From the Sector

Brown Wrote to President Outlining Critical Steps White House can Take Now to Address Shortage of Personal Protective Equipment

 U.S. Sen. Sherrod Brown (D-OH) hosted a news conference call to discuss his plan for addressing the shortage of personal protective equipment (PPE) needed by healthcare workers on the frontline of keeping Americans healthy and safe during the coronavirus pandemic.

This weekend, Brown wrote to President Trump outlining several steps the Administration should take immediately to address the shortage and ramp up manufacturing of these critical medical supplies.

In his plan and in his letter to the President, Brown lists nine steps the Administration could take immediately, including:

1. Designate a government official who can serve as a point person responsible for coordination the acquisition and development of PPE, medical devices, and other supplies necessary to fight the coronavirus pandemic. 
2. Establish a PPE and medical device assessment and database to monitor the supply and anticipated needs for PPE, ventilators, diagnostic test kits, and other needed medical supplies to respond to the coronavirus pandemic. 
3. Publish a list of PPE, medical device, and general medical supply needs to respond to the coronavirus pandemic. 
4. Establish a hotline capable of handling significant call capacity that will provide U.S. producers centralized information about the results of the national assessment and the current need for PPE, devices, and other health care supplies. 
5. Provide immediate funding to manufacturers to purchase equipment, retool machinery, hire additional workers, and cover any other expenses needed to increase production of PPE and necessary medical devices and supplies.
6. Streamline contract and certification procedures to ensure production and delivery of materials are not delayed due to paperwork constraints.
7. Provide critical protections for workers who are making PPE, medical devices, and necessary supplies to receive a waiver from any shelter-in-place requirements to allow workers to volunteer to go to work in these critical industries. 
8. Provide purchase guarantees and delivery assistance of product to the communities and health care facilities that need the products most. 
9. Support companies that have the capacity to sterilize reusable equipment to alleviate the existing PPE shortage. 

In his plan, Brown also pointed out important legislative actions that will help ramp up production of these critical supplies, including expanding the strategic national stockpile authority, substantially increasing Defense Production Act funding and strengthening domestic preferences.

Textile innovator and specialty chemical producer Devan answers questions regarding anti-viral textile finish solutions following the growing spread of the COVID-19 outbreak.

Over the past few weeks, Devan has received a lot of questions regarding an antiviral solution for textiles against Sars-COV-2, the virus that causes COVID-19. “Not a big surprise since we put BI-OME AV forward 3 years ago. Testing has been done in cooperation with Institut Pasteur de Lille”, says Devan CEO Sven Ghyselinck. Devan studied enveloped viruses (e.g. H1N1, Corona-types, etc.) as well as naked viruses (e.g. Rotavirus). For both virus families, BI-OME AV showed strong to excellent activity in wet state.

In the first instance, the company wants to focus on professionals who need to stay working such as policemen, logistics workers, shop employees, day-care workers, … A common complication of respiratory viral disease can be a secondary bacterial infection. Professionals could be helped with either an anti-bacterial on their facemask to reduce the chance for these secondary bacterial infections, for better hygiene and less odor build-up. On workwear, a combination of a virus spread reducing and antibacterial solution could help as these garments are typically used during long hours, are non-disposable and most likely will be washed at home.

Devan has solutions which withstand washing while keeping its performance. BI-OME as a liquid product is EU BPR, Turkish BPR and US EPA registered. Depending on the rash region, commercialising treated articles be subject to additional local registration procedures.

As a result of the global COVID-19 crisis, the Lenzing Group expects based on recent developments a negative impact on its textile sales volume. The potential impact cannot yet be reliably estimated, as it strongly depends on the duration of the crisis as well as its further effects on the global economy and textile markets. Consequently, Lenzing suspends its result forecast for 2020 as disclosed on March 12, 2020, when it expected the result for 2020 to be below the level of 2019. In order to mitigate a potentially stronger than expected decline in earnings, Lenzing has already started to implement cost saving measures across its sites globally.

Labels and small accessories stand together for the company’s great passion for leather, featuring a mix of eclectic inspirations, complemented by a variety of solutions and with a new exclusive Green Book, with a very sustainable approach.

A creative selection of proposals enriched with a new line of completely green products defines the SS2021 collection by Vivolo. Sustainability is the running theme, thanks to the development of concepts that focus on the combination of zero-impact processing techniques and state-of-the-art materials, bringing to life RE Vivolo.
This special Green Book gathers a selection of products that provide a sustainable interpretation of the beauty of Vivolos work. The selection of specific raw materials defines five micro-areas in terms of options: leather (recycled, solvent-free and vegetable-tanned), eco-leather (solventfree and jacron), technical solutions (silicon and recycled post-industrial polyurethane), fabrics (organic cotton, recycled cotton, felt obtained from the recycling of post-consumer plastic materials) and the brand new plant-based options (Apple Skin, Piñatex® and Bananatex®). In parallel with this eco-line, the collection presents the evolution of more classical option.
The heritage style results in the selection of new designs, made thanks to an combination heat embossing and hand painting enhancing the quality of leather through the creation of miniature works of art. An additional highlight is the embroidery section.
Technical inspirations remain the most direct expression of the research by the inhouse R&D team. From the use of high-performance materials to the implementation of ideal processing techniques, the mood emphasizes the high-tech character of these options, through mirrored, reflective and  iridescent finishings along with a fluorescent color palette. Silicon and polyurethane make again in this season their appearance.

The collection comes to a close with the accessories – patches as well as  drawstrings, puller, buttons and cord stoppers, along with many others – conceived to become the added detail to embellish and enhance outerwear and knitwear. Once again, Vivolo proves its ability in  interpreting a style that transcends time, representative of the Made in Italy tradition along with an unparalleled approach to production.

• First fiber producer to have an approved science-based target – CO₂ neutrality by 2050
• Breakthrough in REFIBRA™ technology – worn textiles can also be used as fiber raw material
• Pioneer in the introduction of blockchain technology for fiber recognition
• On track to meet all sustainability targets

Lenzing – Just ahead of the “Day of Forests ” on March 21, which the FAO (Food and Agricultural Organization of the United Nations) introduced in the 1970s in response to global deforestation, the Lenzing Group presents its Sustainability Report 2019. This sets out how the company is actively dealing with the global challenges.

Lenzing produces fibers from the renewable raw material wood and is well known among its customers and partners in the global textile and nonwoven fabric industry for the clear position it takes as a sustainable producer. It is no accident that the new report is appearing on the International Day of Forests. Lenzing’s sustainable practices in procurement, especially for wood and pulp, were once again ranked as leading in the 2019 reporting year (Hot Button Report).

“Stand up! A gainst business as usual ”

Under the motto “Stand up! Against business as usual ”, Lenzing emphasizes its wider responsibilities over and above its products. Business - as - usual scenarios have to be overcome, in particular for climate protection. With a science-based target, Lenzing is taking action to master the problems caused by climate change. The Lenzing Group is committed to reducing its greenhouse gas emissions per ton of product by 50 percent by 2030 (baseline: 2017). The Science-Based Target s initiative has approved Lenzing’s climate target as science-based.

Breakthrough in REFIBRA™ technology

One of Lenzing’s strategic principles under its “Naturally positive” sustainability strategy and a focus in the 2019 Sustainability Report is the circular economy. To address the enormous textile waste challenges of industry and society, Lenzing has developed a unique recycling technology branded REFIBRA™. This technology enables garment production waste to be reprocessed into fibers. 

• Move is in line with global growth strategy with a strong focus in the Asia Pacific region
• Zhejiang plant will be able to produce 50,000 tons of nylon compounds annually in the longer term
• Plant will be located in the convenient transportation port area of DuShan Pinghu city

DOMO Chemicals, a leading producer of high - quality engineering materials for a diverse range of markets, has announced plans for a new state - of - the - art plant in Zhejiang, China. The new plant will be capable of producing 50,000 tons of sustainable and innovative engineered nylon compounds each year. The company signed a new factory project through “cloud contract” with PingHu DuShan port Economic Development District on February 20, 2020. Production is expected to commence in the fourth quarter of this year.

DOMO Chemicals will invest €12 million in the new plant, which will have more than 11,500 m 2-floor space. The company plans to install multiple production lines at the first stage of development, which would offer an estimated capacity of 25,000 tons/year. There will be enough additional space available to cope with future demand requirements. The move is in line with the company’s global growth strategy with a strong focus on the Asia Pacific (APAC) region.

Today, environmental not-for-profit organization Canopy, third-party auditor NEPCon, and Kelheim Fibres released the results of Kelheim’s CanopyStyle Audit. The company’s current supply chain is confirmed as low risk of sourcing wood from Ancient and Endangered Forests or other controversial sources.

Key findings of the audit include:

• The company is at low risk of sourcing from Ancient and Endangered Forests;
• The company has a limited fibre basket and uses a significant proportion of FSC-certified fibres in its viscose products; and
• The company has begun supporting forest conservation solutions in key areas of Ancient and Endangered Forests.

In the spirit of continuous improvement, Canopy recommends that the company increase the proportion of FSC-certified fibre, and make efforts to source 100% FSC, as well as continue to invest in research and development of low-impact alternative fibres, with the goal of launching a fibre line that contain these products.

This audit, which reflects a snapshot in time, is to be conducted annually to ensure that the company continues to meet the expectations of the CanopyStyle initiative. The audit findings contribute to Hot Button Issue Report.

The public report from Kelheim Fibre’s audit evaluations is available for download here: www.kelheim-fibres.com/en/sustainability/certificates/

Diverging development in the two business units impact fiscal year 2019 of SGL Carbon – Group guidance for 2020 confirmed

• Consolidated sales revenues in fiscal year 2019 up by 4 percent to around 1.1 billion euros
• Consolidated recurring EBIT down by 25 percent to 48 million euros; record results of graphite specialities business did not fully compensate for the weak development in the carbon fiber business
• Composites – Fibers & Materials (CFM): Cyclical und structural weaknesses impact the result of the market segments Wind Energy, Textile Fibers and Industrial Applications, which have limited strategic significance in the medium term
• Graphite Materials & Systems (GMS): Sales and earnings on record level due to strong growth in the market segments Semiconductors and Automotive
• Non-cash impairment charge of around 75 million euros was recorded at CFM in the third quarter of 2019
• Free cash flow significantly improved
• Issue of a new corporate bond and early redemption of the 2015/2020 convertible bond has significantly improved the maturity profile
• SGL Carbon confirms guidance for fiscal year 2020: sales expected slightly below previous year; recurring EBIT approximately 10 to 15 percent below previous year level
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: “The financial development of the fiscal year 2019 conceals the fact that our strategic orientation is correct. This is evident from our growth and the increasing number of contracts and projects we acquired in our strategic core markets. Main drivers are the topics of sustainable mobility and energy as well as digitization. Therefore, we expect that we can grow our consolidated revenue by a mid to high single-digit percentage per year on average between 2020 and 2024.“

The fiscal year 2019 developed very differently in the two business units of SGL Carbon. The record results in the graphite specialities business could not fully compensate for the weak development in the market segments Wind Energy, Textile Fibers and Industrial Applications in the carbon fiber business. Group sales grew by 4 percent to 1.1 billion euros. Recurring Group EBIT declined by 25 percent to 48 million euros. Due to the ongoing weakness in the market segments Textile Fibers and Industrial Applications the business unit CFM recorded a non-cash impairment loss of 75 million euros in the third quarter of 2019. With minus 90 (prior year: plus 41) million euros, consolidated Group result declined significantly compared to last year’s good results. The Group confirms its guidance for 2020 published in October 2019.

Group sales are expected to decline slightly compared to the prior-year level, whereas Group recurring EBIT is expected to reach a result around 10 to 15 percent below the prior-year level. Consolidated net result of the Group in 2020 should strongly improve compared to prior-year level to a low double-digit loss.

A BREAKTHROUGH TECHNOLOGY FOR DYEING POLYESTER AND ITS BLENDS

Huntsman Textile Effects introduces TERASIL® BLUE W, the latest addition to our TERASIL® W/WW range of wash fast disperse dyes. TERASIL® Blue W is designed to meet all major requirements for high-performance sportswear and athleisure wear. TERASIL® BLUE W stands out as the leading disperse wash fast blue dye in the market which is not sensitive to reduction, leading to higher reproducibility, right-first-time results and operational excellence.

Polyester fiber has become the fiber of choice in the textile industry, the demand for polyester and man-made fibers is expected to rise over the long term, as sports and athleisure apparel markets expand around the world. At the same time, leading brands, retailers and mills are increasingly focused on achieving brilliant and deep shades, consistent shade reproducibility, as well as water, energy and cost savings.

With cutting-edge disperse dye technology at its heart, TERASIL® BLUE W is developed by Huntsman Textile Effects to provide the leading solution for meeting industry’s wash fastness requirements. TERASIL® BLUE W offers an attractive shade and high build-up for deep blues which stays vibrant. TERASIL® BLUE W also provides quality assurance as products are bluesign® approved and suitable for STANDARD 100 by OEKO-TEX® certified textile products(1).

Stephan Trubrich assumed the new role as Vice President Capital Markets, effective as at March 01, 2020. In his capacity, Trubrich will oversee the Lenzing Group’s capital markets activities, including Investor Relations and ESG (Environmental, Social & Governance) Reporting. He will report directly to Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

Stephan Trubrich has more than 9 years of experience in the field of equity research with Kepler Cheuvreux, UniCredit and Deutsche Bank. For many years, he has been Austria’s top ranked equity analyst. Trubrich holds a Master’s Degree in Science in Accounting and Finance from Aston Business School, UK. He is also a CFA Charterholder.

Stephanie Kniep, Head of Investor Relations, will leave Lenzing, effective as of April 30, 2020 to pursue new endeavors.