From the Sector

• Expanding global textile and polymer business

SANITIZED AG announces that it has entered into an agreement with Consolidated Pathways Inc. Midland, Michigan USA to globally promote the Sanitized® odor-management, hygiene function and material protection technologies to brands and retailers. Consolidated Pathways will also support the advancement of the trusted Sanitized® Quality Seal and related branding concepts. The longtime co-operation between SANITIZED AG and ARCHROMA remains unchanged and is supported by the activities of Consolidated Pathways.

Consolidated Pathways acts as global brand and technical representative for the Sanitized® line of antimicrobial products. Consolidated Pathways will be focusing on commercializing Sanitized® products in textiles and will use its broad experience in polymer-based antimicrobials to extend the reach of the unique technologies that SANITIZED AG offers.

Consolidated Pathways, Inc is based in Midland, Michigan USA. The Principals of Consolidated Pathways have over two decades of experience with commercializing polymer-based antimicrobials and sustainable surface modification technologies.

The previously communicated targets for 2020 are unlikely to be achieved due to the COVID-19 pandemic

The Board of Management of SGL Carbon SE determined today, that the forecasted results for the fiscal year 2020 are unlikely to be achieved due to the global COVID-19 pandemic. In light of the substantial uncertainty regarding the duration and the consequences of the COVID-19 pandemic, the Board of Management is currently unable to provide a reliable sales revenue and earnings forecast for the current year. Consequently, the guidance for 2020 is suspended. 

The previous expectation, which guided for a slightly lower sales revenue und a recurring EBIT1 approximately 10-15% below the prior year (sales revenue 2019: €1,087m; recurring EBIT 2019: €48m), was already made conditional by the Board of Management in the management report published on March 12, 2020, that negative effects from the coronavirus were not included, as the outbreak at that time was mainly restricted to China and Italy. In the meantime, numerous other governments have introduced far-reaching measures with substantial limitations on the public and economic sectors and leading economists now forecast significant reductions in economic output in key economies. 

The Board of Management of SGL Carbon has introduced and partially already implemented comprehensive measures to reduce the cost base and to secure liquidity. These measures include the introduction of short-time work, reduction of material and indirect spend, as well as further reduction resp. postponement of capital expenditures. In addition, we are exploring further financing options independent of the capital markets, some of which are already in preparation. The Company is intensively working on identifying and mitigating potential risks. 

• Bangladeshi supplier offers production capacity to produce face masks and PPE on non-profit basis
•  Reaching out to global agencies to build partnerships to help tackle COVID-19 crisis

A Bangladeshi garment manufacturer is offering the manufacturing capacity for the production of protective face masks and Personal Protective Equipment (PPE) on a non-profit basis to help tackle the COVID-19 global pandemic.
Many hospitals in Europe and USA are already running short of masks and PPE as they creak under the strain of the pandemic.
At present, COVID-19 is most prevalent in Europe, where demand for surgical masks and other protective garments has increased this past two months. However, other countries – including Bangladesh – are several weeks behind Europe but are expected to follow the same pattern in terms of cases and deaths.

Denim Expert Limited Managing Director, Mostafiz Uddin, has reached out to the global community including brands & retailers, governments, embassies, donors, development agencies, global apparel associations and bodies in these unprecedented times.

Supply bottlenecks eliminated. All production lines back to full operation.

Following its temporary cutting back of production at the Nanjing site in China, Lenzing has now once again ramped up operations on all production lines to reach full capacity. Recently supply shortages of important raw materials arose as a result of intense transport controls in connection with the current situation surrounding the coronavirus. For this reason, output from two production lines was scaled back for a short time. All production lines are now fully operational again after the successful resumption of the required supplies to the manufacturing facility.

Dedicated marketing channel to better serve the US market

Huntsman Textile Effects and Xenon arc today announced the formation of NaviColor, a dedicated marketing channel to service the unique needs of select customers in the United States textiles and apparel industry.  

NaviColor is a business specifically designed to meet the needs of select Huntsman Textile Effects customers and to further expand the growing customer base. NaviColor features a dedicated team of professionals in a highly advanced technological environment to support customers utilizing Huntsman’s Textile Effects innovative chemicals, dyes and digital inks in the United States.  

NaviColor is the latest deployment of Xenon arc’s innovative xa-Direct model that helps the world’s preeminent manufacturing companies reach, grow and more effectively service the needs of their customer bases. Leveraging its domain expertise of the marketplace, combined with extensive voice of the customer research and leading-edge technology platform, the xa-Direct model delivers enhanced customer intimacy, valuable insights and improved customer service levels.

“We are excited to partner with Huntsman Textile Effects,” commented Mica Zuniga, Vice President of Strategic Growth for Xenon arc.

NaviColor will exclusively represent Huntsman Textile Effects product portfolio including:

•  Dyes
•  Chemical Auxiliaries
•  Digital Inks

DOMO Chemicals, a global leading player in engineering nylon materials towards sustainable solutions, today announced its transition plan for the function of Chief Executive Officer. The Board of Directors of DOMO has appointed Yves Bonte to succeed current CEO Alex Segers during February 2020. Mr. Segers has held the CEO position at DOMO since the Company started its chemical activities in 1994 and will continue to play an important role in the transformation of Solvay’s European Performance Polyamide and DOMO into one company. Closing of the acquisition of Solvay’s European performance Polyamide Business by DOMO is expected to take place on January 31st.

Alex Segers commented, “I feel privileged to have been given the opportunity to work with the DOMO team over the past twenty-six years, which has really been an incredible journey. We are now entering the next level for the company by integrating very soon the European Performance Polyamides Business from Solvay. In Yves we have found the ideal person to pass the baton to. We look forward to a seamless transition.”

Gregory De Clerck, Managing Director of Domo Investment Group and Member of the Board of DOMO Chemicals commented, “I would personally like to thank Alex for his leadership in the successful growth and transformation of DOMO from an upstream nylon 6 specialist into a full integrated engineering materials company developing innovative and sustainable solutions in the Polyamide Industry. We are excited to welcome Yves Bonte to DOMO as the new CEO and Chairman of DOMO Chemicals. We believe he is the ideal person to lead the next chapter of the Company’s growth and transformation process. Alex will continue to significantly contribute to the success of new DOMO.”

Yves Bonte joins DOMO from Yara, the leading fertilizer company and a provider of environmental solutions where he held the role of Executive Vice President Industrial recently named New Business since January 2010, and was responsible for a business generating appr. 20% of Yara’s total revenue of 12.9 billion USD. Prior to Yara, he held a variety of business leadership, commercial and operations roles at Lyondell Basel and Exxon Chemicals. Since 2018 Yves is as Board Member of DOMO.

“I have a true passion for innovation and sustainability, and I am thrilled to join DOMO as its next CEO,” Yves Bonte commented. “The Company has established itself as a leader in sustainable polyamide based on its strong technology-driven product portfolio with a solid foundation to further build upon. I believe DOMO is uniquely positioned to support its customers’ manufacturing processes in a cost effective and sustainable manner. The recently announced long-term strategy and planned investment will position DOMO to reach new levels of growth and success.”

Archroma announced its transition plan for the function of Chief Executive Officer. The Board of Directors of Archroma has appointed Heike van de Kerkhof to succeed current CEO Alexander Wessels effective January 6, 2020. Mr. Wessels has held the CEO position at Archroma since the Company was established in October 2013 and will be appointed as Vice Chairman of the Company’s Board of Directors. He will also take on a Senior Advisory role within SK Capital working across its portfolio of investments, which includes Archroma.

Alexander Wessels commented, “I feel privileged to have been given the opportunity to work with SK Capital and the Archroma team over the past six and a half years, which has really been an incredible journey. We are coming off another record year in terms of profitability and the business is uniquely positioned to capitalize on its significant momentum moving forward. For me personally, this is the ideal moment to take on my next challenge and in Heike we have found the ideal person to pass the baton to. We look forward to a seamless transition and I am excited to continue to support the Company as a member of the Board of Directors.”

“I have a true passion for innovation and sustainability, and I am thrilled to join Archroma as its next CEO,” Heike van de Kerkhof commented. “The Company has established itself as a leader in sustainable chemistry based on its strong technology-driven product portfolio with a solid foundation to further build upon. I believe Archroma is uniquely positioned to support its customers’ manufacturing processes in a cost effective and sustainable manner. The investments made into research and technology during the first stage of SK Capital’s ownership have positioned Archroma to reach new levels of growth and success.”

• Focus on Productivity and Efficiency

MS Printing Solutions at the next Heimtextil will focus on presenting textile printing solutions to boost cost-effective and high-quality productions, answering to Industry leaders in home and contract textile who need: productivity, quality and beneficial production process.

Attendees will see a JP4 EVO 3200 printer at work, with Bellagio reactive ink made by JK Group. This is one of MS' solutions which streamlines printing processes, reduces production times and maintenance costs, improving efficiency by:

• making the best use of production buildings, minimizing the space occupied by printers: JP4 EVO is compact and functional.
• taking full advantage of manufacturing-process, reducing downtime therefore improving productivity-performances: JP4 EVO can be fed by external roll unwinder ensuring timing optimization.
• using inks with a custom-made waveform, lowering the most common defects due to the interaction between ink and printheads, improving your productivity and competitiveness

The show will be the occasion for the Technical and Sales Teams to illustrate all details which characterize Minilario.  The printing machine, launched at the last ITMA, is the ideal choice for those searching for: flexibility, quality, speed, energy efficiency and sustainability, all in one.

The 64 print heads installed on the innovative printing carriage allow Minilario to reach the shocking but real printing speed of 18m/min, fitting the Home and contract textile demand of productivity and quality, applying a cost-effective production process.

The show will offer the opportunity to remark MS's sustainability commitment, started with #transparentaswater project based on the 100/90/10 paradigm aimed to engage the whole Textile Printing Industry in a big change. The commitment continued with MS’s adhesion to the “Sustainable Technologies” project launched by ACIMIT which selects textile machinery and systems manufacturers whose production specifications ensure a low environmental impact, combining sustainability and innovation. MS' printing machines may boast “Green Label” as “Suppliers of Sustainable Technologies” (come and visit us to go deeply inside our sustainability commitment).

• 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.

• Bangladesh’s biggest denim expo takes place 5-6 November
• The show runs concurrently with the Sustainable Apparel Forum Bangladesh
• From 4-6 November, Bangladesh becomes the perfect meeting point for stakeholders in the global apparel industry

DHAKA - Responsibility is the theme of the 11th Bangladesh Denim Expo which takes place on 5th and 6th November at International Convention City in Bashundhara, Dhaka. The event, now firmly established as one of the world’s leading denim trade shows, runs alongside the Bangladesh Sustainable Apparel Forum.

Bangladesh Denim Expo

Around 100 exhibitors from 11 countries, including host Bangladesh, will participate in this year’s denim expo. Other participating countries are china, Japan, Italy, India, Singapore, Brazil, Spain, Pakistan, Turkey and Germany.

H&M Group is collaborating with Bangladesh Denim Expo for the forthcoming 11th edition of the event and a number of guest speakers will be present from the company, including Pierre Borjesson, head of sustainability, global production. Other guest speakers include Andrew Olah, the founder of Kingpins Denim show, Alice Tonello, R&D director with the Tonello Group, world renowned denim designer, Piero Turk and Jordi Juani, Asia regional director with Jeanologia.

Through a series of product displays, presentations, seminar sessions & panel discussions, the Expo will encourage healthy debate and interaction among exhibitors and visitors to champion a more responsible denim industry. One of these, of course, is sustainability and within this sits the issue of responsibility – an overriding theme of this year’s event. Denim manufacture faces huge challenges with regards its social and environmental responsibility, with production techniques having potentially far-reaching ramifications for the environment as well as people involved in the production process.

However, the industry and its supply chain are making impressive progress on these issues with Bangladesh – now the world’s largest producer of denim – leading the way in terms of addressing some of the sustainability challenges relating to denim production, including excessive use of water and chemicals. Mostafiz Uddin is the organiser of Bangladesh Denim Expo. Uddin has watched with interest the evolution of the denim industry, with each Expo marking continued and gradual progress being made by the more progressive players in the industry.

Uddin says: “The way that business and product development is conducted can have far reaching consequences on the environment, on the people that make the product and the product’s end use & life-span. “It is the duty of all stakeholders in the apparel industry to acknowledge this responsibility and to analyse our business practices, for the benefit of all.” Emphasising the theme of responsibility within Denim Expo is the fact that revenues from the expo support the running and presentation of the Sustainable Apparel Forum.

Sustainable Apparel Forum

The Sustainable Apparel Forum (SAF) is the biggest annual sustainable apparel event in Bangladesh. Bangladesh Apparel Exchange (BAE) along with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) as co-organiser will jointly carry out the 2nd edition of the SAF on 5th Nov 2019.

This is the second edition of the Sustainable Apparel Forum, with the first-ever forum held in 2017 in Dhaka. The objective of this year’s forum is accelerating the momentum of sustainability in Bangladesh apparel industry.

The forum will see more than 50 speakers gathered from Bangladesh and overseas sharing expert opinions across five panel discussions covering current issues in the country’s apparel industry. These include human resources, transparency in business, water conservation, purchasing practices, sustainable chemical management, waste management, circular economy in textiles and climate change to name a few.

Additionally, the conference will host several knowledge building technical presentations from renowned organisations which will cover different issues relating to sustainability, including waste management, protection of the environment and better working conditions.

Speakers at the show include Md. Shahriar Alam, MP, Honourable State Minister, Ministry of Foreign Affairs, Bangladesh, H. E. Benoit Préfonatine High Commissioner, High Commission of Canada, Bangladesh, and Dr. Rubana Huq President, Bangladesh Garment Manufacturers’ and Exporters’ Association, Sheikh Fazle Fahim, President, Federation of Bangladesh Chamber of Commerce & Industries, Pierre Börjesson, Head of Sustainability – Global Production, H&M Group, Tuomo Poutiainen, Country Director, International Labor Organization, Peter McCallister, Executive Director, Ethical Trading Initiative and H.E. Winnie Estrup Petersen Ambassador, Embassy of Denmark, Bangladesh.

Prior to this year’s conference, the Embassy of the Kingdom of the Netherlands in Bangladesh and the Sweden Embassy in Bangladesh will also co-host two roundtable discussion in collaboration with BAE and in association with BGMEA on 4 November, 2019, while H&M, Better Work Bangladesh and C&A Foundation are partners in the event.
The conference will be followed by showcasing different innovative, sustainable & best work practices in RMG manufacturing factories in Bangladesh. Following the discussions, a series of recommendations will be made, and a Sustainability Roadmap for the Bangladesh apparel industry will be formulated.

This year’s SAF promises to be the biggest yet. Added by Mr Mostafiz Uddin in the recent press briefing for the event: “The title for this year’s Sustainable Apparel Forum is enabling sustainability through policy and leadership. The time for talking on sustainability issues is over. It is now time for actions. That’s why the focus of this year’s show is on practical, pragmatic actions the textile industry can adopt to improve its environmental footprint.”