From the Sector

• Group sales increases by approximately 6 percent compared to the prior year period to 832 million euros due to organic growth in the market segments Digitization, Energy and Chemicals
• Group recurring EBIT at around 54 million euros; adjusted for a positive one-time effect in the prior year approximately on the comparable level of the prior year
• Business unit Composites – Fibers & Materials (CFM) deteriorated substantially in the third quarter 2019 due to the weak development in the market segments Textile Fibers, Wind Energy and Industrial Applications; Graphite Materials & Systems (GMS) developed better than expected on the very good level of the prior quarter reaching overall a record high level in 9M/2019
• Free cash flow from continuing operations improved significantly in the first nine months
• Impairment testing triggers a non-cash impairment charge of approximately 75 million euros in CFM in the third quarter
• Revised guidance of October 25, 2019: Recurring EBIT at CFM in a negative mid-to-high single digit million euros amount and on Group level at 45 to 50 million euros
• Countermeasures initiated to improve earnings of CFM
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: ”The structural growth drivers remain intact in our strategically relevant markets. The countermeasures to improve earnings of CFM will be implemented consistently.”

In the third quarter 2019, the business units of SGL Carbon developed very differently. While Graphite Materials & Systems (GMS) showed better than expected results, Composites – Fibers & Materials (CFM) deteriorated compared to the two previous quarters. This is attributable to the weaker development in the market segments Textile Fibers and Industrial Applications. In total, sales revenue in the first nine months 2019 grew by approximately 6 percent to reach 832 million euros. Recurring Group EBIT after nine months reached approximately 54 million euros. Adjusted for a positive one-time effect in the prior year, this was comparable to the prior year level.

In its ad-hoc notification of October 25, 2019, the company revised its guidance for recurring EBIT of CFM downwards to a negative mid to high single digit million euro amount. On the Group level the company now expects a recurring EBIT at 45 to 50 million euros. Due to the lower starting point in 2019 as well as the ongoing weakness in the market segments Textile Fibers and Industrial Applications in the business unit CFM a non-cash impairment charge in the amount of approximately 75 million euros was recorded in the third quarter 2019. In recent years acquired assets of the former joint ventures with BMW and Benteler were not affected by this impairment. In addition, the impairment charge of CFM led to a valuation allowance on deferred tax assets in the amount of 7.4 million euros. Against this background, SGL Carbon now expects a net result of approximately minus 100 million euros for fiscal year 2019.

With the increased global push for environmentally friendly and sustainable paper-based packaging solutions, Sappi has made great strides in developing breakthrough proprietary barrier technology to offer new opportunities to satisfy this need. These unique solutions enabled Sappi to closely collaborate with the world’s largest food and beverage company, Nestlé to support the launch of the YES! snack bar wrapped in recyclable paper. Sappi worked in partnership with Nestlé and packaging supplier, Constantia Flexibles to develop solutions suitable for recyclable paper production processes.

Susanne Oste, Vice President of Innovations and Sustainability at Sappi Europe commented: “Sappi has been working with leading consumer brand owners to develop and supply renewable paper-based packaging solutions understanding and supporting the goals of making their packaging recyclable without compromising on food protection and shelf life. One example of this is the new Sappi Guard range of products providing brand owners with a paper confectionery wrapper to meet market demand for more sustainable products.”

As of October 1st, 2019, the Netherlands-based global market leading manufacturer of advanced automation equipment and solutions for composites, Airborne, strengthens its activities particularly in German speaking countries, the so-called D-A-CH region, comprising Germany, Austria and Switzerland with Dr. Michael Effing from AMAC. The Dutch company is looking for specialised partnerships to develop and deepen its international business opportunities in the aerospace and automotive markets.

Airborne’s focus is on high-end composite components, at high production rates at radically low conversion costs. Airborne is building up a suite of automated solutions for the manufacturing of composites with the aim to radically reduce costs and touch labour, minimize the footprint and use of material, and improve the time to market for their clients. The company offers i.a. solutions in automated honeycomb potting, automated kitting and automated lamination of thermosets and thermoplastics. In order to develop new business opportunities in the D-A-CH region for the end-markets aerospace and automotive, Airborne is cooperating with AMAC to accelerate the process of locating suitable partnerships.

Dr. Effing, CEO of AMAC GmbH confirms: "As a first step for the establishment of Airborne on the German market, we just signed their membership at AZL in Aachen which will help to connect with over 80 companies and latest research developments. In the framework of theirstrategy to strengthen the supply to the aircraft sector, Airborne will also exhibit at the Aircraft Interiors Expo in Hamburg from March 31st to April 2nd 2020.”

A selected supply chain combined with big data model to shape a controlled eco-innovative change, for Bangladesh and the entire sector. The Kingpins Show Amsterdam (23-24 October 2019) is once again the chosen setting for GENESIS:M&J Group to present its highly innovative proposals and latest advancements in the world of garment manufacturing. The strategy behind the new approach of the Group’s leading facility is based on three main pillars: an accurate supply-chain selection, unique sustainable data control with START TO MEASURE™ system improved, and the development of safer work conditions and processes.

Confirming its prestigious partnerships with brands like Diesel, G-Star Raw, Jack & Jones, C&A and Celio, among many others, GENESIS brings on the stage of the world-renowned denim exhibition its vision to drive positive change in the sector. In the ever-changing denim and apparel scenario the company’s strategy aims at leading a forefront approach in major garment manufacturing, relying on high-quality standards and unprecedent technological innovation. The goal is not only to consolidate penetration in European markets, but also to provide an alternative model to fast-fashion standards.

Graf introduces at ShanghaiTex three novelties for the textile market: a new card clothing with up to 30% longer lifetime, a height adjustable comb and a helpful solution for card clothing management.
MULTISHARP, the unique wear resistant alloy for card clothings, increases the lifetime of metallic card clothings on the cylinder by up to 30%. Additionally, the work load of the maintenance team can be minimized by providing longer service cycles and less unplanned downtimes.

The yield on raw material can be increased without compromising the quality requirements – thanks to the continuous height adjustability of the new combs series. The continuous and exact gap setting between nipper and circular comb on each individual combing head provides customers a new level on raw material utilization. Additionally, the maintenance people will appreciate the comfortable and easy installation of the circular comb.

With the card clothing management the overall investment costs can be reduced. This is based on minimizing the operational expenses including optimizing the overall equipment effectiveness. Graf’s card clothing management prolongs the lifetime of flexible flats by up to three times without comprising on the quality parameters throughout the entire life cycle.

Suessen presents the new compacting devices for high flexibility, new weighting arms and premium rotor spinning components for excellent yarn quality.
COMPACTeasy is the new mechanical compacting device available as a plugon/ plug-off unit for any ring spinning machine type and suitable for most common applications like cotton, man-made fibers and blends. COMPACTeasy is the solution in compacting without additional energy requirement.

New EliTe is a versatile compact-spinning system with new innovative components. The customers profit from higher productivity, better quality and lower operational costs. Upgrade packages and spare parts packages enable the customers to benefit also on existing installations.

The new Top Weighting Arm HP 4080 for roving frames offers a new design for easy settings and improved stability. In addition, consistent yarn quality over the lifetime is guaranteed.

"Fulfillment Hub” presentation will feature collaborations with major brands, thought leadership sessions
Kornit Digital (Nasdaq: KRNT), a worldwide market leader in digital textile printing technology, has announced the details of its presence at PRINTING United 2019, taking place in Dallas, Texas, October 23-25, 2019.

PRINTING United brings the North American public debut of Kornit’s Konnect software, a cloud software analytics platform that provides users a single comprehensive user interface to monitor and manage their productivity. This empowers customers to receive real-time data about their operations, prioritize, assess costs, troubleshoot, and set goals from the convenience of their laptop, tablet, or smartphone.

Archroma, a global leader in color and specialty chemicals towards sustainable solutions, today announced that the company is joining the One Young World global movement and sending its first ever delegates to the Annual Summit which will take place in London, UK, from 22 to 25 October 2019.

The annual One Young World Summit convenes 2000+ bright young leaders from 190+ countries, working to accelerate social impact. At the Summit, delegates are counselled by influential political, business and humanitarian leaders such as Justin Trudeau, Paul Polman and Meghan Markle, amongst many other global figures.

The 3 Archroma delegates to the One Young World Summit 2019:

• Jane Zhu: Jane Zhu is a logistic specialist with more than 4 years of experience in customs clearance and transportation of goods.
• Raul Padilla: Raul Padilla is currently a sales manager for textile process chemicals and new markets, at Archroma in the US.
• Till Felippi: Till Felippi is a young digital business specialist with more than 10 years of experience and diverse know-how in communications, online marketing and web development.

PIAVE MAITEX, recognized as a preferred partner for the global textile industry, brings on the successful path of responsible and smart innovation and presents its unique line “AGAIN”, during the MarediModa fair in Cannes.

During the Functional Fabric Fair, the trade-exclusive event where the latest trends in fabric development for the functional textile industry are showcased, PIAVE MAITEX presents AGAIN a smart and technically advanced line, that balances performances, functionality and sustainable features, formed of highly performing jerseys. Two premium Global Recycled Standard (GRS) certified sustainable ingredients have been involved in the production of AGAIN: the premium stretch fiber ROICA™ EF – part of ROICA Eco-Smart™ Family – constructed out with more than 50% pre-consumer recycled content and perPETual high quality sustainable polyester born from a cost-effective process that reverses engineer consumer waste PET bottles.

In addition to the two key high-tech, responsible and GRS certified raw materials, the Italian manufacturer will present a new development characterized by sustainable water-saving printing, with the possibility to be color-customized. Moreover PIAVE MAITEX will showcase the unique and innovative combination of two AGAIN articles to obtain an entirely sustainable bonded fabric with the possibility of personalized colour combinations. The range of functional fabrics, dyeable and transfer printable, perfectly combines creativity, innovation, real performance and sustainability all at once offering unparalleled comfort, performance, and tenacity.

New polyethylene and polypropylene-based monomaterial pouch solutions developed in value-chain collaboration

Borealis and Borouge have developed a series of new, monomaterial pouch solutions based on polyethylene (PE) and polypropylene (PP). Designed specifically for recycling, and in collaboration with value-chain partners, these new pouch solutions are suitable for the most demanding consumer packaging applications. In line with the EverMinds™ approach to Thinking Circular, these solutions further expand the range of more sustainable options available to the flexible packaging industry. Several of the pouches will be showcased at the K 2019 in October, including one exemplar containing 35% post-consumer recyclate (PCR).