From the Sector

• SGL Carbon supplies first plants with DIN EN1591-1 tightness certification to the chemical industry
• First column already delivered to major European customer

In plant operation in the chemical industry, the tightness of flanged joints is becoming increasingly important when dealing with aggressive and corrosive operating media. In accordance with European Union requirements, the German government has defined new requirements in the first administrative regulation to the Federal Immission Control Act (BImSchG), which will apply from January 2021. SGL Carbon is the first manufacturer of PTFE-lined columns to be able to provide the required proof of tightness according to DIN EN 1591-1 and has already delivered the first column with the new certification to a major European customer.

Specifically, the Technical Instructions on Air Quality Control (TA-Luft) of the Federal Immission Control Act (BImSchG) prescribe new, stricter emission values (leakage class L0.01) for keeping the air clean, which must be complied with when operating plants requiring a permit. In order to be able to guarantee the technical tightness of steel/PTFE flanged joints, SGL Carbon, together with a working group of other companies, first determined the EN 13555 sealing characteristic values, which reflect the material-specific PTFE properties as well as the characteristic manufacture and shaping of the linings. With these characteristic values integrated in a database, SGL experts were able to perform realistic DIN EN 1591-1 calculations for flanged joints of a packed column lined with POLYFLURON PTFE and prove the tightness in accordance with TA-Luft. The design, final acceptance and pressure tests in accordance with Directive 2014/68/EU (PED) were successfully certified by a recognized notified body.

"With the rapid implementation of the new  tightness requirements for columns, our solutions offer customers further significant added value, which is currently also being applied to other products. Our sales team and technical service are available to provide customers with comprehensive advice on the new directives and our products," explains Ralph Spuller, Director Product Management in the Process Technology (PT) Business Unit at SGL Carbon.

• Combined HCl acid and steam generation enables significant energy savings and increased cost efficiency

SGL Carbon delivered a Hydrochloric Acid (HCl) synthesis unit with integrated steam generation to Travancore-Cochin Chemicals Ltd. (TCCL), a major producer in the chlor alkali business in South India. End of January, TCCL officially inaugurated its plant in Kochi in India’s Kerala state. Since then, the unit has already been ramped up at the customer’s site to full capacity.

The synthesis unit uses the efficient membrane wall technology and has a capacity of 60 tons of HCl per day. As an additional benefit, this innovative design enables the recovery of waste heat generated in the synthesis unit from the reaction of Hydrogen & Chlorine to produce up to 33 tons of steam at the high pressure of 10 bar every day. This steam can be used elsewhere in the chlor alkali plant, for example when concentrating caustic to flakes. As a result, the energy efficiency of TCCL’s plant goes up substantially since a huge portion of their steam demand can be covered by SGL’s unit. Thereby this helps to save costs as well as reduces CO2 emissions by more than 1.500 tons per year potentially.

The HCl synthesis has been completely engineered and produced at SGL’s production site in Pune, India. Scope of supply also included civil modification services at the customer site on a turnkey basis.

 “Our innovative combined HCl synthesis and steam production units offer a great business value to our customers in the growing Indian chemical market. Together with our proven technical and engineering competence on a global scale we can help our customers to enhance their energy efficiency as the example of TCCL shows”, comments Suneet Sangam, Sales Manager at SGL Carbon India.

“By engineering and producing our units also at SGL’s production site in India, we further strengthen our position as a global process solution provider for corrosive applications leveraging our extensive expertise from our worldwide network. Realizing such ambitious projects in these challenging times of Covid restrictions shows how capable our global team is.“ says Christoph Koch, Director Sales EMEIA at SGL Carbon.

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.

• In course of the succession planning, Christian Straubhaar will take on the position as Senior Vice President Sales at Rieter Machines & Systems in Winterthur on January 1, 2021.
• Straubhaar will succeed Reto Thom who will retire.

Christian Straubhaar holds an Engineering Master’s Degree in Industrial Management from the Swiss Federal Institute of Technology in Zurich (ETH) and is a sales executive with 20 years of extensive experience in the textile industry. Recently, Straubhaar was responsible as Group Sales & Marketing Director at Itema for the world-wide sales of machines and spare parts. Prior, he held various positions in Operations and as Business Unit Head in Itema and other global textile companies.

His professional career shows a solid track record in identifying new market potentials and growing the business for the company. Straubhaar has a longstanding experience in selling to both large and small customers and developing key accounts within our industry.

Reto Thom has very successfully lead the Sales department at Rieter Machines & Systems for many years and made an enormous contribution to the success of the company.

Since the outbreak of the coronavirus pandemic, the worldwide demand for protective masks and apparel has resulted in a record number of new orders in the high double-digit millions of euros at Oerlikon Nonwoven. The meltblown technology from Neumünster is recognized by the market as being one of the technically most efficient methods for producing highly-separating filter media made from plastic fibers.

Protective equipment demands high-end nonwoven products
The rising demand for protective masks and other medical protective equipment since the start of the coronavirus pandemic and the associated global ramping up of production capacities has also resulted in an increase in the demand for nonwovens for the production thereof. Initially, this resulted in bottlenecks in the provision of meltblown filter nonwovens. To this end, there had until this point be very few producers of medical filter nonwovens outside China. Meanwhile, the demand for spunbond systems is also rising. “Due to the structure of our group, we are in the fortunate position to swiftly reallocate and free up our production capacities. This means that we are able to relatively quickly deliver not only meltblown systems, but also spunbond equipment”, explains Dr. Ingo Mählmann, Head of Sales & Marketing at Oerlikon Nonwoven, talking about the positive situation at the company.

The capacities for respiratory masks available in Europe to date are predominantly manufactured on Oerlikon Nonwoven systems. “Our machines and systems for manufacturing manmade fiber and nonwovens solutions enjoy an outstanding reputation throughout the world. Ever more manufacturers in the most diverse countries are hoping to become independent of imports”, comments Dr. Mählmann. The Oerlikon Nonwoven meltblown systems are being delivered to Germany, China, Turkey, United Kingdom, South Korea, Italy, France, North America and – for the very first time – to Australia until well into 2021.

Quality and efficiency in demand
Depending on the purpose of the application, medical PPE (personal protection equipment) should be breathable and comfortable to wear, protect medical staff against viruses, bacteria and other harmful substances and form a barrier against liquids. For these reasons, they are often made of either pure spunbond or of spunbond-meltblown combinations. Here, the meltblown nonwoven core assumes the barrier or filter task, while the spunbond has to retain its shape, while being tear-resistant, abrasion-proof, absorbent, particularly flame-resistant and nevertheless extremely soft on the skin.

All masks are not created equal – thanks to the ecuTEC+
Protection against infections such as coronavirus can only be guaranteed with the right quality.

The nonwovens can be electrostatically-charged in order to further improve the filter performance without additionally increasing breathing resistance. Here, Oerlikon Nonwovenʼs patented ecuTEC+ electro-charging unit excels in terms of its extreme flexibility. Nonwovens manufacturers can freely choose between numerous variation options and set the optimal charging method and intensity for their specific applications. In this way, even the smallest particles are still attracted and reliable separated by a relatively open-pored nonwoven. Nevertheless, mask wearers are still able to easily breathe in and out due to the comparatively loose formation of the fibers. To this end, it comes as no surprise that all meltblown systems currently destined for the production of mask nonwovens are equipped with the ecuTEC+ unit.

• Lakmé Fashion Week 2020
• Bemberg™ fibers empower “Tattva”
• Hemang Agrawal's new craft-tech collection

Smart tech fibers, contemporary style and heritage. Past, present and future are intertwined in the new ‘Tattva’ collection by famous Indian designer Hemang Agrawal who has teamed up with Bemberg™ by Asahi Kasei, the Japanese yarn manufacturer leading in both high-performative innovation and sustainability. The collection comprises textiles entirely conceived and created by the designer. A new chapter for Bemberg™ glamorous uniqueness for high-end fashion, first Japanese reality that participated at Lakmé Fashion Week 2020, the biggest fashion event in India.

Made from the smart-tech transformation of cotton linters pre-consumer materials and converted through a traceable and transparent closed loop process, Bemberg™ fibers add responsible values to the collection, matching perfectly the vision and the ethic of Hemang Agrawal, a designer with more than one eye on sustainability, innovation and deep knowledge and respect for traditional Indian crafts and culture.

Tattva debuted at the Lakmé Fashion Week 2020 and comprises 40 exquisite pieces for men and women, all inspired by the 12 Tattva – the natural elements bringing harmony in the universe, according to the Indian scriptures and tradition. Motifs representing these elements, including quirky versions of moon-phases, tigers, human mind & DaVinci’s Vitruvian man were woven into the glittering fabrics. The collection was crafted harnessing the skills of Indian handlooms artisans in the designer’s hometown Benares (Varanasi).

Tattva featured Bemberg™ brocades as the predominant textile, along with plain Bemberg™ fabrics and a few blends. The result is a magnificent touch, fabrics are distinctively smooth like silk, second skin-like, shining, and bright. On top of that, Bemberg™ yarns add a new dimension in terms of sustainability and comfort by boosting antistatic and breathable performances, amazing precious touch while being also biodegradable and compostable.

“We are so happy that we participated in LFW and collaborated with Hemang Agrawal.” Says Mr. Hideto Tanimoto, General Manager, Bemberg™ Sales and Marketing Department. “The collection has come out really wonderful and has brought out the properties of Bemberg yarn such as noble sheen, smooth and soft touch, bright colour, supple drape amazingly. I strongly believe that the collection made significant impact on the sustainable fashion scene in India. We are expecting that the collection will be successful commercially and will help the local craftsman from Varanasi.”

The collection blends crafts and technology, Indian tradition and Japanese innovation, sustainability and high-end style. Designer Hemang Agrawal says, “The dexterity which the weavers in Benares have acquired, finds few parallels in the world. Although predominantly a silk-weaving centre, many master-weavers in the city are highly skilful in handling different yarn types. Japan, on the other hand, is well-known for its advanced technologies as well as its approach towards environment and sustainability as a country. Both these facts are well-reflected in the Bemberg™ Yarn”

“During our R&D, we found that the yarn, which is available in various counts and deniers is highly adaptable. The lustre, hand-feel, strength and colour depth are very well-suited for premium textiles, which come out of our looms. For the collection ‘Tattva,’ our endeavour has been to merge the skill-set of Benares weavers with qualities of the Bemberg™ yarn, to create textiles and apparel, which transcend the boundaries of what is termed as traditional Benarasi."

With the Tattva collection Hemang Agrawal and Bemberg™ by Asahi Kasei show a new way of making fashion: merging craft & tech, cutting-edge materials and deeply rooted traditions. A stunning collection marking the rise of craft-tech, a trend going beyond the dichotomy of ancient and new, injecting the human-based into the high-tech and a futuristic imprint into heritage. Like the 12 Tattva, a new harmony takes shape, intertwined into exquisitely stylish garments.

• Significant recovery in order intake in third quarter 2020
• Order intake of CHF 425.1 million after nine months
• COVID crisis management in place
• Continuous implementation of the strategy
• Outlook 2020

The market recovery, which Rieter reported in June 2020, has continued. This is reflected in capacity utilization at spinning mills worldwide, which Rieter monitors. In April 2020, the proportion of producing spinning mills was around 40% while at the end of September 2020 this was around 90%. Against this backdrop, the Rieter Group increased order intake in the third quarter of 2020 to CHF 174.4 million (2nd quarter 2020: CHF 45.7 million). In the first nine months of 2020, the Rieter Group achieved a cumulative order intake of CHF 425.1 million (2019: CHF 524.5 million). Compared to the previous year period, this represents a decline of 19%.

Order Intake by Business Group

Due to the positive development in the third quarter of 2020, order intake at the Business Group Machines & Systems reached a total of CHF 234.5 million in the first nine months. The reason for the relatively small decline of 8% compared to the previous year is that the new machinery business was already characterized by investment restraint in the first three quarters of the year 2019. The Business Group Components recorded a reduction of 33% to CHF 116.6 million while the Business Group After Sales posted an order intake of CHF 74.0 million, a decrease of 23%. This illustrates the effects of low capacity utilization at the spinning mills, especially in the second quarter of 2020 as a result of the COVID-19 pandemic. The order backlog as of September 30, 2020, was around CHF 515 million (September 30, 2019: CHF 285 million). Cancellations were in the normal range of around 5%.

COVID Crisis Management in Place

Rieter has quickly implemented comprehensive COVID crisis management. Priority is being given to protecting employees, fulfilling customer commitments and ensuring liquidity. The necessary measures to protect employees have been implemented worldwide and the order backlog is being processed largely as planned. Rieter has introduced 40% short-time working in Switzerland and Germany for the second half of 2020. Similar measures were implemented worldwide within the scope of the available legal options. As of September 30, 2020, Rieter had liquid funds of CHF 216.7 million and unused credit lines in the mid three-digit million range in order to ensure liquidity. At the end of September 2020, net debt of CHF 1.2 million was disclosed.

Continuous Implementation of the Strategy

In recent years, Rieter has consistently implemented the strategy with the focus on innovation leadership, strengthening the business on the installed base and optimization of the costs. The company intends to forge ahead with the strategy in the coming months in order to strengthen the market position for the time after the COVID-19 pandemic. The Rieter CAMPUS is an important element of Rieter’s innovation strategy. Depending on the business situation, construction work is due to begin in the first half of 2021.

Outlook 2020

As already announced, in terms of sales and profitability Rieter expects a stronger second half of the year compared to the first half of 2020. Nevertheless, due to the deferral of deliveries by customers, Rieter will also conclude the second half of the year − and thus the full year 2020 − with a net loss. Due to the existing uncertainties, it continues to be difficult to forecast sales and profitability for the second half of 2020. For this reason, Rieter refrains from providing more specific information for the full year 2020.

• New strategic sales partnership for the Sanitized® antimicrobial polymer additives in Italy

Italy and Switzerland - SANITIZED customers in the polymer industry in Italy will profit from FERRO-PLAST’s expertise and established sales network. The Sanitized® antimicrobial additives for hygiene function and material protection for polymers will be marketed in Italy by our new sales partner.

SANITIZED and FERRO-PLAST, two experts in their fields with similar understanding of values, have joined forces; both deal in high-performance products for the Polymer industry combined with the best possible service, which begins with the conception of value-added products and their optimum use. This collaboration with SANITIZED is a good fit for the portfolio as both companies focus on innovative, customer-specific solutions.

With the addition of the antimicrobial Sanitized® additives at FERRO-PLAST, the Polymer industry gets an overall package, offering more than just products for hygiene function and material protection. As an addition to the core product services, SANITIZED supports development and production, regulatory queries and marketing through the use of the Sanitized® Ingredient Brand, which characterizes the end products within their differentiation and emphasis on quality.

The antimicrobial additives for Polymers from SANITIZED protect end products from bacterial infestation, growth of algae and mildew, material degradation, biofilms, pink stain, and odors caused by microbes. The Polymer industry uses the antimicrobial additive in flooring, industrial coatings, artificial leather, roof membranes, pool liners, tarpaulins, and all extruded products.

“FERRO-PLAST is proud to represent the prestigious and important brand Sanitized® in Italy. We are confident to have the necessary experience and skills to successfully promote these products which are leaders in the hygiene field. We are sure that especially in this particular moment, they bring a substantial support to the Italian plastic market”, says FERRO-PLAST’s Managing Director, Rodolfo Di Nardo. “The technical competence and the strong customer focus impress me about FERRO-PLAST”, confirms Michael Lüthi, Head of BU Polymer at SANITIZED AG.

With the PFAFF 4520, engineers and technicians from PFAFF have designed a full-automatic production line (CE compliant) for processing multi-layer disposable masks, which meets the requirements of "German engineering" in a unique way. The product combines 150 years of expertise in joining textile materials and a concentrated know-how of the PFAFF INDUSTRIAL and KSL brands in the areas of process control, automation and robotics.

The PFAFF 4520 is an investment in a robust and sophisticated production line (MADE IN GERMANY) with an exceptionally reliable working process. In times of Covid-19 it is so important to rely on the right equipment for the mask production and avoid costly readjustments or an unnecessary second investment!

Key facts of the unit:

-    Size of the mask: 175 x 95 mm
-    Output:  3,500 – 4,000 masks per hour
-    1-, 2- or 3 ply processing  (Non-woven/filtration fabric)
-    SPS (PLC) control of the entire mask system
-    Exceedingly quiet working process of the whole unit
-    Ultrasonic welding components from German manufacturers
-    Protective housing for occupational safety of the operator
-    Packing station + printing station for personalized masks (on request)

The machine package also includes important features in the pre- and after sales:

PFAFF technicians ensure the adjustment of the desired customer material (non-woven or similar filter material) and the number of layers (1-, 2-, 3-ply) to the machine and make a "Ready to production" installation of the whole unit at the customer.  A fast service response time in after-sales (by involvement of the PFAFF sales- and service partner on site) ensures a maximum production output.

• Fabric finishing and sanforization systems installed in the US and Turkey to enhance productivity

ST. LOUIS - Baldwin Technology Company Inc. has successfully installed six new fabric finishing and sanforizing precision spray systems in the US and Turkey. Despite the COVID-19 pandemic, the installations were completed in just 60 days, thanks to close collaboration between onsite Baldwin textile team members, local agents and remote support from the company’s product and technology center in Sweden.
For textiles, non-wovens and technical textiles, Baldwin’s precision spray technology processes a wide range of low-viscosity water-based chemicals, such as softeners, anti-microbial agents, water repellents, oil  repellents, flame retardants and more.

These systems enable fabric producers to significantly reduce chemical and water consumption, while speeding up production times and eliminating production steps, including drying and bath changeovers when switching fabric colors. “Our customers are major manufacturers in fabric dying, finishing and remoistening, and we want to provide outstanding service and support—even in times like this,” said Rick Stanford, Business Development Leader at Baldwin and the commercial leader of the US installations. “Not only does our precision spray technology enhance productivity in their process, but there is also zero waste, which goes hand-in-hand with the increased sustainability focus in the textile industry.”

In North Carolina, two new TexCoat G4 precision spray systems are now in production with major international vertical manufacturers of outdoor living, performance fabrics and automotive fabrics. In Georgia, a major vertical manufacturer of workwear and protective fabrics installed a sanfor precision spray system, which has helped the customer obtain deeper penetration of moisture into fabrics treated with durable water repellents. In Turkey, three new TexCoat G4 systems were installed in Çorlu, northwest of Istanbul, for a large producer of knit fabrics, such as T-shirts. “In Turkey, the manufacturer purchased and installed one TexCoat G4 system before COVID-19, and the customer was so pleased with the results that, during the pandemic, three more were purchased,” said Simone Morellini, Sales Manager- EMEAR at Baldwin and the commercial leader of the Turkish installations. “The systems were manufactured and installed during the lockdown, and now, all four systems are up and running, and being used heavily on a daily basis.” “With the success we have seen, we plan to apply the same strategies for upcoming installations, including the next one in Honduras: strong local management and customer coordination, combined with  effective remote support during the installation,” said Stanford.