From the Sector

• New air purification and sulfur recovery plant up and running at the Lenzing facility
• Another step closer to meeting sustainability and climate targets
• Self-sufficiency in raw materials further enhanced

Lenzing Group is continuing to make great strides toward achieving carbon neutrality across the Group. The successful completion and commissioning of an air purification and sulfur recovery plant at the Lenzing facility marks another milestone in the Group’s ambitious strategy. Lenzing has invested some EUR 40 mn in this project since construction began in 2019.

Using state-of-the-art technology, the plant will enable carbon emissions to be reduced by 15,000 metric tons at the Lenzing facility. This will also make the group more self-sufficient in securing vital raw materials for processing, which will bolster the site’s competitive standing in terms of sustainability.

“As a result of this investment, Lenzing has made further progress towards implementing its climate targets, while achieving much greater autonomy with regard to one of its core raw materials”, says Christian Skilich, Member of the Managing Board at Lenzing Group.

In 2019, Lenzing set the strategic target of halving its group-wide greenhouse gas emissions per ton of product by 2030. Its goal for 2050 is to achieve climate neutrality.

Contact restrictions, home office and altered daily lives – our lives in 2020 were radically changed. This was also the case for various sectors of the economy, including the textile and clothing industry. However, with crisis come opportunities and stimuli for change. Under the motto “Still Physical”, manufacturers recount their personal success stories in 2020 – the industry can look forward to a selection of sustainable materials curated exclusively by the PERFORMANCE FORUM Jury. Areas of focus: natural fibers that highlight wellbeing aspects, plant-based materials that make us strong and excite on an emotional level, bio-nylons and bio-based finishings that rethink function. “Still Physical – Your Success Story of 2020” will be on display online as the first of its kind within a trade fair week from 17 to 21 May 2020.

Transformation: Technology first?
The pandemic has forced us into new, primarily digital forms of living and working. Our daily lives are characterised by home offices, home schooling and online meetings. The desire for real, physically perceptible experiences has grown incessantly within the last year. In the same context, people nowadays are strongly driven by technological progress – yet how far can we allow technological change to go and how do we wish to live in the future? Long before the pandemic, the trend towards self-monitoring and control of important bodily functions developed. The sports industry developed tools to measure levels of performance and monitor bodily functions with the goal of enhancing performance. Self-optimisation, body shaping and health promotion have become standard nowadays. Staying healthy and keeping fit are now social imperatives in our performance-oriented society. The pandemic has made us rethink, made us pause – with sustainable function still in focus, yet function needs to be rethought for the future, distancing ourselves from mere performance enhancement, and embracing clothing that facilitates people in feeling good.

Touch & Feel
In a visual, digital world, one sense has been forgotten: the sense of touch. Materials trigger completely different reactions, consciously or unconsciously. Moreover, the surface texture is also decisive in the functionality of a fabric, lending it its unique characteristics. In times of contact restrictions and lockdown, there is a need for a space for emotions, for regeneration and physical wellbeing. This is also reflected in the desire for appropriate apparel that leaves a pleasant sensation on the skin. Lightweight, warm and of a softer nature, plant-based fibers fulfil the desire for comfort and promote wellbeing.

We are physical – we are nature
How will we shape and adapt the post-pandemic textile and apparel industry? The Corona crisis once again reminds us of our existential bond with the natural world. While humanity fights against the spread of a deadly virus with social isolation, one thing is doing well: our planet. It is recovering from all the exhaust gases that are released into the air daily by cars and factories. There is a shift in focus towards taking time out in nature, whether in the form of a morning run, a mountain hike or a yoga session on the grass.

Your success story of 2020
What has touched them? Which experiences have shaped their latest innovations? Does the crisis also present opportunities? The chance for something new, for a rethink, on an even more sustainable, more ecological path? Which highlights, which stories are worth communicating and where did the focus lie in 2020? Various material manufacturers already started to focus on sustainability and the cautious use of resources some time ago. Innovations in the areas of materials and in processing methods are the driving forces of the development towards more sustainability. However, we need to realign all processes and structures in our supply and production chains and adapt them to the needs of a resource-conserving, responsible industry. A pioneering example of such alignment was the decision of PERFORMANCE DAYS to only present sustainable materials at the PERFORMANCE FORUM from the November 2019 trade fair event onwards. Additionally, the setting-up of the new digital sourcing platform “THE LOOP” shows how technology can be implemented aside from material and processing innovations in such a way that our procedures and structures can be adapted to difficult conditions.

Informative & up-to-date: the digital trade fair week from 17 to 21 May 2021
As usual, the highlighted fabrics from the Focus Topic “Still Physical”, which the exhibitors have defined as their personal success stories, will be available shortly on the PERFORMANCE DAYS website highlighting all details and facets.

Sappi is expanding its product range for corrugated board applications with Fusion Nature Plus.

With Fusion Nature Plus, Sappi is launching an uncoated, fully bleached and completely recyclable virgin fibre liner. The company provides a unique variety of packaging and speciality papers. The specialist in paper-based solutions also offers a wide range of products in relation to labels. Fusion Nature Plus offers excellent printing results in flexographic, digital and offset printing processes.

• Ultra-bright, uncoated virgin fibre paper with excellent printing results
• Ideal for attractive corrugated board as well as premium shopping bags
• Can be used as topliner, liner or fluting
• Available in grammages of 80 to 130 g/m²

The virgin fibre liner is based on the concept of the successful Fusion Topliner. In contrast to the double-coated Fusion Topliner, Fusion Nature Plus has a natural, uncoated surface with a more tactile feel, in response to the growing market appetite for this type of product. The liner is also provided in very low grammages.

Fusion Nature Plus enhances brand appearance

Brand owners, corrugated board processors, manufacturers of display cartons and folding cartons as well as designers all benefit from the versatility of the new Fusion Nature Plus. In contrast to conventional uncoated liner papers, the material offers high brightness, brilliant colour reproduction and consistently high quality. These features make the product the perfect choice for corrugated board or solid board packaging, where a very bright appearance is needed for topliners, inner liners and corrugating applications. Whether used as an inlay in cosmetics or confectionery packaging, or as a liner in shipping packaging to ensure an exceptional unboxing experience, Fusion Nature Plus is called upon wherever an enhanced appearance is desired.

Another area of application is paper carrier bags, where uncoated paper qualities are often preferred.

Fusion Nature Plus is ideally suited to a range of printing processes: the product achieves outstanding results in flexographic and offset printing. The pre-treated surface and high brightness offer clear advantages with regard to primer requirements and print behaviour, especially for inkjet-based digital printing. Bernd Gelder, Head of Sales Containerboard at Sappi Europe: ‘With its exceptional print quality and impressive colour reproduction, Fusion Nature Plus particularly appeals to packaging customers who value a natural look and feel in paper. The response from the market, in which packaging based on corrugated board still needs to take on a bigger role, is enormous, of course, with the result that we have succeeded in completing a number of interesting end applications and customer projects with Fusion Nature Plus shortly after market launch.’

Virgin fibre vital for recycling

In continuous recycling use, fiber that has already been recycled is subject to a progressive weakening of quality, resulting in a weakness in the products that incorporate them, but also, crucially, over time they will ultimately degrade to a point where they become unrecoverable. As a result, a certain amount of virgin fibre needs to be introduced into the cycle on a regular basis. Without continuous virgin fibre contribution to the pulp cycle, recycled producers will in the end run out of raw material. The premium virgin fibre liner Fusion Nature Plus from Sappi plays an important role here in maintaining the quality of the recycling substrate.

Thanks to the central location of Sappi’s production site in Ehingen, Fusion Nature Plus can be supplied quickly throughout Europe. The shorter transportation distances reduce transport related fossil emissions and protect the environment. The shorter production cycles in turn ensure high availability and rapid supply.

Fusion Nature Plus is currently available in six grammages from 80 to 130 g/m² in both sheet and roll form. Sappi can also provide Fusion Nature Plus with FSC or PEFC certificates on request.

ISKO introduces ISKO™ Selvedge – a 21st century reinterpretation of one of the most legendary denim fabrics ever made. Inspired by the history and reverence of original Selvedge denim, ISKO has applied its high-performance patented technologies to develop a new Selvedge range. Available in a wide selection of weights, stretch options and finishes, ISKO™ Selvedge adds flexibility, softness and comfort to a fabric more commonly known for its raw and rigid qualities.

The new ISKO™ Selvedge range preserves the authenticity and many of Selvedge’s hallmarks beloved by true denim aficionados the world over, whilst introducing modern attributes such as sustainability, comfort and wearability, which are guaranteed to make it a favorite of a new generation of denim lovers.

The range includes 19 fabric varieties, with weights spanning from 7.75 to 14.5 oz and elasticity options between 13% – 52% for outstanding recovery and holding power. This variegated array relies on R-TWO™ technology. Certified to Textile Exchange environmental credentials, this platform ensures full traceability, minimizing environmental impact and delivering astounding quality to each solution included in the ISKO™ Selvedge family.

Sateri, one of the world's largest producers of viscose fibre, is planning to expand its Lyocell production in China, with total planned annual capacity of up to 500,000 tonnes by 2025.

The first phase of this expansion kicked off recently with ground breaking works for a new 100,000 tonne facility in Changzhou, Jiangsu province. Another 100,000 tonne facility will be built in Nantong, Jiangsu province later this year. The Changzhou Lyocell facility is expected to commence production in the third quarter of 2022 and will create more than 800 jobs.

Sateri’s first foray into China’s Lyocell market was in May 2020 when its 20,000 tonne Lyocell production line in Rizhao, Shandong province commenced production. The same site houses a 5,000 tonne Lyocell pilot production line dedicated for the development of Lyocell application technology.

Allen Zhang, President of Sateri, said, “Sateri’s continued investment in Lyocell not only responds to the changing needs of the market and the textile industry but also supports China’s green development plans. It is also very much a part of Sateri’s 2030 Vision commitment to sustainable development where we actively seek to adopt a circular economy model through clean and closed-loop production technology and innovation.”

A natural and biodegradable fibre, Sateri’s Lyocell is made from wood pulp sourced from certified and sustainable plantations. It is manufactured using closed-loop technology, requiring minimal chemical input during the production process, and utilising an organic solvent that can be almost fully recovered and recycled.

In anticipation of strong demand for Lyocell in the coming years, Tom Liu, Sateri’s Vice President and General Manager of Lyocell and Nonwovens Business, said: "Customer-centricity is Sateri’s promise. The new expansion plans will enable us to extend our domestic and international market reach and provide our customers with high quality and comprehensive fibre products. At the same time, we will invest in technology improvement, application development, and brand collaboration to bolster the industry”.

Financial Year 2020

As a consequence of the COVID-19 pandemic, Rieter closed the 2020 financial year with sales of CHF 573.0 million, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million). Due to the low sales volume, a loss of CHF 84.4 million was recorded at the EBIT level while at the net profit level the loss was CHF 89.8 million. In view of the loss in the 2020 financial year, the Board of Directors proposes that shareholders waive the payment of a dividend for 2020.

Order intake of CHF 640.2 million in the 2020 financial year was 31% down on the previous year (2019: CHF 926.1 million). Following the significant slump in demand in the second quarter of 2020 (CHF 45.7 million), order intake recovered in the third quarter (CHF 174.4 million) and improved further in the fourth quarter (CHF 215.1 million).

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

Business Groups
Sales of the Business Group Machines & Systems amounted to CHF 295.8 million in 2020, which corresponds to a decrease of 24% compared to the previous year. Due to the low volume and taking into account the expenditure on the ongoing innovation program, the business group recorded a loss of CHF 72.4 million at the EBIT level. Order intake in the reporting year was CHF 363.9 million (-35% compared to the previous year).

The Business Group Components with sales of CHF 174.3 million (-24% compared to the previous year) achieved a profit of CHF 1.4 million at the EBIT level before restructuring charges. EBIT after restructuring charges was CHF -5.5 million. The order intake with CHF 169.1 million (-24% compared to the previous year) was just below sales.

The Business Group After Sales achieved sales of CHF 102.9 million (-27% compared to the previous year) and a positive EBIT of CHF 1.8 million. Order intake was CHF 107.2 million (-24% compared to the previous year). Over 60% of spinning mills were shut down in the second quarter of 2020, with a corresponding impact on the demand for spare parts.

Dividend
Due to the loss of CHF 89.8 million at the net profit level in the 2020 financial year, the Board of Directors proposes that shareholders waive the distribution of a dividend.

Outlook
Rieter expects the market recovery that began in the second half of 2020 to continue in 2021. The company expects an order intake in the first half of 2021 exceeding that of the previous half year (second half of 2020: CHF 389.5 million). Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nonetheless, as already announced, Rieter still anticipates that sales in the first half of 2021 will be below the break-even point. In connection with the high order backlog at the beginning of 2021, Rieter expects an operating profit for the full year 2021.

2020 financial year: operating profit thanks to profitable second half-year Due to the pandemic-related decline in global vehicle production, Autoneum's revenue in local currencies decreased by –18.7% in 2020. Thanks to a global cost reduction program and improvements from the turnaround program in North America, Autoneum achieved an EBIT margin of 1.6%. Furthermore, the significantly increased free cash flow of CHF 112.5 million enabled a substantial reduction in net debt (excluding lease liabilities) of CHF –63.3 million.

2020 was marked by the coronavirus pandemic and its massive impact on the global economy. Worldwide lockdowns and production stoppages at vehicle manufacturers had drastic consequences for the entire automobile industry and Autoneum in the first half of the year. Although the market recovered in the second half-year, the number of vehicles produced for the year as a whole remained well below the level of the previous year. Thanks to prompt adjustment of the cost structure to the reduced market volume and improvements achieved during the turnaround in North America, Autoneum nevertheless managed to generate an operating profit in 2020 in an extremely difficult and volatile market environment.

Please find more details in attached PDF file.

Order Intake Continued to Recover in the Fourth Quarter of 2020:

• Order intake increased to CHF 215.1 million in the fourth quarter of 2020 and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales expected
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee

Rieter posted a globally and broadly supported order intake of CHF 215.1 million in the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020 after the slump in demand in the second quarter continued (order intake second quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds to a decrease of 31% compared to the previous year.

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

As expected, as a consequence of the economic effects of the COVID-19 pandemic, the Rieter Group closed the 2020 financial year with considerably lower sales than in the previous year. According to the first, as yet unaudited figures, total sales of CHF 573.0 million were achieved, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million).

Order Intake by Business Group
All three business groups were affected by the slump in demand in the second quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order intake in the third and fourth quarters of 2020, the weak second quarter was only partially offset.

The Business Group Machines & Systems was particularly hard hit by the effects of the pandemic, with a year-on-year decline of 35%. The Business Groups Components and After Sales each recorded a 24% reduction in order intake.*

Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in all three business groups. Accordingly, reluctance to invest and deferred deliveries by customers caused sales in the Business Group Machines & Systems to decline by 24% compared to the previous year.

Due to COVID-19, a large number of spinning mills stopped production worldwide. This led to low demand for spare parts and wear parts, especially in the second and third quarters of 2020. Accordingly, compared to the previous year, sales in the Business Groups Components and After Sales fell by 24% and 27% respectively in the 2020 financial year.*

Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a consequence of the COVID-19 pandemic.*

EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019: 11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31, 2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in the mid three-digit million range.

First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the first half of 2021 to be below the break-even point.*

Change to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding Ltd. has appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.*

Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur on April 15, 2021.*

*See attached document for more information.

Reflecting the pandemic-related drop in worldwide vehicle production, Autoneum’s revenue in local currencies fell by –18.7% in 2020, although the second half of the year saw a significant market recovery. Group revenue in Swiss francs fell by –24.2% year-on-year to CHF 1 740.6 million. For the full year 2020, the EBIT margin will be around 1.5% and the free cash flow slightly over CHF 100 million.
At the Annual General Meeting on March 25, 2021, the Board of Directors will propose Liane Hirner and Oliver Streuli for election to the Board of Directors of Autoneum Holding. Peter Spuhler will not stand for re-election.

At 74.5 million, the number of light vehicles produced globally in 2020 was down –16.2% compared to the previous year, where around 89 million vehicles were manufactured. Autoneum’s revenue in local currencies decreased by –18.7% in 2020, pretty much in line with the negative market dynamics. The somewhat stronger decline of revenue compared to the market results from a lower share of Asia in Autoneum's total revenue. Impacted by the appreciation of the Swiss franc against the most important currencies for Autoneum, the consolidated revenue dropped in 2020 by –24.2% to CHF 1 740.6 million. The heterogeneous development of the first and second half of the year was characteristic for the pandemic-driven automotive year 2020. Worldwide lockdowns and production stoppages at vehicle manufacturers led to a market slump in the first six months and a corresponding loss in revenue for Autoneum. Thanks to the subsequent market recovery and catch-up effects in the second half of the year, revenue improved considerably compared to the first half of the year.

Revenue development in Asia and SAMEA region significantly better than market
While revenues in local currencies of the highest-volume Business Groups Europe and North America decreased by –25.6% and –19.3% respectively, reflecting the regional, pandemic-driven market development (Europe: –22.9%; North America: –20.1%), Business Group Asia almost held its prior-year level with an organic decline of only –2.1% in 2020 thanks to the strong upturn in automobile production in China in the second half of the year and despite the fact that the number of vehicles produced in Asia fell by –11.4%.*

Personnel changes to the Board of Directors
At the Annual General Meeting on March 25, 2021, the Board of Directors of Autoneum Holding will propose Liane Hirner and Oliver Streuli for election as new members of the Board of Directors.
Liane Hirner has been CFO and member of the Management Board of Vienna Insurance Group, based in Vienna, Austria, since 2018.*

Oliver Streuli, a Swiss national, has been CEO of PCS Holding, based in Frauenfeld (Canton Thurgau), Switzerland, since 2019.*

Peter Spuhler has been a member of the Board of Directors of Autoneum since 2011 and will not stand for re-election at the Annual General Meeting on March 25, 2021.*

*See attached document for further informationen

The Spring Edition of Intertextile Shanghai Home Textiles will return to the National Exhibition and Convention Center (Shanghai) from 10 – 12 March 2021, together with four other textile events including Intertextile Shanghai Apparel Fabrics – Spring Edition, Yarn Expo Spring, CHIC and PH Value. The fairs will offer an all-round business platform and a host of exciting synergy effects for the sector.

High-quality finished products to be offered
In March 2021, the Spring Edition will showcase a selection of home textile products including bedding & towelling, rugs, table & kitchen linen, home textile technologies, textile design and many more. Additionally, the fair will be held concurrently with Intertextile Shanghai Apparel Fabrics – Spring Edition, Yarn Expo Spring, CHIC and PH Value, offering a comprehensive sourcing platform for the sector.

Lenzing views Intertextile as an ideal platform to present their sustainable home products
The Lenzing Group, a leading producer of man-made cellulose fibres, is amongst the major industry players who have already confirmed their participation in the upcoming fair. Ms Lesley Wu, Home Textile Business Development at Lenzing Fibers (Shanghai), talked about new market trends in the post-pandemic era and the reasons they decided to join the Spring Edition of Intertextile Shanghai Home Textiles:

“Even though the home textile industry has, to some extent, been negatively impacted by the COVID-19 outbreak, there are both opportunities and challenges for the sector. Without a doubt, environmental protection and sustainable development are the hottest topics in today’s society. Consumers are paying more attention to healthy lifestyles and looking to make a shift to green consumption as a result of the pandemic. More and more consumers are opting for functional and sustainable raw materials. Environmentally sustainable fibres are therefore gaining popularity.”

“Right now, we expect the home textile industry will continue its steady recovery. Home textile companies may look for opportunities in product and marketing innovations, such as developing functional and sustainable home textile products and exploring various O2O business model options,” Ms Wu added.

Lastly, Ms Wu shared why they chose to participate in Intertextile: “We decided to exhibit at Intertextile Shanghai Home Textiles because it is an influential trade fair for the industry. As the Lenzing Group has been expanding in the home textile market, we want to use this platform to showcase the applications for TENCEL™ branded fibres in home textiles, and to further promote sustainability through our TENCEL™ Home cellulosic fibres.”

To find out more about this fair, please visit: www.intertextilehome.com