From the Sector

• Major Monforts denim customers continue to pioneer new initiatives that are pushing the boundaries of sustainable production.

Recycling their cotton waste has become one way these companies can do more with less, and at the recent Kingpins24 Flash online event, Sedef Uncu Aki, director of Orta, headquartered in Istanbul, Turkey, announced a new partnership with leading recycling operation Gama Recycle.

Traceable
“Through this local partnership we will supply the waste from our spinning mills and return around 3,000 tons of premium quality cotton back to them,” she said. “We have established a truly controlled and traceable system and partnering with a domestic recycling centre is important because a lot the carbon emissions associated with recycling usually come from transportation.”

Orta’s ZeroMax range meanwhile uses no cotton at all, being based on Lenzing’s Tencel cellulosic fibre, while the company’s involvement in denim production for a recent launch by Levi Strauss, of jeans made with organic cotton and Circulose – a breakthrough material developed by re:newcell of Sweden and partners – was hailed as a further step forward.

To make Circulose, re:newcell repurposes discarded cotton textiles, such as worn-out denim jeans, through a process akin to recycling paper. The incoming waste fabrics are broken down using water. The colour is then stripped from these materials using an eco-friendly bleach and after any synthetic fibres are removed from the mix, the slurry-like mixture is dried and the excess water is extracted, leaving behind a sheet of Circulose. This sheet is then made into viscose fibre which is combined with cotton and woven into new fabrics.

Circular Park
Omer Ahmed, CEO of Artistic Milliners also announced plans for his company’s new 70,000 square-foot Circular Park in Karachi, Pakistan, at Kingpins24 Flash.

Once complete, this will add three million square metres of additional denim capacity a month to the company’s production and take its total recycled output to a monthly five million metres.
Ahmed observed that there is currently a lack of sustainable fibres that are readily available to use for denim production at scale.

“Organic cotton is too expensive, and in my opinion always will be,” he said. “Cottonised hemp is also not cheap and it’s hard to mix with cotton, while the new regenerated cellulose fibres that are now emerging are promising, but currently in short supply. Recycled polyester is meanwhile still based on petroleum resources which we want to move away from. As a consequence, there are only a few other options for us as a manufacturer and this new project will help us minimise our own waste while significantly lowering our carbon footprint.”

Other Monforts denim customers to introduce cotton fibre recycling operations at their plants recently include AGI Denim, Bossa and Soorty.

Vertical savings
Refresh is the name of the latest collection from AGI Denim – reflecting the company’s significant reduction in water consumption.

The company has just opened new fibre spinning and denim mills at its complex in Karachi, Pakistan.

“Over the years we’ve gone through a series of backward integration steps to become fully vertical,” said AGI Denim executive director Ahmed Javed, at Kingpins24 Flash. “In our latest expansion, we revisited every step of the production processes in order to make resource savings.”

Innovations have included the installation of proprietary robotics for garment finishing, but the most attention has been paid to water savings.

“Pakistan is one of the largest cotton-producing companies in the world and we’re fortunate that the type of cotton that is grown here is well suited to denim production and also helps us lower our carbon footprint, with everything done in close proximity,” Javed said. “In the lifecycle of a pair of denim jeans, however, cotton fibre production contributes 68% of water consumption. While we cannot control how much water cotton needs for it to grow, we can rethink the way we use it in our factory.”

Refresh-branded denims are washed from 100% recycled water as a result of the company’s new wastewater treatment plant, which puts production wastewater through a series of steps beginning with equalisation, followed by aeration and concluding with sedimentation. The water travels through filtration and ultrafiltration systems before being subjected to an activated carbon system and finally a reverse osmosis system to reduce any dissolved salts.

AGI now recycles 4.4 million gallons of water each month – enough to wash a million pairs of jeans.

Sustainable
Monforts has a leading position in the field of denim finishing with its well proven Thermex continuous dyeing systems, Montex stenter dryers and other lines for resource-efficient and economical processing.

“Our denim partners are constantly setting themselves new goals in respect of sustainable production – and more importantly, achieving them,” says Hans Wroblowski, Monforts Head of Denim. “We work closely with them with the aim of constantly optimising processing parameters and achieving further savings in energy, water and raw materials throughout the dyeing and finishing stages of production.”

The latest Monforts innovation for denim is the CYD yarn dyeing system. This technology is based on the effective and established dyeing process for denim fabrics that is now being applied for yarn dyeing. The CYD system integrates new functions and processes into the weaving preparation processes to increase quality, flexibility, economic viability and productivity. A full CYD line is now available for trials at the company’s Advanced Technology Centre in Mönchengladbach, Germany.”

Decision SA, part of the leading European composites consortium, Carboman Group, and a specialist in the development, prototyping and production of large composite structures, is proud to announce a new direct mould tooling technology for aerospace.  Decision’s latest tooling solution provides OEMs and manufacturers with short lead times for highly stable direct moulds for series production both in and outside of the autoclave at temperatures of up to 180˚C.

Decision and Carboman recently delivered the first customer moulds using the new technology, providing a tooling glass prepreg, stainless-steel backed direct female mould tool created for the series production of a Class 3 fairing to a leading European aerospace OEM. Decision has immediate availability and capacity for similar tooling projects with lead times currently as short as six to eight weeks.

With no traditional plug or mould pattern required, Decision’s direct mould process starts with the group’s engineers selecting a material combination for the tool surface and support structure that will provide the optimum match between the coefficient of thermal expansion (CTE) of the mould and the composite part to be processed.  The CNC machined composite face sheet is supported by a stress-relieved metallic or composite backing structure before final post curing and machining is completed. The principal benefit of this novel approach, aside from removing the need for costly and time-consuming plug production, is the production accuracy delivered by the closely matched CTE of the mould tool and the finished composite part.

The autoclaved composite tool surface is not only extremely dimensionally stable up to processing temperatures of 180˚C, but it can also be configured with additional metallic inserts or fixtures if required.  

Produced in an EN 9100:2018 controlled production environment, and with CMM checks before and after machining, the new direct composite tools have dimensional tolerances of +/-0.2mm.  The available tooling dimensional envelope is currently defined by Decision’s 2200mm x 6000mm autoclave.

“With our new direct tooling technology, we are able to combine the highest technical standards in dimensional accuracy and thermal stability with extremely short lead times.  Decision and Carboman Groups’ combined mission has always been to develop the construction methods for tomorrow’s composite structures, and we believe that this tooling solution will allow our customers to accelerate the implementation of the next generation of high-performance carbon fibre aerostructures and components” Grégoire Metz, Managing Director, Decision SA.

Kornit Digital announced United Kingdom-based Tayprint has implemented the Kornit Avalanche HD6 system for efficient, versatile direct-to-garment (DTG) apparel production on demand. This technology effectively replaces the use of screen printing within their operation, reducing their cost per print while making short runs profitable, eliminating inventory and resource waste, speeding production, and ensuring nearly unlimited design capabilities, applied to a broad array of materials, using a single eco-friendly ink set.

While Tayprint predominantly serves as a provider of large-format digital printing, delivering approximately 500,000 square metres of imprinted product annually, they had established a screen-printing operation, as well, generating roughly £200,000 in t-shirt sales per year. While this provided a strong profit channel, screens offered limited growth potential, as order volumes were shrinking, customers demanded quick turnaround, graphic capabilities were limited, and setting up was a drain on both labour and materials. Each of these drawbacks are addressed by Kornit’s on-demand digital production technology, which enables suppliers to imprint apparel in any quantity, using a single-step process, completing the process in mere minutes.

• Next Jec World Will Take Place From March 8 To 10, 2022

The continued impact of the Covid-19 pandemic unfolding throughout 2021 has forced the JEC World team to reexamine the possibility of holding the next edition of JEC World this year. Thus, after thorough consultation of clients and partners, the JEC World team has decided to postpone the next edition of JEC World to March 8 to 10, 2022.

Amidst growing concern among our exhibitors and partners surrounding the critical situation of the Covid 19 restrictive measures and other limitations in place in many countries, the JEC World team has decided to work on a new timeline to hold the next edition of the event in the best conditions in 2022. Thus, JEC World exhibitors were asked to respond to a survey offering two new dates to determine which one would suit them the most. It appeared that 89% of respondents favored holding the next JEC World session from March 8 to 10, 2022.

“The coronavirus pandemic situation has taken the central stage, so in light of the current situation, it would not be possible for us to satisfy our customers’ requirements for such an international trade fair as JEC World in June. We truly regret having to make this difficult decision once again. However, we are all committed, starting today, to deliver the best JEC World experience to our clients in 2022.” says Eric Pierrejean, CEO of JEC Group. “While waiting for welcoming the international composites community back to Paris in March 2022, JEC Group team is preparing various online Rendez-Vous in June enabling the entire composites community to discover trends and innovations, and to connect″, he added.

The leading composites event will take place from March 8 to 10, 2022, at Paris Nord Villepinte (same venue) and online for a new augmented experience.

As the leading trade show of the composites industry, JEC World will bring together the whole composites materials value chain and professionals from application sectors, experts from the scientific and academic world, associations, and media from more than 112 countries, introducing in 2022 its audience its new digital platform, JEC World Augmented.

“JEC World 2022 and the augmented platform  will bring the international composites community and specialists together to resume business, network, hold business meetings. They will also have the chance to participate in conferences, workshops, and discover the latest composites innovations,” says Adeline Larroque, Show director and EMEA events.

• Every moment of our day is important: TINTEX knows it and for SS 2022 is proposing solutions to enhance our wellbeing, fitting all our possible and different needs 24 hours a day.

From sunrise to sunset

Last season TINTEX “RAW” collection has successfully explored the modern human being dimensions with no more genders and races, and today the new SS 2022 collection confirms the Naturally Advanced Evolution vision built on a strong environment-driven approach and cutting-edge technology able to offer contemporary consumer a brand new smart and performing choice.

How? The SS2022 TINTEX 24h collection is offering solutions that can fit the different moments of our daily lives to rediscover ourselves in the outside world, leaving behind the social isolation that we all experienced in 2020. Freedom, comfort, flexibility and movement are the concepts the company explores looking not only to fashion moments, but to all the occasions of life where the most comfortable yet performing and responsible materials - from recycled synthetics to organic cotton - are the “right value choice”.
 
From there, the concept of giving life to 10 fabrics that truly embody our daily lifestyle: comfort, versatility, wellbeing.

Colours. A journey through warm and vivid colors - from reddish apples to sunny oranges with notes of starry blues - encourages wellbeing, feeling of relief, freedom and happiness because we feel that "we are alive again” when we go outside, doing everything we have always done, but that we were forced to put on pause. “RADIANT YELLOW it’s TINTEX color of the season, with its inherent positivity and strength. An energetic color that calls for a natural freedom to explore the world; a warm sensation of summer that feels like home” declares Ana Eusebio, designer at TINTEX Textiles.
 
All the collection focuses on the interlock structure, able to “concretely” deliver the value of versatility  and  fulfil performances needs of different moments of life. The idea is to create a collection that explores only one structure taking it to the limit, recreating, re-inventing and re-exploring its possibilities in order to meet the value of duality. Yes, in a single knit TINTEX challenged the way interlock is usually constructed by exploring each side of the articles and combining texturized with plain surfaces as well as light and heavy weights. Interlock offers natural stretch performances and exceptional dimensional stability.

Moreover, an important eye on responsible performances improvement to meet contemporary challenges and make us feel comfortable and safe! Always thanks to TINTEX DNA that is showing once more its consistent and evolved skills in making smart fabrics combined with unique eco-high-tech finishings.
 
Materials & finishings. A soft performances journey where it’s all about our dynamic daily lives. Through light and heavier fabrics, we find a well thought blend of innovative and responsible fibres. Strong focus is given to exceptional “transformation” technologies such as Newlife™, Q-Nova®, and ROICA™ EF by Asahi Kasei. While Organic cotton, TENCEL™ Lyocell fibers and TENCEL™ Lyocell fibers with Micro technology offer a unique natural and precious touch.

Fresh fibres and finishings that enhance freshness and comfort. Polygiene® STAY FRESH and Polygiene® Odor Crunch for active odor control performances, Hydroperm® by Archroma technical hydrophilic finishing for a fast dry, comfortable surface and a fresh look. Absolute novelty of the season is the TASTEX®COOL-EX by TANATEX, a skin-care treatment agent based on micelles, which gives a special cool sensation using dynamic temperature control.
 
Lastly, TINTEX addresses the accessories and outerwear markets with a “look-like leather” created with a water-based coating technology that incorporates pine shell.

Wardrobe solutions. 10 versatile articles that can perfectly fit the different areas of our daily wardrobe: from casual to formal wear, from athleisure to sports, from loungewear to underwear.  10 innovations that have become a  REAL  24th hours smart wardrobe   thanks to the unique design interpretation of these fabrics  by  5 contemporary and innovative Portuguese  designers such as : Rita Sá, David Catalán, Maria Gambina, Maria Meira and Behén.

Unique pieces designed and created by them   to show once more the beauty, the versatility, the smart performances of TINTEX collection that has been able to transform itself into a naturally advanced valuable wardrobe where fabrics have concretely come to life to make our everyday life smart in each moment! You can have a real look at this wardrobe that fully represent the values behind the collection, smartly interpreted by the Portuguese designers at this video  https://www.youtube.com/watch?v=ppPHPK0Zyu8 .

Thinking about what is happening around us as planet and individuals in an era of unpredictable challenges, we need to be creative constantly reinventing ourselves, aware of a new society and way of consuming where environment and human needs count.  And TINTEX, that has over-time established itself as a global leader in smart innovation, decided to focus exactly on that. The company DNA and vision of Naturally Advanced Evolution is centered on this new way of life that must adapt, but NEVER - now more than ever - compromises neither nature nor new generation’s performance.

• SGL Carbon supplies first plants with DIN EN1591-1 tightness certification to the chemical industry
• First column already delivered to major European customer

In plant operation in the chemical industry, the tightness of flanged joints is becoming increasingly important when dealing with aggressive and corrosive operating media. In accordance with European Union requirements, the German government has defined new requirements in the first administrative regulation to the Federal Immission Control Act (BImSchG), which will apply from January 2021. SGL Carbon is the first manufacturer of PTFE-lined columns to be able to provide the required proof of tightness according to DIN EN 1591-1 and has already delivered the first column with the new certification to a major European customer.

Specifically, the Technical Instructions on Air Quality Control (TA-Luft) of the Federal Immission Control Act (BImSchG) prescribe new, stricter emission values (leakage class L0.01) for keeping the air clean, which must be complied with when operating plants requiring a permit. In order to be able to guarantee the technical tightness of steel/PTFE flanged joints, SGL Carbon, together with a working group of other companies, first determined the EN 13555 sealing characteristic values, which reflect the material-specific PTFE properties as well as the characteristic manufacture and shaping of the linings. With these characteristic values integrated in a database, SGL experts were able to perform realistic DIN EN 1591-1 calculations for flanged joints of a packed column lined with POLYFLURON PTFE and prove the tightness in accordance with TA-Luft. The design, final acceptance and pressure tests in accordance with Directive 2014/68/EU (PED) were successfully certified by a recognized notified body.

"With the rapid implementation of the new  tightness requirements for columns, our solutions offer customers further significant added value, which is currently also being applied to other products. Our sales team and technical service are available to provide customers with comprehensive advice on the new directives and our products," explains Ralph Spuller, Director Product Management in the Process Technology (PT) Business Unit at SGL Carbon.

Hexcel announces its latest HexPly® XF surface technology that reduces shell manufacturing time within the wind blade surface finishing process. HexPly XF increases overall blade manufacturing efficiency by reducing time in the mold by up to two hours and by banishing surface defects that require rework before painting.

Hexcel’s HexPly XF surface technology has been formulated to address the limitations of current blade shell surfacing techniques whereby pinholes and other surface defects have to be repaired by hand to achieve the perfectly smooth surface required for painting.

HexPly XF surface technology introduces a new material format as the surface finishing layer, eliminating the need for a traditional in-mold gel coating process. HexPly® XF for infused rotor blades, is a lightweight non-woven semi-preg construction, comprising an epoxy resin matrix, that co-cures with standard epoxy infusion systems. The product has a successful track record in prepreg blades and has now been adapted for infusion processes.

Easy to handle and supplied in a ready to use roll form, HexPly XF can be quickly applied by hand or with semi-automated layup equipment. It features one self-adhesive, surface finishing side - indicated by a removable protective foil. This side of the prepreg is placed against a release agent treated mold surface. Once the material has been positioned, the lay-up of the blade shell structure can start immediately, and the laminate can be infused. After curing, the blade is de-molded with the manufacturer benefitting from a pinhole-free surface that needs minimal preparation before painting.

HexPly XF material is less than half the weight of a typical gel coat per square meter, reducing the overall weight of the blade. Additionally, the consistent areal weight and thickness of the prepreg film provide a completely uniform surface coating, ensuring blade weight distribution and balance are maintained, which is critical as rotor diameters continue to increase. With no need to handle or mix liquid chemicals as in the gel coat process, HexPly® XF also improves the health and safety working conditions on the shop floor.

The material has a shelf life of six weeks at ambient temperature, which also minimizes cold storage requirements and helps to reduce scrap.

Swedish commission dyeing company 7H Färgeri is looking to propel itself to the forefront of sustainable fabric production with the installation of the first industrial scale imogo Dye-Max spray dyeing line.
Currently under construction, the line will be delivered in the first week of March to the 7H plant close to the Swedish city of Borås. It will have a full working width of 1.8 metres with an operating speed of up to 50 metres for the reactive dyeing of cellulosic fibre-based fabrics. In addition, it will be capable of carrying out the application of a wide range of fabric pre-treatments and finishing processes, providing the company with unbeatable flexibility in production.

A proven Mini-Max laboratory unit for pre-determining application volumes and colour matching will also be delivered as part of the contract.

With the potential to slash the use of fresh water, wastewater, energy and chemicals by as much as 90% compared to conventional jet dyeing systems, the DyeMax has gained considerable attention since the concept was outlined and a prototype machine constructed in 2019.

Pilot scale trials have subsequently been carried out with many well-known international textile companies and their brand partners.
The application unit of the Dye-Max consists of a closed chamber containing a series of spray cassettes with precision nozzles for accurate and consistent coverage, in combination with the patented imogo Pro Speed valve that controls the volume to be applied.

Control and precision
“We are achieving an extremely low liquor ratio of around 0.5-1 litres per kilo of fabric and we fully control the pickup, applying precisely what is required to the specific fabric,” says imogo founding partner Per Stenflo. “Compared to traditional padders there is no contamination of the dyebath or dilution of the dye liquor to worry about.
Fast changeovers with virtually no waste together with a high production speed enable a high productivity and unmatched production flexibility. The system is also equipped with an exhaust system and droplet separator to ensure that the environment around the unit is safe and free from particles.

The imogo Mini-Max meanwhile frees up valuable production time by avoiding wasteful pre-runs. The user simply sets the recipe with the Mini-Max and transfers the parameters to the Dye-Max recipe database for the system to be fully production ready.

7H Färgeri was founded in 1935 and has established itself as the Nordic region’s most complete dyeing and processing plant, specialising in technical and functional textiles for the automotive and soft furnishings sectors, as well as functional and protective clothing.

The family-owned business is now run by brothers Johan and Peter Engelmann.
“We are pleased to be pioneering a sustainable first for the dyeing industry,” said Johan Engelmann. “Our goal is to offer the market products and services with the highest quality in the most climate-smart and sustainable way, and imogo’s spray technology will give us the opportunity to offer innovative new services and products to both existing and new customers. It will be a very exciting journey.”

World Congress on Textile Coating
On February 12th Per Stenflo will make a presentation entitled ‘Transforming Textile Dyeing’ during the online World Congress on Textile Coating which is held over four days, between February 11th and 19th.

Lectra announces its plan to acquire the entire capital and voting rights of US-based Gerber Technology. A key Industry 4.0 player in the fashion, automotive and furniture industries, Lectra designs smart industrial solutions – software, equipment, data and services – that help brands, manufacturers and retailers develop, produce and market their products.

The acquisition, if and when consummated, would allow Lectra to complement its market position and continue to enhance its offerings based on Industry 4.0 technology that will enable its customers to boost the productivity and profitability of their operations. After the French work council of Lectra is consulted and the binding documentation is signed, completion of the acquisition shall remain subject to merger control clearance and other customary conditions and shall be submitted to Lectra shareholders for approval.

The proposed combination would occur at an opportune time for both companies and their customers. The current uncertain economic climate and unprecedented challenges that fashion, automotive and furniture companies are facing due to the COVID-19 pandemic make it more important than ever for them to transform, digitalize and optimize their operations.

For over 50 years, Gerber Technology has used its proprietary technologies and deep domain expertise to provide integrated software and automated hardware solutions to companies around the world, including over 100 Fortune 500 companies in 134 countries.

The strategic combination of Gerber Technology and Lectra will create a premier advanced technology partner, able to quickly meet changing customer needs and deliver even more value through seamlessly integrated solutions. Together, the two companies will have a large installed base of product development software and automated cutting solutions in operation, with a worldwide presence and a long list of prestigious customers.

Consolidating the two companies’ research and development capabilities will enable the combined company to accelerate development of Industry 4.0 technologies and help its expanded customer base seize the full potential of these innovations.
Integrating the technology of the two companies will endow them with the resources to anticipate and address rapidly changing market conditions.

Key transaction terms

Under the proposed acquisition, Lectra would acquire all outstanding shares of Gerber Technology on a cash-free debt-free basis for an upfront payment of 175 million euros – through a combination of cash and debt – plus 5 million newly issued Lectra shares to AIPCF VI LG Funding, LP (“AIPCF VI LG”), an affiliate of American Industrial Partners that is Gerber Technology’s sole shareholder. This would represent a total amount of about 300 million euros based on Lectra’s closing share price on February 5, 2021. No contingent consideration is contemplated.

Gerber Technology’s revenues was 165 million euros in 2020.

Thanks to the strong value creation deriving from significant synergies, Lectra expects the transaction to be accretive for shareholders from 2022.

Upon closing, Daniel Harari would own c. 14.6% of the Lectra shares and AIPCF VI LG would own c. 13.3%.

Lectra’s Board of Directors would welcome a director representing AIPCF VI LG.

Daniel Harari would continue to be the Chairman and Chief Executive Officer of Lectra. Gerber Technology Chief Executive Officer, Mohit Uberoi, would assume special advisor to Daniel Harari role until end-2021.

Lectra’s shareholders would be invited to vote on the issuance of the 5 million new Lectra shares reserved to AIPCF VI LG at a dedicated Extraordinary Shareholders’ Meeting which is currently expected to be held on April 30, 2021. A report containing additional information will be made available to the shareholders prior to the Extraordinary Shareholders’ Meeting.

Lazard is acting as exclusive financial advisor to Lectra, and Latham & Watkins as legal counsel to Lectra.

Goldman Sachs is acting as exclusive financial advisor to AIPCF VI LG, and Ropes & Gray LLP, Baker Botts LLP and Gide Loyrette Nouel A.A.R.P.I. as legal counsel to AIPCF VI LG.

2020 results, update on the 2020-2022 strategic roadmap and guidance for the coming years will be disclosed on February 10, 2021.

Lectra management will discuss the transaction, provide forward-looking guidance for the combined company upon closing of the transaction and answer questions from the financial community during the February 11, 2021 webcast Analyst Conference meeting in French starting at 8:30 am (CET - Paris).

Order Intake Continued to Recover in the Fourth Quarter of 2020:

• Order intake increased to CHF 215.1 million in the fourth quarter of 2020 and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales expected
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee

Rieter posted a globally and broadly supported order intake of CHF 215.1 million in the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020 after the slump in demand in the second quarter continued (order intake second quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds to a decrease of 31% compared to the previous year.

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

As expected, as a consequence of the economic effects of the COVID-19 pandemic, the Rieter Group closed the 2020 financial year with considerably lower sales than in the previous year. According to the first, as yet unaudited figures, total sales of CHF 573.0 million were achieved, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million).

Order Intake by Business Group
All three business groups were affected by the slump in demand in the second quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order intake in the third and fourth quarters of 2020, the weak second quarter was only partially offset.

The Business Group Machines & Systems was particularly hard hit by the effects of the pandemic, with a year-on-year decline of 35%. The Business Groups Components and After Sales each recorded a 24% reduction in order intake.*

Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in all three business groups. Accordingly, reluctance to invest and deferred deliveries by customers caused sales in the Business Group Machines & Systems to decline by 24% compared to the previous year.

Due to COVID-19, a large number of spinning mills stopped production worldwide. This led to low demand for spare parts and wear parts, especially in the second and third quarters of 2020. Accordingly, compared to the previous year, sales in the Business Groups Components and After Sales fell by 24% and 27% respectively in the 2020 financial year.*

Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a consequence of the COVID-19 pandemic.*

EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019: 11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31, 2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in the mid three-digit million range.

First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the first half of 2021 to be below the break-even point.*

Change to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding Ltd. has appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.*

Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur on April 15, 2021.*

*See attached document for more information.