From the Sector

• A new collaborative business model gives life to ECONNECTION: an eco-high-tech collection designed thinking of the “end of life”

Three premium textile companies, one common goal: jointly offer ready to use, coordinated solutions that are design driven, performing and responsible also at the end of life.

Penn Textile Solutions/Penn Italia - international company producing and developing innovative fabrics through warp and weft knitting technologies, Tessitura Colombo Antonio, famous for the processing of lace and ribbons dedicated to the world of corsetry , Elastici Besana specialized in the production of narrow elastic for corsetry and underwear, have been working together to expand the frontiers of sustainable manufacture practices and to offer an innovative collection , a new set of incredible eco high tech innovations delivering a responsibility concept including also the end of life : ECONNECTION.

The responsible ECONNECTION collection, in which the words ECO and CONNECTION mixed to underline the importance of connect and come together for a sustainable project, features:

• 7 advanced knitted stretch fabrics by Penn Textile Solutions/Penn Italia,
• 3 precious laces by Tessitura Colombo Antonio
• 3 functional bands by Elastici Besana

So, 3 key leading companies with a key target : to design and deliver the market amazing responsible fabrics able to offer a responsible end of life. This opened up the door to new generation of ingredients such as:

• ROICA™ V550 made by leading fiber manufacturer Asahi Kasei, a premium sustainable stretch yarn that at the end of his life smartly breaks down without releasing harmful substances in the environment according to Hohenstein Environment Compatibility Certification and also boasting the Gold Level Material Health Certificate by Cradle-to-Cradle Product Innovation Institute** as it has been evaluated for impact on human and environmental health.
• Amni Soul Eco®, the world’s first biodegradable in anaerobic conditions polyamide 6.6 yarn that degrades in around 5 years* after disposing in landfill, developed by SOLVAY and produced and distributed in Italy by FULGAR.

The collection is presented in its BIO -BOX that will be sent to selected brands at worldwide level

A smart project that highlights the importance of synergies between companies know how, and new generation of materials , that is able to take products to a new level of responsible innovation, technology and exceptional performances where beauty and function will be able to carry the smart factor for the values they represent for the consumer and highlighting for the first time also the importance of their end of life.

• License agreement concluded for promising technology
• Integration into the digital spinning suite ESSENTIAL
• Implementation of digital strategy further advanced

The Rieter Group concludes a license agreement with WW Systems on November 5, 2020 and will integrate the Brazilian company's promising product into its digital spinning suite ESSENTIAL. "OptCotton" from WW Systems offers the only software system worldwide that enables an even blend of cotton for the spinning process. With this cooperation, Rieter is taking an important step forward in implementing its digital strategy and offering its customers further added value in yarn production.

"OptCotton" eliminates variations in quality between cotton blends that are being prepared for the spinning process. In this way, standardized quality yarn can be produced efficiently in the spinning process. From the arrival of the bales in the warehouse to their use in the blowroom line, “OptCotton” manages the entire blending process with no need for categorization. This results in increased efficiency in storage and logistics as well as machine performance.

Integration into the digital spinning suite ESSENTIAL
By integrating this solution, Rieter strengthens its digital spinning suite ESSENTIAL. Access to bale-related fiber data and raw material information opens up new possibilities for controlling the spinning mill. In combination with the existing modules ESSENTIALbasic, ESSENTIALmonitor, ESSENTIALmaintain and ESSENTIALpredict, this optimizes the entire spinning process and raises digital intelligence to a new level.

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

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

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

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

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

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

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

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

Penn Textile Solutions/Penn Italia - international company producing and developing innovative fabrics through warp and weft knitting technologies, Tessitura Colombo Antonio, famous for the processing of lace and ribbons dedicated to the world of corsetry, Elastici Besana specialized in the production of narrow elastic for corsetry and underwear, have been working together to expand the frontiers of sustainable manufacture practices and to offer an innovative collection, a new set of eco high tech innovations delivering a responsibility concept including also the end of life: ECONNECTION.

The responsible ECONNECTION collection, in which the words ECO and CONNECTION mixed to underline the importance of connect and come together for a sustainable project, features:

• 7 advanced knitted stretch fabrics by Penn Textile Solutions/Penn Italia,
• 3 precious laces by Tessitura Colombo Antonio
• 3 functional bands by Elastici Besana

The project opened up the door to new generation of ingredients such as:

• ROICA™ V550 made by leading fiber manufacturer Asahi Kasei, a premium sustainable stretch yarn that at the end of his life smartly breaks down without releasing harmful substances in the environment according to Hohenstein Environment Compatibility Certification and also boasting the Gold Level Material Health Certificate by Cradle-to-Cradle Product Innovation Institute** as it has been evaluated for impact on human and environmental health.
• Amni Soul Eco®, the world’s first biodegradable in anaerobic conditions polyamide 6.6 yarn that degrades in around 5 years* after disposing in landfill, developed by SOLVAY and produced and distributed in Italy by FULGAR.

• Significant recovery in order intake in third quarter 2020
• Order intake of CHF 425.1 million after nine months
• COVID crisis management in place
• Continuous implementation of the strategy
• Outlook 2020

The market recovery, which Rieter reported in June 2020, has continued. This is reflected in capacity utilization at spinning mills worldwide, which Rieter monitors. In April 2020, the proportion of producing spinning mills was around 40% while at the end of September 2020 this was around 90%. Against this backdrop, the Rieter Group increased order intake in the third quarter of 2020 to CHF 174.4 million (2nd quarter 2020: CHF 45.7 million). In the first nine months of 2020, the Rieter Group achieved a cumulative order intake of CHF 425.1 million (2019: CHF 524.5 million). Compared to the previous year period, this represents a decline of 19%.

Order Intake by Business Group

Due to the positive development in the third quarter of 2020, order intake at the Business Group Machines & Systems reached a total of CHF 234.5 million in the first nine months. The reason for the relatively small decline of 8% compared to the previous year is that the new machinery business was already characterized by investment restraint in the first three quarters of the year 2019. The Business Group Components recorded a reduction of 33% to CHF 116.6 million while the Business Group After Sales posted an order intake of CHF 74.0 million, a decrease of 23%. This illustrates the effects of low capacity utilization at the spinning mills, especially in the second quarter of 2020 as a result of the COVID-19 pandemic. The order backlog as of September 30, 2020, was around CHF 515 million (September 30, 2019: CHF 285 million). Cancellations were in the normal range of around 5%.

COVID Crisis Management in Place

Rieter has quickly implemented comprehensive COVID crisis management. Priority is being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide and the order backlog is being processed largely as planned. Rieter has introduced 40% short-time working in Switzerland and Germany for the second half of 2020. Similar measures were implemented worldwide within the scope of the available legal options. As of September 30, 2020, Rieter had liquid funds of CHF 216.7 million and unused credit lines in the mid three-digit million range in order to ensure liquidity. At the end of September 2020, net debt of CHF 1.2 million was disclosed.

Continuous Implementation of the Strategy

In recent years, Rieter has consistently implemented the strategy with the focus on innovation leadership, strengthening the business on the installed base and optimization of the costs. The company intends to forge ahead with the strategy in the coming months in order to strengthen the market position for the time after the COVID-19 pandemic. The Rieter CAMPUS is an important element of Rieter’s innovation strategy. Depending on the business situation, construction work is due to begin in the first half of 2021.

Outlook 2020

As already announced, in terms of sales and profitability Rieter expects a stronger second half of the year compared to the first half of 2020. Nevertheless, due to the deferral of deliveries by customers, Rieter will also conclude the second half of the year − and thus the full year 2020 − with a net loss. Due to the existing uncertainties, it continues to be difficult to forecast sales and profitability for the second half of 2020. For this reason, Rieter refrains from providing more specific information for the full year 2020.

• New strategic sales partnership for the Sanitized® antimicrobial polymer additives in Italy

Italy and Switzerland - SANITIZED customers in the polymer industry in Italy will profit from FERRO-PLAST’s expertise and established sales network. The Sanitized® antimicrobial additives for hygiene function and material protection for polymers will be marketed in Italy by our new sales partner.

SANITIZED and FERRO-PLAST, two experts in their fields with similar understanding of values, have joined forces; both deal in high-performance products for the Polymer industry combined with the best possible service, which begins with the conception of value-added products and their optimum use. This collaboration with SANITIZED is a good fit for the portfolio as both companies focus on innovative, customer-specific solutions.

With the addition of the antimicrobial Sanitized® additives at FERRO-PLAST, the Polymer industry gets an overall package, offering more than just products for hygiene function and material protection. As an addition to the core product services, SANITIZED supports development and production, regulatory queries and marketing through the use of the Sanitized® Ingredient Brand, which characterizes the end products within their differentiation and emphasis on quality.

The antimicrobial additives for Polymers from SANITIZED protect end products from bacterial infestation, growth of algae and mildew, material degradation, biofilms, pink stain, and odors caused by microbes. The Polymer industry uses the antimicrobial additive in flooring, industrial coatings, artificial leather, roof membranes, pool liners, tarpaulins, and all extruded products.

“FERRO-PLAST is proud to represent the prestigious and important brand Sanitized® in Italy. We are confident to have the necessary experience and skills to successfully promote these products which are leaders in the hygiene field. We are sure that especially in this particular moment, they bring a substantial support to the Italian plastic market”, says FERRO-PLAST’s Managing Director, Rodolfo Di Nardo. “The technical competence and the strong customer focus impress me about FERRO-PLAST”, confirms Michael Lüthi, Head of BU Polymer at SANITIZED AG.

• Technology, creativity and sustainability
• Recycled materials, bright colours, eclectic shapes: excellence is in the details, and the new creations by the Italian-Swiss group have plenty to say.

Mendrisio – Looking at the new Fall-Winter 2021-2022 collection of the Riri Group, it almost seems as if the difficult months to which the pandemic has forced the whole world, have been another new – though unwanted – challenge for the Italian-Swiss company. A testbed that sparked the mind and lit the fire of creativity. Therefore, today, the brand ingredient which for over 80 years has embellished the
garments designed by major fashion system brands with top-quality zips and buttons, also introduces a wide range of heterogeneous creations, intended to cover different aesthetic and functional requirements on the market.

This collection has been divided into three macro-topics; it is a new chapter in the history of the Group.

LIFE SERVING
Keyword: sustainability. Or, more romantically, “Reuse with love”. From the use of materials produced using organic waste and recycled plastics to actual destocking – the re-introduction on the market of unsold items to give them new life through a restyled shape: the topic of “life serving”, for Riri, translates into the meticulous and constant search for materials with a low environmental impact and in the committed attempt to reduce the use of plastic to a minimum. This is why the Group has decided to use recycled polyester tapes, made with new organic cotton, pullers coated with cork, created using 100% recycled plastics or rubber taken from the sole of shoes. Stainless steel – an exceptionally resistant and sturdy material, as well being subject to no galvanic treatments and highly recyclable – characterizes chains and pullers, while the Nylon zip consists of fully recycled tape and chain, and Decor introduces a new 100% polyamide version. On the button side, “life serving” includes buttons with a cork coating, the Zero button with coating made of recycled Meryl polyamide and the F4 with a 100% recycled Nylon head and the heads made of APILON 52 (rubber made of 65% vegetable oils and energy from renewable sources) coated with microfiber from the company Alcantara.

ENGINEERING
This is definitely the most rigorous yet progressive section in the collection, drawing on technological innovation and on uncertainties related to the current situation, to play with shapes, colours and materials. Between zips and buttons there is a prevalence of squared and minimal shapes, also on the tapes of the zips through sublimation and digital printing techniques. The leading colour is grey in its variation of hues, where the insertion of coloured tones sometimes stands out. The leading material, on the other hand, is metal.

OVER SHOCK
A creative topic where “exaggeration” is the keyword, a trend whose style and character somehow remind us of Gen-Z, apart from being especially suitable for outdoors. “Over state” uses the hip hop mood and settings of the Nineties, taking them to the extreme, enlarging shapes and focusing on bright and fluorescent colours such as purple, yellow, blue, orange or green. An example of this is Storm Evo, a zip which is popular in the outdoor sector for its high levels of water resistance and strength, which features a new electric blue chain and tape with reflecting side strips. Also outstanding in terms of originality is the new purple puller, with its anti-theft shape, fixed onto a fluorescent yellow chain. The perfect expression of this category are zippers such as Decor, Nylon and Aquazip, especially recommended for the outdoor sector in general.

COLLECTION HIGHLIGHTS: RESTYLING AND INNOVATION
All the macro-categories selected for the FW 21-22 seasons are included in some special product innovations, most notably the even more minimal and thin shapes of some buttons and the introduction of five different colours for the small synthetic ring, a real point of strength in Cobrax pressure buttons. Also the range of magnetic buttons is complemented by the addition of two extra snaps. As regards zips, the Riri Group team has been working on careful restyling of shapes, more specifically in the shapes of Decor zip bodies – ideal for the luggage industry – further improved from both an aesthetic and functional viewpoint.

“When it comes to working on new developments, we always start from new ideas and the constant research that starts from a concept that becomes reality, by increasingly raising the bar of sustainability” said Alice Tonello, R&D and Marketing Director of Tonello. “The research for technologies and solutions have always been part of our DNA, is a daily commitment to the environment, the market, our people and all human beings with their needs.  Based on this vision, two revolutionary patent-pending process, are born, Wake and OBleach, that allow to create incredible and totally responsible effects on garments” continued Alice Tonello.

This is how The Laundry (R)Evolution was born: a radically new conception thought to simplify and optimize the entire garment finishing process.

It involves only 2 technologies in the entire finishing cycle, reducing waste and optimizing resources: LaserBlaze, and The All-in-One-System. Metro is used, a software that processes real data, in real time to check all laundry consumption, optimizing processing times and improving performance.

The All-in-One System performs all washing operations by integrating 4 sustainable technologies into a single machine: ECOfree 2, which uses ozone in both the water and air; NoStone® for authentic and pumice-free stone-wash effects; UP, for washing processes with at least 50% less water; Core, a nebulizing system improving performance and reducing water consumption.

In terms of effects, the latest results of the Laundry (R)evolution are OBleach and Wake.

OBleach is the new Tonello patent-pending process which, by using only ozone, “returns to the future” with an authentic, sustainable and cool Bleach.

Wake is the first totally natural dyeing system. In fact, it uses only plants and vegetable waste, organic items like flowers, berries and roots left to dry and infuse, without harmful chemicals additives.

Tonello will be live during DenimsandJeans Virtual Show on October 14th and 15th.

• World Cotton Day on 7 October Highlights the Importance of Cotton for Development Policy

Bremen - Stemming from a 2019 initiative of the African Cotton-4 countries Benin, Burkina Faso, Chad and Mali, World Cotton Day will take place this year on 7 October. The event is organised by the Geneva-based World Trade Organisation (WTO) and is supported by the Food and Agriculture Organisation of the United Nations (FAO), the United Nations Conference on Trade and Development (UNCTAD), the International Trade Centre (ITC) and the International Cotton Secretariat (ICAC). The Bremen Cotton Exchange is also involved.

“Cotton is often underestimated because it is so natural. Behind it are millions of people, for example many farmers, field workers, employees in ginning factories, logistics providers and traders. We want to honour their achievements,” said the President of the Bremen Cotton Exchange, Stephanie Silber.

According to the WTO, the aim of World Cotton Day is to highlight the global economic importance of cotton and to raise awareness of the raw material by recognising the work of everyone involved in its cultivation, processing and trade. At the same time, within the framework of international cooperation, it is hoped that supporters and investors can be found to aid with technological and economic progress within the cotton value chain.

This time, the entire world cotton community will be involved in World Cotton Day on Wednesday, 7 October 2020. A wide variety of campaigns and events are taking place everywhere to draw attention to the importance of cotton and its possible uses.

Cotton is one of the most relevant agricultural raw materials in the world. Around 26 million tonnes of it are harvested annually. Approximately 150 million people in almost 80 countries around the world live from the cultivation of the natural fibre. A large number of these live in developing countries, where cotton cultivation is of particular importance as a cash crop.

Cotton is known as an agricultural product that is turned into a textile. The raw material is indispensable in fashion and clothing – and has been for thousands of years. But the use of cotton now goes far beyond textiles. For example, cosmetic products such as hand creams and hair shampoo are made from the oil of cotton seeds. The raw material is also used in the manufacture of banknotes, furniture and technical textiles, as well as in medical technology.

Against the background of the current discussion on sustainability and sustainable consumption, the role of natural fibres is becoming even more important. Cotton is biodegradable and a renewable resource. It can be grown again and again in agriculture through cultivation in crop rotation. This secures incomes and enables efficient value creation within the global production and processing chain.

The Bremen Cotton Exchange will actively support World Cotton Day with cross-media coverage. In addition, in time for World Cotton Day, three thematically different, emotionally appealing short films about cotton will be launched. They are aimed at consumers as customers of the textile and clothing trade and provide information about the benefits and properties of cotton and answer questions about its sustainability. In keeping with the times, they will be published via virtual media.

During the Innovate Textile & Apparel (ITA) virtual textile machinery show which will run from October 15th-30th 2020, Monforts will be emphasising its leadership position in three key fields – advanced coating, denim finishing and fabric sanforizing.

With its multi-head capability, the latest Monforts texCoat coating system provides flexibility with an unprecedented range of options and a wide range of modules available.

Refinements
“Since we acquired the coating technology that our systems are based on we have made a lot of refinements and all of them are reflected in higher coating accuracy and the resulting quality of the treated fabrics,” says Monforts Head of Technical Textiles, Jürgen Hanel.
“Our systems have the shortest fabric path from the coating unit into the stenter and we have all variations of coating application systems too – and all of these options are available in wider widths, with the engineering and manufacturing from a single source here in Europe.”

CYD
Denim finishing is meanwhile a field in which Monforts has an undisputed lead and it has been working closely with its many partners in the key denim manufacturing countries of Bangladesh, Brazil, China, India, Mexico Pakistan and Turkey to develop advanced solutions. The latest of these is the CYD yarn dyeing system.
“CYD is based on the proven Econtrol® dyeing system for fabrics*,” explains Monforts Head of Denim Hans Wroblowski. “It integrates new functions and processes into the weaving preparatory processes – spinning, direct beaming, warping and assembly beaming, followed by sizing and dyeing – in order to increase quality, flexibility, economic viability and productivity. The CYD system has been developed in response to a very strong market demand.”

Pre-shrinking
Monforts has also recently delivered a significant number of its latest Monfortex sanforizing lines to customers around the world.
Sanforizing is vital to final fabric quality, pre-shrinking it by compressing prior to washing, to limit any residual or further shrinkage in a made-up finished garment to less than 1%, for perfect comfort and fit over an extended lifetime.

As with industry-leading Montex stenters, Monfortex lines benefit from the latest Qualitex 800 control system which allows all parameters to be easily automated via the 24-inch colour touchscreen, including production speed, control of all fabric feed devices, rotation spray or steaming cylinder options, the width of the stretching field and the rubber belt pressure. Up to 10,000 separate process parameter records can be generated and stored by the data manager.

*Econtrol® is a registered mark of DyStar Colours Distribution GmbH, Germany.