From the Sector

• Lenzing and Södra – a long-standing partnership for systemic change
• International Textile Manufacturers Federation (ITMF) honored the two companies in the "International Cooperation" category
• EU co-funded recycling project for textiles on an industrial scale

The Lenzing Group, the world’s leading supplier of specialty fibers for the textile and nonwovens industries, and the Swedish pulp producer Södra have received the ITMF Award 2023 in the category “International Cooperation” for their joint achievements in textile recycling and circular economy. The award was presented at the ITMF Annual Conference in Keqiao, China, on November 06, 2023.

The ITMF Award 2023 is given by the International Textile Manufacturers Federation (ITMF) to recognize outstanding achievements and merits in the textile sector in two categories: ”Sustainability & Innovation“ and ”International Cooperation“. Since 2021, the two pioneers have been joining forces in textile recycling, making a decisive contribution to promoting the circular economy in the fashion industry. As part of the cooperation, the companies intend to share their knowledge with each other and jointly develop processes to enable the wider use of cellulose-based used textiles on a commercial scale.

The OnceMore® pulp from Södra, which was jointly developed further by Södra and Lenzing, is subsequently used, among other things, as a raw material for the production of Lenzing fibers with REFIBRA™ technology. The OnceMore® process makes it possible to process and recycle a blend of cotton and polyester.

ITMF paid particular tribute to the joint LIFE TREATS project (Textile Recycling in Europe AT Scale)¹,which was supported by an EU grant of EUR 10m under the LIFE 2022² program and aims to build a large-scale plant at Södra's Mörrum site in Sweden.

For more information on the ITMF Awards 2023, visit the ITMF website.

¹ Project 101113614 — LIFE22-ENV-SE-TREATS
² https://cinea.ec.europa.eu/programmes/life_en

Hologenix® is an honoree on the second annual Power Partner Awards list by Inc. Business Media. Inc.’s 2023 Power Partner Awards feature B2B organizations across the globe that have proven track records supporting entrepreneurs and helping startups grow. There were 389 companies in all who achieved top marks from clients for being instrumental in their success and made the final list. Hologenix was recognized in the Health & Wellness category, which focuses on companies that provide health and wellness products or services. In order to achieve this status, customers provided written testimonials detailing their experience in working with Hologenix as a partner.

“Our business is set up to succeed when our partners succeed, so we are grateful that our partners have affirmed the superior level of support we aim to provide,” said Seth Casden, Hologenix CEO and Co-Founder. “CELLIANT offers something unique to world-class brands looking to deliver health and wellness benefits. Our proprietary technology offers a key textile differentiator for their products, from apparel, bedding and furnishings to medical-use fabrics, bandages and wraps, transportation seating and even saunas.”

Solvay announced the future Board of Directors of SYENSQO, effective upon completion of the planned separation of Solvay into two companies – SOLVAY and SYENSQO – which is on track to be completed in December 2023.

SYENSQO’s Board will be composed of 10 members, including 6 independent members, 3 members representing the reference shareholder, Solvac, and the company CEO. They have deep expertise in specialty industries, international business operations, risk management, corporate governance, finance and clean technology.

The following individuals will serve on the SYENSQO Board of Directors:
Rosemary Thorne will serve as independent Director and Chair of the SYENSQO Board, as well as Chair of the Board’s Finance Committee. She is currently an Independent Director on the Solvay Board of Directors, appointed in 2014, and Chair of the Board’s Audit Committee. She is also an Independent Director on the Board of Merrill Lynch International (UK), a wholly-owned subsidiary of Bank of America, serving as Chair of the Audit Committee. Ms. Thorne has decades of financial leadership experience across a wide range of industries. She previously served as Chief Financial Officer at J. Sainsbury, the UK’s largest supermarket chain at the time; Bradford & Bingley; and Ladbrokes. Ms. Thorne previously sat as an Independent Director on the Boards of Royal Mail Group, Cadbury Schweppes, Santander UK, First Global Trust Bank and Smurfit Kappa Group.

Dr. Ilham Kadri will serve as Chief Executive Officer and member of the Board of Directors of SYENSQO. She is currently CEO and President of the Executive Committee at Solvay. Ms. Kadri has successfully led the turnaround of Solvay, delivering double-digit EBITDA growth and 18 consecutive quarters of positive free cash flow, deleveraging the balance sheet and promoting superior people engagement. She is an independent Board member at A.O. Smith and L’Oréal. She is active in non-profit organizations, as Chair of the World Business Council for Sustainable Development (WBCSD), member of the steering committee of the European Round Table of Industrialists (ERT) as well as a permanent member of the World Economic Forum’s International Business Council (WEF). Ms. Kadri has extensive leadership experience across a variety of industries in four continents and with leading industrial multinationals, including Shell, UCB, Huntsman, Dow, Sealed Air. Prior to Solvay, she was CEO and President of Diversey in the USA, led the company’s return to profitability and resulting spin off and divestiture to Bain Capital. She founded two non-Profit foundations: the Solvay Solidarity Fund in Belgium in 2020 which supported more than 7000 families affected by Covid-19 and natural disasters; and founded the ISSA Hygieia Network in 2015 in the USA, to help women in the cleaning industry. She received two Doctor Honoris Clausa from EWHA University in Korea and Université de Namur in Belgium.

Julian Waldron will serve as independent Director and Chair of the Audit Committee. He currently serves as Deputy Executive Chairman of privately-held Albea Group, a global beauty and personal care packaging company which operates 35 facilities in Europe, Asia and the Americas. Mr. Waldron has held senior leadership roles at several leading listed companies in the industrial, technology and services sectors and brings a wealth of expertise in finance and business operations. Prior to joining Albea in 2022, he was Chief Financial Officer of Suez for three years after serving as Chief Financial Officer and subsequently Chief Operating Officer of Technip. He started his career at UBS Warburg where he spent 14 years. Mr. Waldron also served as an independent Board member and Chairman of finance, risk and investments at Carbon Clean, a privately-owned carbon capture company dedicated to achieving net zero.

Heike Van de Kerkhof will serve as independent Director and Chair of the Nomination Committee. She currently sits on the Board of OCI N.V.. Ms. Van de Kerkhof brings more than 30 years of experience in the chemicals, oil & gas and materials industries, having served in numerous leadership roles around the globe. From 2020 to 2023, she was Chief Executive Officer of Archroma Management, a global specialty chemicals company. During her tenure, she successfully completed the transformational acquisition of Huntsman’s Textile Effects business. Prior to her role at Archroma, Ms. Van de Kerkhof served as Vice President of Lubricants, Western Hemisphere at BP, and held positions at Castrol, The Chemours Company, and Neste Corporation. She also held many leading roles within DuPont over 18 years.

Matti Lievonen will serve as independent Director and Chair of the Compensation Committee. He is currently an independent director on the Solvay Board, appointed in 2017. Mr. Lievonen is a proven executive in the energy, forestry, power and automation industries with an extensive track record of leading businesses through climate transition. For over ten years until 2018, he served as Chairman and Chief Executive Officer of Neste Corporation, a global leader in next-generation renewable fuels and chemicals. During his time at Neste, Mr. Lievonen successfully promoted the development of clean fuels as well as Finland’s bioeconomy strategy in advancing renewable transportation fuels. He has also been involved with organizations such as Fortum Board, SSAB, Nynäs AB, Ilmarinen, and the HE Finnish Fair Foundation. Until 2021, Mr. Lievonen was also Chairman of the Board of Directors at Fortum. He has been recognized for his admirable leadership and expertise, and in 2016 was awarded an Honorary Doctorate of Technology by the Aalto University Schools of Technology.

Dr. Françoise de Viron will serve as non-independent Director, Chair of the ESG Committee and Vice-Chair of the Board. She is currently a director of the Solvay Board, appointed in 2013. Ms. de Viron is a regarded academic leader and has extensive experience in innovation, R&D and qualitative research. She is a Professor Emeritus at the Faculty of Psychology and Education Sciences and Louvain School of Management at UCLouvain in Belgium where she has been an Academic Member of various groups at UCLouvain. Ms. de Viron previously served as the president of AISBL EUCEN – the European Universities Continuing Education Network. Prior to her university position, from 1985 to 2000, she was in charge of developing Artificial Intelligence applications at Tractebel S.A. (now Tractebel-Engie).

Roeland Baan will serve as independent Director. He currently serves as President and Chief Executive Officer of Topsoe, a privately-held leading provider of clean energy and petrochemical technologies. He is also Chairman of the Supervisory Board of SBM Offshore NV. Roeland Baan has extensive experience in supply chain management, M&A, business development and operations management. Prior to joining Topsoe in 2020, he was President and CEO of Outokumpu and has held several executive roles at global organizations such as Aleris International, ArcelorMittal and SHV NV. He spent over 16 years in various roles across the globe at Shell, living in South America, in Africa and in the United Kingdom.

Edouard Janssen will serve as non-independent Director. He is currently a Director on the Solvay Board, appointed in 2021. Earlier this year, he was appointed Chief Financial Officer of D’Ieteren Group, a European leader in automotive distribution services. Mr. Janssen is also a Board member of privately-held Financière de Tubize and Union Financière Boël, as well as Co-Founder and Chair of Trusted Family. Mr. Janssen is active in academics, as Vice-Chair of the International Advisory Board of the Solvay Brussels School of Economics and Management and on the advisory board of the INSEAD HGIBS. He brings expertise in finance, strategy, entrepreneurship, business management, planning and marketing. He has served as Solvay’s Vice President in strategy and M&A between 2019 and 2021, and prior to that, he was the US-based General Manager for North- and Latin America at Solvay’s Aroma Performance Global Business Unit.
 
Dr. Mary Meaney will serve as non-independent Director. She is currently a member of the Board of Directors and of the Audit Committee of Groupe Bruxelles Lambert SA. She also sits on the Board of Directors and the Remuneration Committee of Beamery, the privately-held talent management company. She is a member of the Board of Directors and of the Finance Committee of Imperial College, London.Dr. Meaney will bring expertise in Strategy, M&A, and change management, which she acquired over a 24-year career at McKinsey. She was a Senior Partner, served on the McKinsey Shareholders Council and led McKinsey’s global Organization practice.

Nadine Leslie will serve as independent Director and is based in the United States of America. She is currently a member of the Board of Directors of Provident Financial Services , as well as a Non-Executive Director of Seven Seas Water Corporation, a water and wastewater treatment multinational company. She also sits on the Board of Trustees of Hackensack Meridian Health Network and is active as strategic consultant for civil engineering firm T&M Associates. Over a 22-year career at Suez, Ms. Leslie held several leadership positions, the last one being Chief Executive Officer of Suez North America, until 2022. Previously she served as Executive Vice President Health & Safety.

Perstorp has advanced to a gold medal by EcoVadis for the year 2023. This means that, when it comes to sustainability performance, Perstorp now ranks in the top 5 percent of the industry.

Since its founding in 2007, EcoVadis has grown to become the world's largest and most trusted provider of business sustainability ratings, creating a global network of more than 100,000 rated companies.

"EcoVadis today is the standard for ESG ratings within the chemical industry and is the selected partner for sustainability assessments for Together for Sustainability. The fact that we've received more than 100 inquiries from customers seeking our EcoVadis reporting in recent years shows the value it brings to the value chain," says Anna Berggren, Vice President Sustainability.

Perstorp showed progress in three of the four evaluation areas during 2023 –– Environment, Labor & Human Rights, and Sustainable Procurement.

"We have seen advancements in the most heavily weighted areas Environment and Labor & Human Rights,” notes Berggren. “Moreover, our progress in Sustainable Procurement places us among the top 4 percent of chemical companies globally. It has been an amazing effort from many parts of the company that contributed to us obtaining this gold medal.

Carbios announced the strengthening of its leadership team with the appointment of Bénédicte Garbil as Senior Vice President of Corporate Affairs and Sustainability. Bénédicte Garbil oversees three strategic areas: Public Affairs, Corporate Affairs, and Sustainability. In her Corporate Affairs role, she supervises Communication, Regulatory, Project Management, and Innovation Funding functions. In her Sustainability role, she oversees CSR, QHSE, and LCA functions. Bénédicte Garbil also joins the Group’s Executive Committee.

Bénédicte Garbil started as a public affairs advisor at the French Federation of Healthcare Industries before becoming Director of Public Affairs at a pharmaceutical laboratory. In 2013, she joined the public sector, first working at the General Directorate of Enterprises (DGE) as Head of the Health, Biotechnology, and Agri-food Industries Bureau, and then at the General Investment Commissioner’s Office (CGI) from 2014 to 2017 as Deputy Director of Health and Biotechnology. Her experience allowed her to gain expertise in public policies and funding innovative projects, contributing to the creation of public funding mechanisms supported by the French Program of Investments for the Future (PIA). After her public service, she led Edwards Lifesciences in France for 4 years, then founded a consulting company accompanying biotechnology and healthcare companies in their development, from valuation to market access, including industrial development in France. A graduate of Sciences Po Lille, she holds a master’s degree in health law and a university degree in pharmacoeconomics.

Rieter’s cumulative sales in the first nine months of 2023 amounted to CHF 1 092.9 million (2022: CHF 987.4 million), an increase of 11% compared to the prior-year period. In particular, supply bottlenecks eased slightly, which allowed more machines to be delivered than in the same period last year. Sales in the third quarter of 2023
were CHF 334.7 million (Q3 2022: CHF 366.8 million).

The Business Group Machines & Systems generated total sales of CHF 749.6 million in the first nine months of 2023 (+18%). The Business Group Components posted sales of CHF 206.8 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded growth of 13% to CHF 136.5 million in the first nine months of 2023.

Order intake in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts continued to weaken due to the slowdown in spinning mill capacity utilization. Rising interest rates and high energy and raw material prices also had a dampening effect.

In this market environment, the Rieter Group received orders totaling CHF 452.2 million in the first nine months of 2023 (2022: CHF 1 095.8 million). In the third quarter of 2023, orders decreased by 44% year-on-year to CHF 127.2 million (2022: CHF 226.4 million).

Rieter expects the market to have bottomed out in the year 2023 and anticipates a gradual market recovery in the course of the 2024 financial year.

As of September 30, 2023, Rieter has an order backlog of around CHF 900 million (September 30, 2022: CHF 2 000 million). The current order backlog will allow good capacity utilization at the production facilities into the coming year. The cancellation rate in the reporting period was within the usual range, averaging around 5% of the order backlog, with a slight downward trend.

In July 2023, the Group launched the “Next Level” performance program aimed at strengthening sales excellence, sharpening customer focus, improving cost efficiency in production and optimizing fixed cost structures. By taking these measures, Rieter intends to create the basis for providing an even more agile response to the cyclical nature of the machinery business. The objective of the planned initiatives is to ensure the profitable and sustainable development of the group.

The performance program includes provisions for the net reduction of approximately 300 positions in overhead functions across the group, primarily in Germany and Switzerland. The consultation processes initiated with the employee representatives in Ingolstadt (Germany) and Winterthur (Switzerland) were completed in the third quarter of 2023. The majority of these workforce reductions are expected to be implemented by the end of December 2023.

Due to the current market situation, further market- and volume-related adjustments in the range of 400 to 600 positions will be necessary, mainly in production. However, the actual number of positions to be reduced depends on the order intake in the coming months.

Rieter continues to expect that the strategic and operational measures initiated will result in one-off restructuring costs of around CHF 45 to 50 million, which will impact earnings in the 2023 financial year.

Outlook for the full year 2023 confirmed
As announced on July 20, 2023, in view of the economic situation and the ongoing cyclical market weakness, Rieter continues to expect below-average demand for new equipment in the coming months. A revival is not anticipated until the end of 2023 at the earliest. Likewise, Rieter believes that demand for consumables, wear & tear and spare parts will not recover until towards the end of 2023.

For the full year 2023, Rieter expects an EBIT margin of around 5 to 7% (including positive special effects of less than 2%) and sales at the previous year’s level of around CHF 1.5 billion.

SHIMA SEIKI MFG., LTD. of Wakayama, Japan will participate in the A+A 2023—Safety, Security and Health at Work International Trade Fair in Düsseldorf, Germany (24th-27th October 2023). On display will be the company's latest safety-related technology through its new SPG®-R pile glove knitting machine and the prototype SFG®-R next-generation glove knitting machine. Each of these machines drew attention at SHIMA SEIKI's booth at the International Textile Machinery (ITMA 2023) Exhibition in Milan.

SHIMA SEIKI's original SPG®, developed in 1979 as the world’s first automatic glove knitting machine to produce seamless pile-knitted gloves, is now reborn as a next-generation model. Pile gloves feature special traits that include cushioning, shock-reduction and thermal insulation and cold protection, making them popular especially in the field of industrial safety. Now, SPG® is redesigned from the ground up and re-introduced as the SPG®-R. The new SPG®-R features a new moveable sinker system with selectable loop presser function. Combined with a new belt-driven carriage it allows SPG® to provide efficient and reliable production of fashionable, high-quality pile gloves. Shown in 7 gauge at A+A, SPG®-R surpasses the previous generation with pioneering technology, improved capability and reliable productivity.

SHIMA SEIKI's original product on which the company was founded was the fully automated seamless glove knitting machine. While the original model evolved to become the current SFG® series, SFG®-R exhibited at A+A is its spiritual successor. With a new sinker system, a belt-driven 2-cam carriage and auto yarn carriers SFG®-R is a completely new machine for knitting gloves that conform better to the shape of the hand for improved fit. Furthermore its greater design potential offers users the opportunity to break out of the work glove market and into the fashion market. SFG®-R is shown as a prototype next-generation model in 12 gauge at A+A.

Also demonstrated will be SHIMA SEIKI's APEXFiz® design software. The importance of design software is made even more significant by the new patterning capabilities of SPG®-R and SFG®-R. Both machines now feature increased design potential that allow each of their products—pile gloves and work gloves, respectively—to expand their market into fashion. APEXFiz® is available for developing these designs. Furthermore virtual sampling on APEXFiz® is especially effective in streamlining the production process. Ultra-realistic simulation capability allows the use of virtual samples for evaluating design variations without producing actual samples for each variation, thereby minimizing the time, cost and resources normally required with sample-making, supporting smart, speedy and sustainable production.

The Board of Renewcell has appointed Magnus Håkansson as the new acting CEO. Magnus has experience from leading roles in the retail and fashion sector and from leadership in a listed environment. On Monday, October 16, he started his position, replacing Patrik Lundström, who has been the company's CEO since 2019.

Magnus Håkansson has a degree in economics from the Stockholm School of Economics and an MBA from MIT Sloan School of Management. He started his career as a management consultant at McKinsey and has since held several leading roles in global growth companies in the retail sector, as well as the pulp industry, including many years with experience from a listed environment. He most recently came from a role as CEO of MediaMarkt Sweden.

Comment from Michael Berg, Chairman of the Board of Renewcell:
"With a slower adoption in the value chain, and thus lower sales growth, than expected, the Board has decided that a new leadership in the company is necessary. I would like to thank Patrik for his contribution to the development of Renewcell, he has been instrumental in taking the company from the development stage to listing, factory construction and production.

We are very pleased that Magnus Håkansson is now stepping in as acting CEO. His experience from consumer focused companies and his solid leadership skills will add value to the company in its current phase – focusing on sales to brand companies in the clothing retail sector, where we see continued strong interest."

Archroma and Shima Seiki have expanded their partnership to bring the industry’s largest library of colors for cotton and polyester to the SDS®-ONE APEX design, planning and virtual sampling system and APEXFiz® (hereafter SDS®-ONE APEX series) subscription software.

Now offering a total of 5,760 color references, SDS-ONE APEX series has added all 1,440 colors for polyester from The Color Atlas by Archroma® to its color library of 4,320 Color Atlas colors for cotton poplin. The new polyester collection ranges from neutral earth tones to vibrant jewel tones and on-trend fluorescent colors, with shades suitable for sportswear, fashion, home furnishings, automotive textiles and more.

The extended color library in SDS®-ONE APEX series will help designers and manufacturers to visualize and evaluate their design choices on realistic fabric simulations and then put them into production with dyes and finishes that meet their desired sustainability profile. The Shima Seiki system also offers a smooth transition to machine programming for quick and accurate production, reduced waste and accelerated time to market.

Each of the 5,760 Color Atlas color references in the SDS®-ONE APEX series design software is available as a physical color standard that includes precise dyeing recipes and compliance data, as well as access to expert technical support from Archroma around the world.

“Polyester remains the most popular choice across many textile segments where high performance is a must. Users of Shima Seiki’s advanced SDS®-ONE APEX series platform will now be able to select from the industry’s largest library of colors for both cotton and polyester and, more importantly, trust that their choice can be reliably executed,” Chris Hipps, Head of Strategic Business Development, Archroma Color Management, said.

“Our colors are formulated with dyes that comply with international eco-standards and work with Archroma’s groundbreaking coloration systems, like FAST SPORT,” he continued.

Polartec, will upgrade two of its product platforms now using Biolon™ *, plant-based nylon fiber and membrane setting a new standard in sustainability for performance fabrics. Polartec®  Power Shield™ and Power Stretch™ Pro fabrics containing Biolon™ fibers and membranes will premiere this autumn.

Biolon™ is a renewable, non-GMO plant-based nylon with a 50% lower carbon footprint than virgin Nylon 6,6.  Biolon™ nylon properties  are closer to Nylon 6,6 than many recycled nylon alternatives currently on the market.  Biolon™ has re-worked a staple, making the best, better in terms of performance and sustainability. Its plant-based inputs account for approximately half (45-48%) of the nylon content in the fibers and membranes in new Polartec® Power Shield™ and Power Stretch™ Pro fabrics debuting this fall.

Ramesh Kesh, Senior Vice President – Government & Defense and Polartec at Milliken & Company said, “For a long time, many thought that sustainable options meant a loss in performance, like durability, Polartec has proved that this is not the case. Challenging a technology already considered to be at the pinnacle of performance was a big ask yet the team at Polartec rose to that challenge and we believe we have created a new standard in sustainability for performance fabrics.”