From the Sector

Perlon®, A Serafin Group company is continuing to produce its’ quality filaments at all five sites for its’ customers in the current challenging climate. Production in China has been operating again as normal since the beginning of March after having to be temporarily halted due to the spreading of COVID-19. Production is now back up to 100%.

Production in Germany at our sites in Munderkingen (Baden-Wuerttemberg), Bobingen (Bavaria) and Wald-Michelbach (Hesse) as well as in the USA is continuing to run without any constraints. Therefore all sites are working to full capacity to fulfill all our customer orders. In particular, in the paper machine clothing area is showing an increase in sales which offsets a reduced demand in other areas such as automotive.

In the current situation, the company is doing everything it can to fulfill its’ responsibility as an employer and also as a business partner. Therefore all hygiene measures at all our sites have been significantly increased so that our employees are protected as well as possible. There is hand sanitizer in every department and all of our production lines are disinfected several times a day. It has been explained to employees, what they should do in the current climate in order to minimize risk. Where possible employees are able to work from home. Perlon® has approximately 650 employees in Germany, over 80 in the USA and more than 100 in China.

High demand for monofilament for the paper industry.

The paper industry is currently experiencing a rise in demand worldwide – and Perlon® is also benefitting from this, as customers need even more high-quality monofilament and twisted yarns for the tensioning of paper machines. For the paper machine clothing field, Perlon® produced filaments are used to manufacture press fabric, which can be used either as a conveyor belt or for moisture removal on a paper production line. Due to the high mechanical strain through the presses, polyamide monofilaments or twisted yarns are therefore almost always used. Paper industry customers have increased their production recently. Whether it’s boxes to cope with the increased demand for online deliveries or paper for hygiene purposes (which everybody can identify with), there is an increased demand worldwide. The dental, hygiene and food preparation fields are also experiencing increased demand. To this end, Perlon® offers filaments for the manufacture of toothbrushes and high-quality cleaning system brushes.

The Board of Management of SGL Carbon SE (ISIN: DE0007235301) has decided not to hold the Annual General Meeting on April 22, 2020, as planned, but to postpone it to a later date.

The cancellation of the Annual General Meeting convened for April 22, 2020, is due to the latest measures taken by the federal government, the federal states and municipalities in connection with the spread of the coronavirus (SARS-CoV-2) as well as the assessment of the Robert Koch Institute and the relevant authorities that in the following weeks infections in Germany will likely increase further. In this situation, the Board of Management decided not to hold the event on April 22, 2020, in the interest of protecting the health of our shareholders, our employees, and our service providers involved in the Annual General Meeting.

The Company will reschedule the Annual General Meeting to a later date in 2020. SGL Carbon SE will monitor the situation closely in the coming weeks and, depending on the further development of the infections, will invite its shareholders to a new date for the Annual General Meeting.

• Order intake up 7% on previous year; orders amounting to CHF 401.6 million booked in fourth-quarter 2019 (4th quarter 2018: CHF 119.0 million)
• As expected, sales significantly down on previous year, falling by 29% to CHF 760 million
• EBIT margin of 11 .2% and net profit of 6.9% of sales, non - recurring profit contribution from sale of real estate in Ingolstadt (Germany)
• Proposed dividend of CHF 4. 5 0 per share

In financial year 2019, Rieter recorded an order intake of CHF 926.1 million, which was 7% up on the prior-year period (2018: CHF 868.8 million). This development is attributable to a strong fourth quarter, in which Rieter booked orders totaling CHF 401.6 million (4th quarter 2018: CHF 119.0 million). At the end of 2019, the company had an order backlog of about CHF 500 million (December 31, 2018: about CHF 325 million).

In 2019, Rieter Group sales amounted to CHF 760.0 million (2018: CHF 1 075.2 million), which corresponds to a decrease of 29% compared to the previous year.

EBIT Margin, Net Profit and Free Cash Flow

Rieter generated an EBIT margin of 11.2% or CHF 84.9 million (2018: 4.0% or CHF 43.2 million). This includes the non - recurring profit from the sale of real estate in Ingolstadt in the amount of CHF 94.5 million. As a result of the capacity adjustment and cost reduction measures, the number of employees decreased by 11% to 4 591 (December 31, 2018: 5 134).

Net profit rose to CHF 52.4 million (6.9% of sales) and thus was significantly higher than in the previous year (2018: CHF 32.0 million or 3.0% of sales). The contribution from the sale of real estate in Ingolstadt had an impact of CHF 67.2 million (EUR 61.6 million) at the net profit level. Free cash flow in 2019 was CHF 42.3 million (2018: CHF 63.6 million). Net liquidity rose to CHF 162.1 million (December 31, 2018: CHF 150.2 million ). The equity ratio as of December 31, 2019, was 47.8% (prior-year balance sheet date: 44.6%).

We are now facing this challenge here in Bremen on the occasion of our 35th International Cotton Conference, which was to take place from 25 to 27 March. The coronavirus has been keeping the world on tenterhooks for some weeks now and, as you may have heard in the news, has also arrived in Germany and Bremen. As the organiser of an international conference, we have been forced to make a decision and it was by no means easy for us.
Due to the prevailing global threat from Covid-19, we will postpone the 35th International Cotton Conference Bremen for one year.
The World Health Authority (WHO), as well as the European and German health authorities are advising of significant health risks from transmission of the coronavirus. According to the Federal Foreign Office, data on the new virus is currently still limited, which makes risk assessment even more difficult.

In total, participants from more than 40 nations travel to Bremen for the Cotton Conference. In addition to the main conference, there are numerous side events. Many of our guests and conference participants are currently unsettled by the many negative reports. In the context of their responsibility, the organisers, the Bremen Cotton Exchange and the Fibre Institute Bremen, take the risks and concerns of all participants extremely seriously and would like to ensure planning reliability given the situation.

The 35th International Cotton Conference Bremen with the motto “Passion for Cotton” will now take place from 17 to 19 March 2021.

Clean, minimal and responsible, the collection perfectly embodies the combination of high-end looks with a sustainable vision, delivering effortless and stylish garments available in store from January 2020.

It claims to be love at first touch, and rightly so, as it celebrates women’s natural shape enhancing it with haikure’s delicate designs and ISKO™ premium denim. amae – the Italian brand’s latest collection and the latest chapter in the longstanding partnership between haikure and ISKO – is inspired by the idea of “taking care”.

Aiming at promoting the value of Responsible Innovation™, the collection delivers high-end contemporary looks resulting from the shared commitment to provide remarkable innovation while fostering a mindful approach in the fashion and denim industries.

ISKO, pioneer of responsibility and the first denim mill in the world awarded both the prestigious EU Ecolabel and Nordic Swan Ecolabel, supported the project providing amae with responsible ingredients to shape its neat looks. Clean and minimal, the garments feature ISKO Pj Soft™ which, like a gentle embrace, grants the skin a silky touch and a soft feel. Responsibly produced according to ISKO’s holistic vision based on creativity, competence and citizenship, this light and soft fabric molds and moves with the wearer, providing an all-round flattering silhouette and comfortable fit that never feel restrictive.

As part of ISKO’s 25,000+ products, this textile concept also has a certified Environmental Product Declaration (EPD®s) for its Life Cycle Assessment (LCAs), ensuring a full transparency about its environmental impact by providing the water usage and carbon footprint of 1 square meter of fabric. As signatory member of ZDHC Foundation, ISKO also avoids harmful substances and hazardous chemicals in its entire production chain, resulting in safer denim that are good for both people and the planet.

Presenting three different washes – regular and stone wash, as well as dyed –, this fashionable and responsible collection will be available in Italy, Spain and Germany starting from January 2020.

Focus on Sustainability and Climate Change

Passion for Cotton: The 35th International Cotton Conference Bremen starts on 25 March in the Hanseatic city’s historic Town Hall. But before subject-specific questions are discussed in depth in the individual sessions, the concise and inspiring keynotes by leading business experts from science and industry will draw attention to the current trends and challenges in the industry at the start of the conference. A large part of the presentations is shaped by the current discussion on environmental and sustainability issues and the resulting consequences for the global economy.

Climate Change and Sustainability

“Climate change - a storm in a teacup?” asks Kai Hughes, Executive Director of the International Cotton Advisory Committee, Washington D.C., USA, in a provocative speech. The aim of his presentation is to work out the challenges of climate change especially for agriculture and cotton production. This should form the basis for later discussion on concrete approaches and solutions within the cotton community.

With his lecture “The HUGO BOSS sustainability programme ... and what our customer has to do with it” Andreas Streubig, Director of Global Sustainability at Hugo Boss AG, Metzingen, Germany, rolls up the textile value chain from a different angle, starting at the consumer level. As a representative of a premium brand for women's and men's clothing, Streubig discusses sustainability as a strategic element of the corporate strategy and provides information on how elements of the strategy are being implemented at Hugo Boss.

Rüdiger Senft, Head of Sustainability at Commerzbank, Frankfurt am Main, Germany, looks at the changing role of banks in financing the cotton market. In addition to a general introduction to the topic of sustainability and banking regulation, Senft's presentation deals with the financing of the cotton trade from a social and ecological point of view.
The opening session on 25 March is hosted by Bill Ballenden, founder and owner of Dragontree, Swindon, UK, an online auction platform for the cotton trade. As a former cotton manager for Louis Dreyfus in Europe and Asia, Bill Ballenden has many years of experience in the industry.

Cross-Cutting Issues: Digitalisation, Gender, Value Chains

The subsequent session in the conference programme with the headline “A Wider View” is devoted to currently defining trends and important cross-cutting issues in the industry. This goes far beyond classic cotton themes.

A lecture by Mark Messura, Senior Vice President, Global Supply Chain Marketing for Cotton Incorporated, Cary, North Carolina, deals with the role of cotton in an increasingly digitally controlled supply chain. Significant keywords here are faster delivery times, vertical integration, transparency and traceability.

The presentation by Roger Gilmartin, Managing Director of Tri-Blend Consulting, Charlotte, USA, entitled “The secret recipe for timely, cost-optimised and high-quality cotton clothing” promises exciting and enlightening insights. Tri-Blend Consulting conducts studies on the performance of different cotton varieties during the entire consumption process to the finished yarn and evaluates them from an economic point of view.

Amy Jackson, from the Better Cotton Initiative, London, UK, presents ICA Liverpool's “Women in Cotton” initiative. With this commitment, the initiative aims to increase the influence of women in the cotton industry and give them a stronger voice, for example by building networks in cooperation.

Navdeep Singh Sodhi, International Strategic Management Consultant at the Gherzi Textile Organisation, Switzerland, gives an insight into the current development of the value chain for cotton, textiles and clothing in Africa. Looking ahead to the coming decades, also in view of population growth, Africa is seen as having a high potential for building economic structures to improve income and prosperity.

Thomas Schneider, Professor at the University of Applied Sciences in Berlin and active in the field of production planning and control, textile materials and materials testing will host the session. A leading light in his field, Thomas Schneider has more than 30 years of experience in scientific and application-oriented research in the textile and fibre sector, including at the Fibre Institute Bremen e.V.

So far, ROICA™ has become a global success in the market reaching in the end consumer’s wardrobe. At Première Vision, the company takes place at the Smart Creation Area, the fair’s centre of sustainability. On show in Paris premium collaborations for the wardrobe of tomorrow starting from G-Star Raw smart jeans and Licia Florio’s soft sports apparel.

“A true pioneer cannot only be the first one of the leading one. It must commit to raise the bar.” Says Shinohe Hiroaki, ROICA™ Chief Marketing Officer based in Germany. “That’s why we are working to evolve and empower the smart yarns of the certified ROICA Eco-Smart™ family with additional performances.”

The origins of both Industry 4.0 and an awareness of the need for more sustainable manufacturing methods can arguably be traced back to the year 1971.

It was in 1971 that the first microprocessor was introduced by Intel, and also that the first and perhaps now most well-known environmental campaigner, Greenpeace, was founded.

As such, a direct line can be charted from that year to today’s automated textile manufacturing machinery concepts, as well as the drive to develop more increasingly resource-efficient processes.

All of the recent innovations which have been introduced to the market by A. Monforts Textilmaschinen GmbH & Co. KG, for example, are being powered by the possibilities of Industry 4.0 and developed in response to the market demand for more sustainable production.

They include the new ‘digital twinning’ capability introduced in 2019 for all Monforts machines, with advanced sensor technologies which make it possible to access comprehensive technical machine data from any location using the company’s Smart Support and Smart Check apps. In addition, the digital twin system provides information on individual wear parts, such as, for example, converters or gears.

These latest developments have been very favourably received by Monforts customers, especially in Europe.

50th anniversary
The very first Heimtextil – the leading trade fair for the home textiles market – was also held in Frankfurt in January 1971 and Monforts customers Bierbaum Group and Konrad Hornschuch AG are amongst the German companies who were there from the very start and have attended every annual show since.

Bierbaum Group, based in Borken, is the company behind the well-known Irisette bedding brand and is celebrating its own 125th anniversary in 2020. It has also introduced products bearing the German government’s new Grüner Knopf textile seal of approval for sustainable production.

As a specialist in synthetic leathers for home surfaces, as well as vehicle interiors, Konrad Hornschuch AG, of Weissbach, has been a member of the €44 billion automotive giant Continental AG since 2016.

Representatives from both companies received memorial trophies at a special presentation held on January 7th during the 50th anniversary Heimtextil show.

The home textiles market remains very strong in Germany, with sales amounting to some €9.6 billion in 2019, according to analyst IFH Cologne.

Global growth
The first Heimtextil in 1971 was a significant success, attracting 679 exhibitors from 26 countries.

This year’s show, however, attracted a total of 2,952 exhibitors from 66 countries, reflecting not only the growth of the home textiles industry, but also the globalisation which has taken place over the last half century.

Monforts now has customers for its advanced finishing technologies around the world, with home textile customers from India and Pakistan being particularly well represented at Heimtextil 2020.

Among stand outs from Indian companies at this year’s show was the 2020 collection of Welspun India’s famous Christy England brand, inspired by botanical studies of the gardens of British stately homes. Welspun towels meanwhile benefit from the company’s HygroCotton hollow core yarn technology, produced by a proprietary spinning method which ensures they become softer, fluffier and more absorbent after every wash.

An equally ground-breaking new technology is being introduced by Trident Group, which is one of India’s largest vertically-integrated home textiles manufacturers and two years ago installed five complete Monforts finishing ranges for its new linen department.

Trident’s patented Air Rich yarns feature pores throughout their cross sections for high breathability and absorbency, as well as rapid drying.

Monforts home textile customers from Pakistan stressed the resource efficiency of their processes and products as a result of investments in advanced technology, and during the show the ‘Sustainable Pakistan’ initiative was announced.

Supported by GIZ, the German Society for International Cooperation, the initiative aims to reshape global perceptions of Pakistan’s manufacturers and their innovations. So far, twenty producers have been carefully chosen to be presented on this global platform and will help rebrand Pakistan’s textile industry at the Heimtextil exhibitions going forward.

Heimtextil’s organiser Messe Frankfurt also announced its own new alliance with the United Nations Office for Partnerships, in order to support the UN’s Sustainable Development Goals.

Constancy
Many things have changed since 1971 and home interiors are certainly no longer predominantly orange and brown – and perhaps unlikely to ever become so again.

It’s clear, however, that there has been a constancy in the push to consistently improve textile technologies, processes and products that may have originated in Europe, but have subsequently spread around the world.

And the significance of both microprocessors and sustainability in 2020 could only have been guessed at back in 1971.

In the 2019 `Hot-Button´ report issued by the forest conservation organisation Canopy, Kelheim Fibres attained a “green shirt” ranking. Many fashion brands already value the `Hot-Button´ report as a reliable indicator for sustainability for viscose fibre producers.

Raw material wood sourced only from certified sustainable forestry
The CanopyStyle initiative aims to achieve that no wood from ancient and endangered forests is used to produce viscose fibres. The audited companies must prove that they avoid these fibres and have implemented appropriate rules and procedures to check the origin of the wood. Performance in the areas environmental protection and innovation have been examined and evaluated by qualified external auditors; the report will be posted publicly in the first quarter of 2020.

Sustainable fibres for a changing market
“For years now Kelheim Fibres has consistently recognised the importance of sustainability and environmental protection. Now that resource saving and alternatives to plastics are of focal interest to the public and to the economy, our products are meeting with an even better reception from the market. Fibres produced in Germany with low emissions from certified sustainable timber meet the needs of customers seeking products that have a low risk of sourcing from ancient and endangered forests. “Having been awarded a `green shirt´ in the `Hot-Button´ ranking once again underlines this absolutely clearly!” says Matthew North, Commercial Director at Kelheim Fibres.

DOMOTEX asia/CHINAFLOOR (March 24-26) – the leading trade show for carpets and floor coverings in the Asia Pacific region - expands the design and conference area and welcomes new and returning brands.

Shanghai - For the 22nd edition, each flooring sector will have a theme. The highlighted product category in wood is solid wood for ground heating systems. The category is taking over the entire hall showing new technologies, new designs and new products in floor heating. Solid wood for ground heating systems is growing in China – according to China National Forest Products Industry Association, around 80% of China's wood flooring brands have developed the product.

At the same time the market share is increasing by more than 30% annually. It is expected that by 2025, the market size of solid wood for ground heating systems will reach RMB 10 billion (approx. 1.4 billion USD). The international and local market leaders, such as Junckers, Foglie d’Oro, Edelholz, IBF, Teclic, Nature, Fudeli, Bloor, Jinyi, Licher, Nuogao and Moganshan have already confirmed their participation at the show. Also in this hall we see the latest developments in the market in the dedicated InnovAction campaign.

The resilient flooring section will be spread out to 69,500 sqm gross, featuring Stone Plastic Composite (SPC) flooring. Among the resilient halls, there will be an “Inspiration Hall”, housing InnovAction campaign and design forum, where famous interior designers will educate the audience on using resilient flooring in interior. The InnovAction will be upgraded by showcasing the new products within matching interior spaces. This new way of presenting the InnovAction products is ideal for both manufacturers to share the ideas and for visitors to keep up to date with the market trends.

Carpet section will promote carpet as a driving force for interior design, with a dedicated hall being the epicenter of home and design carpets and the host hall for the Luxury Brands Carpet Show – a showcase of the most sought-after international high-end carpet design brands. After the successful first edition in 2019, Chinese Original Carpet Design Show comes back to promote the works of young Chinese carpet designers. Country pavilions from Germany, Belgium, Iran and Turkey will also showcase their products among the carpet halls. Traditionally DOMOTEX asia/CHINAFLOOR has been focused on B2B, however due to the market changes, the end users are more and more welcome to the show. In order to give the oriental carpets and rugs the spotlight and follow the trends, Indian and Afghanistan pavilions will be creating a new area - “Treasure of Orient”.

In 2020, DOMOTEX asia/CHINAFLOOR will cover more than 185,000 sqm of gross space, taking up 16 halls at the Shanghai New International Expo Center. Five of the exhibition halls will be dedicated to carpets and rugs, four to wood, bamboo and other hard floors, 2 to FLOORTECH asia and 5 halls to resilient floor coverings. In 2019, the show gathered 1,579 exhibitors from 36 countries and attracted 66,875 trade visitors, of which 15,092 international, coming from 107 nations.