From the Sector

Representatives from all 43 European partners of RegioGreenTex met for the Annual Consortium Meeting, hosted by CITEVE – the Portuguese Centre for textile innovation.

Co-funded by the European Union I3 Instrument Programme, RegioGreenTex is a €13 million project to promote investments in textile circularity. Research centres, regional clusters, regional development agencies and 26 SMEs collaborate to realise unique pilot projects to transform the textile industry business model from linear to circular.
 
The annual consortium meeting is a pivotal point to assess the project’s progress and impact. Presentations and workshops have been an essential part of the meeting, along with  networking opportunities where partners created synergies and discussed common challenges. Furthermore, all SME partners showcased their results through an exhibition with samples of garments, yarns, fabrics and products: the outcome of the project’s innovation so far. New collaborations and partners are expected to flourish as another outcome and the meeting.

EURATEX, as project coordinator, ensures the successful implementation of this ambitious initiative. Dirk Vantyghem, EURATEX Director General, commented: “RegioGreenTex is an essential piece of our wider plan to implement the EU Sustainable Textile Strategy. Offering investment support to our SMEs is critical to make this green transition a success.”

• Autoneum is expanding its production capacities in Asia with two new plants in Changchun in the Chinese province of Jilin and Pune in Western India.

The world's largest automotive market Asia is one of the most important sales regions for vehicle manufacturers and suppliers as well as a pioneer for new forms of e-mobility. Autoneum already supplies both international and local vehicle manufacturers in Asia with multifunctional lightweight components for noise and heat protection, supporting them in their commitment to sustainable mobility. Autoneum is expanding its production capacities in the key automotive hubs of China and India to increase its presence and thus its proximity to customers in these important production centers.

Autoneum’s new plant in China, which will be operated as a joint venture, will be located in Changchun in the northern Chinese Jilin province, which is one of Asia’s largest car production centers. The proximity to key local and international vehicle manufacturers makes Changchun a strategically important and attractive location for Autoneum. The plant will help to increase market share with European, Japanese and Chinese car manufacturers with products for light vehicles and also support the expansion of the Company’s business with components for commercial vehicles in this region. The project is supported by the local authorities in China. From the end of 2024, the plant will ramp up production with first samples for already awarded business for inner dashes, interior floor insulators and other NVH (noise, vibration, harshness) components for cars of all drive types.

Autoneum is furthermore expanding its local presence in Western India with a fully owned production facility in Pune in the state of Maharashtra. The Company already operates two locations in India: one in Behror near New Delhi in the north and a joint venture plant in Chennai in the south. Thanks to the new Pune plant, Autoneum will now be present in the north, west and south of the country and gain access to the third of four major automobile production centers in India. Orders have already been received and the plant in Pune will start manufacturing carpet systems, interior trim, wheelhouse outer liners, e-motor covers and other noise protection components as of the second quarter of 2024. From the 7 500 square meter building, Autoneum will supply international as well as local car manufacturers with a particular focus on Indian and Korean vehicle manufacturers.

Kelheim Fibres is showcasing recent research findings at this year's Cellulose Fibres Conference (13rd-14th of March). The development, led by Dr. Ingo Bernt, Project Leader of Fibre & Application Development at Kelheim Fibres, and Dr. Thomas Harter from Graz University of Technology, provides insights into the correlation between the geometry of viscose fibres and the liquid absorption of tampons.

Kelheim Fibres has long been engaged in the functionalization of viscose fibres, including the specific adaptation of fibre cross-sections. The trilobal Galaxy® serves as an example. The current study underscores the properties of the fibre, primarily rooted in its geometry. This involves taking a closer look at the underlying mechanisms. It has been confirmed that, in contrast to the traditionally round viscose fibres and despite similar chemical compositions and mechanical properties, Galaxy® enables significantly better liquid absorption.

While the higher specific surface area of trilobal fibres already promotes improved liquid absorption, this is not the main factor accounting for the difference in absorption. Instead, the geometric shape of the fibres proves to be crucial. Trilobal fibres create and maintain a more voluminous, extensive network within the absorbent body, providing a larger volume for liquid absorption.

Dr. Ingo Bernt emphasizes, "The results of our study are not limited to tampons—any application requiring increased absorbency can benefit from the properties of our Galaxy® fibres."

The lecture "Geometry Matters: Unveiling Tampon Absorption Mechanisms" by Dr. Ingo Bernt und Dr. Thomas Harter takes place on the 14th of March at 2:50pm.

Fibre Extrusion Technology Ltd (FET) of Leeds, UK has appointed Dr Kristoffer Kortsen as Senior Materials and Process Scientist. He will report directly to R&D Manager, Dr Jonny Hunter, who joined FET in early 2023 in a growing Research and Development team.

Kortsen’s main area of work is in Gel Spinning of UHMWPE (Ultra-High Molecular Weight Polyethylene). His contribution will help provide gel spinning expertise and equipment in the near future to a range of industries including medical, aerospace, defence aerospace and marine.

He completed a Master’s in chemistry at KU Leuven, graduating magna cum laude in 2018. For his Master’s placement, he worked on the production of impact modifier additives for PVC at Kaneka Belgium. Continuing a partnership with this international chemical manufacturing company, he joined the Howdle group at the University of Nottingham for a PhD project looking into the industrial potential of scCO₂ dispersion polymerisations for additive production. After graduating, he worked in the Shaver group at the University of Manchester, developing a holistic approach to plastics recycling and sustainability across the many stakeholders in the field.

SHIMA SEIKI MFG., LTD. is exhibiting at the Knit-Tech 2024 Exhibition (1st-4th March 2024) in Tiruppur, India, in cooperation with its partner Universal MEP Projects & Engineering Services Ltd.

SHIMA SEIKI will be introducing the latest computerized flat knitting equipment to this market as proposals for sustainable production through innovative shaping technology and the latest digital solutions.

SHIMA SEIKI's lineup at Knit-Tech is headed by its workhorse N.SSR®112 garment shaping machine in 14 gauge. N.SSR®112 features innovations such as the R2CARRIAGE®, spring-type moveable sinker, DSCS® Digital Stitch Control System, stitch presser, yarn gripper and cutter, and takedown comb. Shown for the first time is SHIMA SEIKI's new N.SSR®072 computerized jacquard collar machine that can produce shaped collars efficiently based on computer-generated designs.

Design is demonstrated on SHIMA SEIKI's SDS®-ONE APEX4 design system. At the core of the company’s "Total Fashion System" concept, it provides support throughout the supply chain, integrating production into one smooth and efficient workflow from yarn development, product planning and design, to machine programming, production and even sales promotion.

• Revenues: 477.6 million euros (-6%)
• EBITDA before non-recurring items: 79.0 million euros (-15%)
• Net income: 32.6 million euros (-26%)
• Free cash flow before non-recurring items: 45.3 million euros
• Dividend: €0.36 per share

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the fiscal year 2023. Audit procedures have been performed by the Statutory Auditors.

Currency changes between 2022 and 2023 mechanically decreased revenues and EBITDA before non-recurring items by 3.9 million euros (-3%) and 1.7 million euros (-8%) respectively in Q4, and by 11.2 million euros (-2%) and 4.8 million euros (-6%) respectively in the year, at actual exchange rates compared to like-for-like figures.

OUTLOOK
While the 2023 full-year results were affected by the adverse environment, they also attest to the substantial improvement in the fundamentals of the Group's business model, which will have a positive impact on 2024 results. Persistent macroeconomic and geopolitical uncertainties could nevertheless continue to weigh on investment decisions by the Group's customers.

While the most recent indicators seem to suggest that the situation is unlikely to deteriorate further, the timing and magnitude of a rebound in new system orders remain uncertain.

Outlook for 2024
To facilitate analysis, the accounts of Lectra excluding the Launchmetrics acquisition ("Lectra 2023 Scope") will be analysed separately from the Launchmetrics accounts in 2024.

The Group has based its 2024 objectives on the exchange rates in effect on December 29, 2023, in particular $1.10/€1. When converting 2023 results using the exchange rates retained for 2024, 2023 revenues are mechanically reduced by 4.7 million euros (to 472.9 million euros) and 2023 EBITDA before non-recurring items is reduced by 2.2 million euros (to 76.8 million euros). Thus, for the Lectra 2023 Scope, the comparisons between 2024 and 2023 printed below are based on constant exchange rates.

At this early stage of 2024, continuing low visibility regarding orders and revenues from new systems makes it impossible to predict the actual timing and scale of the future rebound in this area. On the other hand, visibility is high for recurring revenues, which accounted for 68% of total revenues in 2023 and will continue to grow in 2024.

In light of the above, Lectra has set as its objective for 2024, for the Lectra 2023 Scope, to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The low end of the revenues range is based on the absence of a rebound in new systems orders, which would remain stable in 2024 relative to 2023, with a 6% decline in revenues from perpetual software licenses, equipment and accompanying software and non-recurring services, as the order backlog was lower on December 31, 2023 than a year before.

The high end of the revenues range reflects a gradual rebound in new systems orders, which at year-end 2024 would be back to year-end 2022 level.
 
In addition, Launchmetrics revenues (for the consolidation period from January 23 to December 31) are projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15% (assuming an exchange rate of $1.10/€1).

HeiQ AeoniQ Holding, a subsidiary of HeiQ Group, is appointing Julien Born as its CEO, leveraging his extensive executive leadership and profound textile industry expertise cultivated in prestigious organizations such as DuPont, KOCH Industries, and The LYCRA Company, where he served as CEO since 2021. Julien Born will champion the growth of the cellulosic filament fiber HeiQ AeoniQ™.

The HeiQ AeoniQ™ technology is poised for commercial production at the inaugural manufacturing facility in Portugal by the close of 2025. The just concluded €5M acquisition of land and buildings, within a 2-year project total investment of €80M, marks a pivotal milestone for the 15,000m2 facility in Maia, Porto. Situated strategically in Portugal's textile hub and a mere 20 minutes from a major commercial port, this facility is poised to catalyze the scale-up phase of the business, going from pilot manufacture to mass production when it wants to compete at full-scale on cost and performance with fossil fuel-based fibers.

HeiQ intends to consolidate the Group’s current and future activities in Portugal at the newly acquired site. This includes Shared Service Center functions as well as the Innovation Hub for the HeiQ Textile & Flooring business unit.

The recent addition of Julien Born to lead the charge follows the nomination of Robert van de Kerkhof to the HeiQ Board, a seasoned executive with extensive textile experience holding positions as CCO, CSO, Board member of Lenzing Plc, and Chairman of CIRFS, the European Man-Made Fibres Association. Robert will also serve as the Chairman of the HeiQ AeoniQ Holding Board.

HeiQ AeoniQ Holding, established as an independent subsidiary to attract new investors, value-chain partners, and brands, embarks on an ambitious multi-year scale-up strategy. This strategy involves integrating diverse sources of bio-derived feedstock and hyper-scaling cellulosic filament fiber production capacity over the next decade, targeting industries such as apparel, footwear, automotive, home textiles, and aeronautics.

“From Earth to Earth”: The new plan defines goals and concrete actions in Environmental, Social and Governance (ESG) areas to foster value creation for all stakeholders and put new sustainability regulatory requirements at the centre of attention.

A project, designed to enhance RadiciGroup's transparency and commitment to develop a responsible business along its entire value chain from an economic, social and environmental perspective and focus on the ever more widespread and stringent sustainability regulatory requirements. These are the features and goals of the Sustainability Plan presented by the Group and called "From Earth to Earth", precisely to emphasize the intent to focus on the Earth and future generations.

In the context of a complex and constantly changing scenario, the Group has therefore decided to capitalize on the goals achieved and look beyond them with a plan defining the medium-term targets and the actions to be taken to fulfil them and covering all areas considered to be "material”, i.e., relevant from the point of view of ESG and financial risks, opportunities and impacts. Indeed, the ultimate goal of "From Earth to Earth" is to support business continuity and the growth of the company and all its stakeholders.

The project was the result of a multi-year collaboration with Deloitte, which contributed an external and objective viewpoint on the definition of the material targets and themes. However, it was not an armchair exercise, but the result of an extensive listening process involving internal and external stakeholders, all of whom were sustainability experts who helped define a shortlist of strategic themes for both the Group and its main stakeholders. These issues were then analysed in detail using working tables on the different themes to identify the objectives in Environmental, Social and Governance areas and the related concrete actions needed to achieve them, in line with the European decarbonization and energy transition policies and the
United Nations Sustainable Development Goals, a global blueprint for sustainable growth.

In particular, RadiciGroup’s environmental goals include: a 20% increase and differentiation in renewable source electricity consumption, an 80% reduction in total direct greenhouse gas emissions by 2030 compared to 2011, attention to water consumption to limit the impact on local communities and biodiversity, the extension of Life Cycle Assessment (LCA) methodology to measure the environmental impact of 70% of the products (in terms of weight) manufactured by the entire Group, collaboration among the various actors in the supply chain from an ecodesign perspective and the search for increasingly more sustainable and circular packaging solutions.

More than 82 companies, businesses and social organizations – including AkzoNobel – are involved in a major Dutch research program focused on developing new technologies that will help solve some of today’s societal challenges.
 
Seven broad consortia have been established as part of the government-funded “Perspectief” program, with AkzoNobel set to play a leading role in the SusInkCoat project, which will explore how to make inks and coatings more sustainable.

The company will work together with private partners and other societal stakeholders to develop new materials, processes and applications to improve the durability, functionality and recyclability of coatings, thin films and inks. The program, which will run for the next five years, is backed by the Ministry of Economic Affairs and Climate Policy and the Dutch Research Council (NWO).

“Our discussions about collaborating with our SusInkCoat partners have been very positive,” says AkzoNobel’s R&D Director of Scientific Academic Programs, André van Linden, who is also the co-lead of SusInkCoat. “We’re all facing the same societal challenges – how to become more circular – and we’re looking for the same solutions in different application areas. But we’ve never done that together for this specific research topic, so we need an ecosystem to help us solve these challenges.
 
Van Linden adds that the program – one of many R&D projects the company is involved with – will also support AkzoNobel’s ambition to achieve 50% less carbon emissions in its own operations – and across the value chain – by 2030.
 
 “We want to make the recyclability of materials - such as furniture, building materials and steel constructions - easier by introducing functionalities like self-healing, higher durability and triggered release,” he continues. “The more you can leave the materials in their original state, the more sustainably you can operate.”

AkzoNobel will be collaborating with Canon, Evonik, GFB, PTG and RUG Ventures, who together possess extensive knowledge of market demands, supply chains and production processes. All the SusInkCoat partners will also work with academic researchers at several Dutch universities in an effort to identify promising developments that can be commercialized, used for education purposes or for outreach to the public.

Research being conducted by the other six consortia includes investigating methods to make tastier plant-based food; flat optics for more sustainable hi-tech equipment; and cheaper and more accessible medical imaging technology.

Fibre Extrusion Technology Limited (FET) has been awarded £50,000 of grant funding to collaborate with the University of Manchester on complex spin pack and spinneret designs. This funding will provide FET with access to the expertise of four universities and the National Physical Laboratory to develop the next generation of machinery.

The grant is awarded by a consortium led by AMPI (The Advanced Machinery and Productivity Institute) and NPL (The National Physical Laboratory). AMPI’s Innovation for Machinery (I4M) programme supports businesses in West Yorkshire and Greater Manchester as part of an overall initiative to drive innovation for the UK’s advanced machinery manufacturers to meet the challenges of developing new technology and entering emerging markets.

In this project, FET will be working with the University of Manchester to conduct computational fluid dynamics (CFD) studies on a number of complex spin pack and spinneret designs. The aim of this work is to identify areas of improvement for FET’s spin packs and spinnerets and to use computer aided designs to develop significantly more efficient versions. The goal is that the research will improve the throughput of FET extrusion systems, thus reducing the amount of polymer lost through inefficient flow paths. This development, in turn, will reduce the environmental impact of synthetic polymer processing.

FET designs, develops, and manufactures extrusion equipment for a range of high value textile material applications worldwide. Established in 1998, FET’s major strength has always been to collaborate with customers in testing, evaluating and developing high value materials with diverse, functional properties. Efficiency and sustainability are key, so enhanced development of spinneret technology will contribute significantly to these objectives.