Lectra’s commitment to help Dual optimize its manufacturing processes with the aim of improving its cost structure. Lectra’s most advanced technologies—Vector® for vehicle seating and FocusQuantum® for airbags—and unique expertise in cutting room processes are crucial to helping Dual reach its operational excellence objectives.

The agreement designates Lectra as sole supplier for high-ply cutting equipment and services for Dual’s seating and interiors business, and laser cutting equipment and services for the company’s airbag cushion business at six plants located in Korea and China.
For its operations in Korea and China, Dual will gain access to the full array of expertise, customer support and field services that Lectra provides worldwide. Lectra’s complete customer support structure enables maximum uptime through remote diagnostics and predictive maintenance.

“Dual will benefit most from this agreement by containing costs in the cutting room,” remarks Ong Jae-Yeol, Fabric and Seat BU Executive Managing Director, Dual. “This is precisely where Lectra’s expertise can help us gain a competitive advantage.”
“We are pleased to enter into this global partnership with Dual, to support them—not only with our best-in-class cutting technology, but also with Lectra’s expertise in cutting processes,” states Javier Garcia, Senior VP Automotive Sales, Lectra. “Our unique know-how contributes to Dual’s pursuit of operational excellence—the source of sustainable competitive advantage for car seat cover and airbag cushion suppliers.”

At the upcoming ISPO exhibition, SITIP are pleased to introduce BEHOT, a SITIP Heat Generating Technology for fabrics that has been licensed from the unique ROICA™ StretchEnergy™ System by Asahi Kasei and is already adopted by Santini that is offering Premium cycle wear Made in Italy since 1965.

SITIP is a leading Italian textile company specialized in high-tech and function-rich innovations for sport, technical underwear, shapewear, beachwear, footwear components, protective helmets, and in particular Velcro-receptive fabrics for mechanical fastening systems and a number of innovative technical fabrics for other industrial end-uses, all made through key manufacture technologies that include weft & warp knit fabric innovations.

Further, SITIP has more recently launched 16 unique trade brands, each one specialized in highly advanced innovation solutions designed to fit both market and the discerning needs of the contemporary consumer.

Santini is offering to the market a multi-panel thermal bib tight for the coldest winter training. Made with the special BeHot fabric by Sitip, constructed with the ROICA™ StretchEnergy™ active performance material, it not only insulates, but generates up to 2 degrees of heat as you workout as certified by CeRism, Outdoor Sport Research Centre at Verona University. Complete comfort and protection thanks to the Acquazero by Sitip treatment that ensures you stay dry even in the most challenging conditions.

The design is completed with breathable mesh braces for added comfort and a reflective pixel detail on the leg to improve visibility in low light conditions. BeHOT represents a special combination of a highly refined type of knitted construction combined with this unique ROICA™ Premium Stretch yarn function, and has been especially developed for this new high-function concept.

Sanitized®Odoractiv 10 with patented, dual-action technology

SANITIZED AG presents a new unique dimension to odor-management for functional polyester textiles. The newly developed wash-resistant Sanitized®Odoractiv 10 has a dual-action effect: on the one hand it prevents the bacteria from docking on the textile, and on the other, it adsorbs odors whilst the garment is being worn. The underlying technology that has been further developed was awarded the Swiss Technology Award. Goodbye permastink!

Manufacturers of functional polyester textiles from all over the world face the same challenge: freshly washed garments develop an unpleasant odor even after a short wearing period. The cause of this undesirable effect is not the human perspiration itself, but the bacteria that break down the perspiration. This process of decomposition generates the characteristic sweet, pungent smell. Once the bacteria, or the odor molecules, have penetrated into the surface of the polyester textile, they remain there permanently. Machine wash cycles and special detergents will never completely eliminate them. The bacterial colonization produces a biofilm on the polyester, which not only causes unpleasant odors, but also has a negative impact on the properties of the material.

Surface modulation with anti-adhesive properties
This is exactly where the new, dual-action technology from SANITZED AG comes into play: the surface of the textile is "coated" with Sanitized®Odoractiv 10 in the padding process. This creates a protective film on the surface of the textile. The bacteria use this anti-adhesive protective film as the basis for latching onto the garment. The bacteria can therefore be completely washed out in a normal wash cycle, consequently preventing any biofilm from forming. An anti-adhesion test method was developed in cooperation with EMPA to prove this Wash Effect.

The second advantage: Sanitized®Odoractiv 10 has a high adsorbing effect. Odors are "trapped" and removed during a normal wash cycle. The new product is the result of a technology that has been further developed and was awarded the Swiss Technology Award. The odor adsorption is identified using GC-MS.

As the Product Manager at SANITIZED AG, Urs Zihlmann, succinctly puts it: "Sanitized®Odoractiv 10 marks the end of permastink in polyester textiles." Sanitized®Odoractiv 10 can be combined with other Sanitized®products, in particular with products based on zinc pyrithione. The treatment does not influence the feel of the final treated textile.

Wash-resistant, sustainable and still "no nano"
The odor-reducing function is clearly still going strong even after 50 wash cycles. This is even the case if garments are washed at 30°C, either by hand or in the machine, meaning consumers save on water and energy, not to mention that the piece of clothing will look great for longer.

As with all its other products, SANITZED AG does not use any nano technology. The Hohenstein Institute has awarded the company the rating Skin Friendly, the bluesign®registration is underway. The product also bears the label Eco Passport by OEKO-TEX®.

"The unique, dual Odor Control Function of Sanitized®Odoractiv 10 enjoys a unique position in the market and it furthermore fulfills two market requirements: the prevention of permastink and the minimization of odor intensity during wear. Almost all manufacturers of functional polyester textiles are confronted with this problem," commented Urs Zihlmann. "The new technology creates tangible added value for consumers. This is a competitive differentiating
advantage for global marketing."

As with all other products, the service provided by SANITIZED AG includes technological advice before and during production, in the definition of the verified efficacy and in the use of the Sanitized®Ingredient Brand for promotional purposes.

TINTEX is pleased to present its latest fabric innovations at the above salons with a new range of more than 80 qualities and styles designed for the Sportswear, Athleisure, Fashion and Underwear market sectors. The collection focusses on three jersey fabric concepts: TIMELESS, FASHIONABLE & INNOVATIVE.

TINTEX is a modern industrial company based in the Porto region since 1998, producing market savvy fabrics for global designers and brands. TINTEX makes a truly sustainable range of precision, modern hybrid jersey fabrics that offer a better, Naturally Advanced choices to all its customers.

The new ‘Naturally Advanced’ position means “advancing beautiful, organic and natural materials to the next level combined with unique, hybrid ‘nature-tech’ smarts, with advanced, added value and creativity, thanks to dedicated investments that serve and secure our customer demands both now and in the seasons to come” says CEO Mario Jorge. New innovations, which include the ISPO Best Product Award i (SOFT EQUIPMENT category) in TexTrends for fall winter 19/20, maintain and upgrade the honest but hi-tech sustainable organics that is at the heart of the TINTEX DNA to create better, smarter eco-materials, always with new levels of performance and hi-tech smarts, thanks to its expertise in specialist dyeing and finishing techniques, coatings and applications. These are all researched, designed and made using the latest equipment and processes. This season the new TINTEX collection plays with new colour balance techniques that deploy the benefits of chromotherapy for welbeing alongside skin safe materials and finishings.

The collection uses up to 90% of new smart and sustainable materials and include: Tencel, Modal & Micromodal, Organic Cottons, Supima cottons, Seacell fibres, Natural organic linens and the new, full colour ECOTEC® yarns by Marchi & Fildi, a smarter cotton made from pre-consumer clippings that in manufacture save up to 79% water. This season TINTEX is also introducing the new ECOTEC® yarn Phoenix (50% ECOTEC®, 50% recycled polyester, NM1/50 GRS-certified) for open, light and dry textures. Wellbeing credentials are guaranteed with Tessile e Salute certifications, TINTEX also presents new developments using the ROICA™ Eco Smart family of ecosustainable stretch yarns with certificated credentials. This family of yarns claim the world-first GRS certified ROICA™ premium stretch yarn that comes at least 50% from recycled pre-consumer waste.

The newest introduction for second skin qualities and for products to the athleisure market within TINTEX collection is ROICA™ Feel Good family that promises a new level of performance with ‘feelgood comfort’ and freshness.

For colouration effects, we can use the ROICA™ Colour Perfect family of yarns to create a flawless and responsible finish to dyed performance stretch assortments. Colours to Tranquilize, to Activate the Senses, to Recharge, to Energize.

Key highlights include: changeant effects (yarn and dyeing solutions), thermosensitive (reds/ blues) coatings, UV sensitive coatings and colourful coated patterns, extra fine and semi-transparent jerseys, but also, compact and fluid qualities.

Beijing - Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017.

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.   

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.” 

About JD.com, Inc.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017, JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

About Tencent Holdings Limited

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China. Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth. Tencent invests heavily in people and innovation, enabling us to evolve with the Internet. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, statements regarding the expected closing of the transactions and the quotations from management in this announcement are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to, those included in JD.com’s and Vipshop’s filings with the SEC and in Tencent’s filings with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and none of Tencent, JD.com or Vipshop undertake any duty to update such information, except as required under applicable law.

The AZL will continue its collaboration on composites in buildings and infrastructure after completing an initial market and technology study which identified new potentials for composite technologies in buildings and infrastructure markets. The aim of the new AZL Workgroup which will meet for the first time on January 25th, 2018 is to jointly develop new applications and to support the business development for composites in these two growing markets. The meeting is open to interested companies from the composite industry as well as the building and infrastructure markets.

The aim of the initial workgroup meeting will be to turn insights from the study into a long-term workgroup collaboration and to define topics and initiatives for the joint cooperation in the field of process and manufacturing technologies, fire safety regulations, materials as well as standards and norms. Industrial keynote presentations will introduce these action fields and will provide an insight into building and infrastructure applications for composites. The meeting will furthermore provide a platform to network with companies along the entire composite value chain.

Dr. Amer Affan, CEO and founder of AFFAN Innovative Structures based in Dubai is in charge of various composite projects for buildings such as the Museum of the Future in Dubai: “We have been utilizing structural composites in construction since 2010. Composites is a truly high-tech material compared with the traditional building materials (steel, concrete, timber and aluminum) but it is still to be recognized as such in the conservative and price-sensitive building industry. AZL, particularly its location at the RWTH Aachen University and its partner companies, offers a good platform to progress the use of composites in construction.”

AZL together with more than 25 companies just completed the Joint Market and Technology Study on “New Potentials for Composite Technologies in Buildings and Infrastructure” establishing a broad knowledge on business opportunities for composite technologies in these two growing markets. In a structured approach, the study determined the key segments as well as the technologies/applications with the highest market and technological potential. Analyses of 20 market segments, investigation of 438 applications, technology analyses of 25 highlight components and 11 detailed business cases were elaborated throughout the study. Additional to requirement analyses for materials and production technologies, new concepts for efficient profitable production technologies and cost engineering analysis were developed. With the workgroup, the AZL will take this initiative a step further with the aim to build a long-term cooperation platform for composites in buildings and infrastructure markets.

Justin Jin, CEO of the Korean company AXIA Materials participated in the study and is part of the AZL Partner Network: “As producer of large thermoplastic composite sheets and composite SIP (Structural Insulated Panel), we are eager to drive composites in B&I applications with the best efficient way. The AZL study on Buildings and Infrastructure provided us a great networking with key players in this business field and opportunities to strengthen our products with the key elements from partners. The study also gave us a proper market understanding including market size/volume in numbers to prove the value of this technology to building industry. We are looking forward to following up on these first insights and to realize applications with the AZL and its partners.”

Besides the networking options, the meeting will offer the opportunity to get an insight into the activities of the AZL Network consisting of nine research institutes at the RWTH Aachen Campus and more than 80 companies from 21 countries. During an optional guided tour, participants will visit selected institutes at the RWTH Aachen Campus. The meeting is open to all interested companies and free of charge.

More Information on Meeting and the Study
Information on AZL activities in the field of buildings and infrastructure:
www.azl-lightweight-production.com/composites-buildings-infrastructure
Details and registration to first Workgroup Meeting on January 25th, 2018:
http://www.azl-lightweight-production.com/termine/1st-workgroup-meeting-buildings-infrastructure

• Revenue up 9.4 percent to EUR 1,726.6 mn
• EBITDA improvement of 23.9 percent to EUR 397.1 mn
• Retail bond of EUR 120 mn redeemed – Lenzing with net liquidity as at end of September
• State-of-the-art application innovation center opened in Hong Kong

Lenzing – The Lenzing Group generated a substantial increase in revenue and earnings in the first nine months of the 2017 financial year compared to the prior-year period. The company is continuing the implementation of its Group strategy sCore TEN in order to further expand the offering of specialty fibers and be even closer to its customers and business partners.

Consolidated revenue climbed 9.4 percent year-on-year to EUR 1,726.6 mn. This increase is mainly attributable to higher prices for all three fiber generations. Consolidated earnings before tax, depreciation and amortization (EBITDA) rose 23.9 percent to EUR 397.1 mn, corresponding to an EBITDA margin of 23 percent, up from 20.3 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 34.6 percent to EUR 298.4 mn, resulting in a higher EBIT margin of 17.3 percent (Q1-3 2016: 14 percent). The profit for the period improved by 35.3 percent to EUR 219.3 mn, and earnings per share rose 36 percent to EUR 8.12 per share. In September Lenzing redeemed the retail bond of EUR 120 mn. At the end of the reporting period the Group had net liquidity of EUR 16.9 mn.

“In the first three quarters of 2017, we successfully captured value in a very positive market environment and we continue to implement the sCore TEN strategy with great discipline. The opening of our new application innovation center in Hong Kong is an important step to boost our regional innovation capabilities. We were particularly proud to launch TENCELTM Luxe as a sign of Lenzing’s ongoing commitment to innovation and sustainability”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “After three excellent quarters we are confident to deliver substantially better operating results in 2017 compared to 2016, but at the same time we do expect more headwinds in 2018.”

Focus on customer intimacy

In September 2017, the Lenzing Group opened a new application innovation center (AIC) in Hong Kong, thus setting a further milestone in strengthening its innovation offering to all partners along the value chain. New applications for Lenzing fibers will be developed and tested at the new facility, among them applications for recent innovations such as the TENCELTM Luxe branded lyocell filament, the RefibraTM branded lyocell fiber and the EcoVeroTM branded viscose fiber.

Furthermore, new sales and marketing offices were opened in Turkey and South Korea in the first half of 2017. The direct contact to customers and well-equipped showrooms featuring products made of LenzingTM fibers serve as the basis for providing even better customer support.

Investment program in progress

The Lenzing Group aims to increase the share of specialty fibers as a percentage of revenue to 50 percent by 2020. Following the capacity expansion initiatives in Heiligenkreuz (Austria) and Mobile, Alabama (USA) which are both underway, Lenzing announced its intention to construct the next plant to produce TENCEL® fibers in Thailand.

A new era of sustainable production

In October 2017, the Lenzing Group presented a new product, TENCELTM Luxe, at an exclusive event held in Paris. The TENCELTM Luxe branded filament yarn represents Lenzing’s entry in the filament market. This fiber will support the Lenzing Group’s path towards becoming a true specialty player in the market for botanic materials derived from the sustainable raw material wood.

The launch volumes of TENCELTM Luxe are being produced at the Lenzing site. The basic engineering for a commercial scale plant was commenced.

Outlook
Demand development on the global fiber market remains positive within the context of a generally friendly macroeconomic environment. Lenzing expects wood-based cellulose fibers to grow at an even higher rate than the overall fiber market. After three excellent quarters, the Lenzing Group will achieve an operating result in 2017 that is significantly better than 2016.

For 2018, Lenzing sees a number of somewhat opposing factors that limit visibility regarding fiber price developments. Overall market demand is expected to remain high. However, the Group expects a substantial increase on the supply side, especially for viscose but also for cotton. Price trends for selected key raw materials, especially caustic soda, are difficult to predict. Against this background the Lenzing Group expects a much more challenging market environment for standard viscose during the upcoming quarters.

The above-mentioned development reassures the Lenzing Group in its chosen corporate strategy sCore TEN. The Group initiated its transformation from a volume-oriented viscose player to a value-oriented specialty fiber player at the end of 2015, and will continue the disciplined implementation of its business strategy.