From the Sector

As a global leader in the chemical industry, SABIC will present its full Fluids product portfolio at IESD, the leading surfactants and detergents show for China and Asia, in Shanghai, April 24 -26.

SABIC Specialties provides high value, technologically advanced chemical derivatives for use in a wide range of applications. Employed as surfactants, detergents, emulsifiers, emollients and thickeners for consumer products ranging from cosmetic and personal care, home care and pharmaceuticals, to industrial products like textiles, paints and coatings. Additionally, these products find their way into industrial uses such as specialty lubricants, crop protection, and oil & gas applications.

A key aspect of SABIC Specialties Fluids business - not only within China, but for the broader Asia region - is its ability to deliver the added value only a dedicated, local team with stocked inventory and flexible packaging options, can supply. In addition to local team know-how and readiness, SABIC’s Chinese operations are supported by a global team with significant expertise and production facilities around the globe. Focused on creating the right balance of properties and performance to meet the ever-increasing needs of consumers and industry, SABIC works closely with specifiers and formulators to develop vital constituents for game changing products.

At IESD SABIC will be introducing SAPEG 400 PH, its new pharma grade PEG400, conforming to USP-NF monograph and manufactured to EXCiPACT Good Manufacturing Practices of pharmaceutical excipients. It is used in liquid preparations as a viscosity modifier, in ointment and suppository bases as a melting point regulator, moisturizer and lubricant and in the preservation of pathological specimens. It can be used in the manufacturing of creams, lotions, toothpastes and in soaps as a humectant.

“SABIC Specialties has long been a pioneer in developing innovative chemicals and polymers to support the production of the latest and most advanced domestic and industrial applications”, said Eric Jaarda, Senior Manager, Fluids Marketing Global at SABIC Specialties. “We are proud to present some of our most advanced and versatile offerings at this year’s IESD in Shanghai and to demonstrate our commitment to the Chinese and broader Asian market.”

In addition to SAPEG 400 PH, SABIC will also be showcasing the following:

• Natural Fatty Alcohol (C12-14) Ethoxylates (SABIC® SABICOL L2/L3/L7/L9) - both colorless and odourless, this is a range of versatile non-ionic surfactants. Supplied as liquids or as a paste, they are efficient water in oil emulsifiers and readily biodegradable.
• Synthetic Alcohol (Isodecyl and Isotridecyl Alcohol) Ethoxylates (SABIC® SABICOL DA5/DA7/TA5/TA6/TA7/TA8/TA9) - a series of fast wetting, low odor and biodegradable non-ionic surfactants.
• Castor Oil Ethoxylates (SABIC® SABICOL EL30/40/55) - supplied in liquid form or as a paste, they are completely miscible in water and many organic solvents. Non-toxic and non-irritant, they are employed as emulsifiers in both domestic and industrial applications.
• Polyethyleneglycols (SAPEG200/300/400/600) - consisting of a distribution of polymers of varying molecular weights, these are colorless and odorless liquids. Non-toxic and non-irritant, they are used as humectants, lubricants, solvents and viscosity modifiers in a range of applications.

• Strenge Qualitätsnachweise für Objekttextilien

Deko-, Möbelstoffe und Gardinen haben eine ganze Reihe von Prüfungen zu bestehen, bevor sie in Krankenhäusern, Seniorenheimen, Hotels, Kreuzfahrtschiffen, Theatern, Kitas oder Schulen eingesetzt werden dürfen. Je nach Verwendungsbereich in öffentlichen Gebäuden muss beispielsweise der Nachweis der Schwerentflammbarkeit erfüllt sein.

„Es gibt eine Vielzahl an Anforderungen für nahezu jeden Bereich, die wir als deutscher Textilhersteller in Form von Zertifizierungen und Zulassungen zu Sicherheit, Langlebigkeit und Umweltverträglichkeit zu erfüllen haben“, erklärt Frank Wiedemann. Er ist Leiter der Qualitätssicherung bei Schmitz Textiles mit Produktionsstätte im nordrhein-westfälischen Emsdetten. Nur, wer wie Schmitz Textiles zertifiziert ist, darf Stoffe in bestimmten Märkten oder Anwendungsfeldern anbieten. drapilux, eine Marke von Schmitz Textiles, gehört zu den europaweit führenden Herstellern von flammhemmenden Stoffen für den Objektbereich.

Durchgeführt werden die Prüfungen von unabhängigen, akkreditierten Prüfinstituten und/oder staatlichen Behörden nach nationalen und internationalen Normen oder EU-Richtlinien. Auf der einen Seite sind das Management-Zertifizierungen für Qualität, Umwelt und Energie. Schmitz Textiles ist nach ISO 9001/ ISO 14001 und ISO 50001 durch die Deutsche Gesellschaft zur Zertifizierung von Managementsystemen (DQS) bewertet, auditiert und zertifiziert worden.

Auf der anderen Seite stehen die Produktzertifizierungen. „Vor allem zu erwähnen, ist die jährliche Fremdüberwachung unserer schwerentflammbaren Möbel-, Dekorationsstoffe und Stores von drapilux“, so Wiedemann. Einmal jährlich kontrolliert das staatliche Materialprüfungsamt Nordrhein-Westfalen (MPA NRW-Brandprüfzentrum Erwitte) die drapilux-Produkte auf Einhaltung der Schwerentflammbarkeit nach der DIN 4102 (Baustoffklasse B1). drapilux flammstop-Qualitäten sind somit nachweislich als schwerentflammbar eingestuft und weisen – im Gegensatz zu PVC-haltigen Stoffen – auch eine sehr geringe Rauchgasentwicklung im Brandfall auf.

Freiwillige Zertifizierung für noch mehr Sicherheit

Mit dieser jährlichen Fremdüberwachung geht Schmitz Textiles sogar über die gesetzlichen Vorschriften hinaus. „Die Zertifizierung zeigt an, dass unsere Produkte jederzeit die hohen Anforderungen des Brandschutzes für Baustoffe erfüllen. Damit können unsere Kunden sich der Qualität stets hundertprozentig sicher sein“, sagt Wiedemann.

drapilux-Textilien werden nicht nur nach deutschem Recht, sondern auch nach europäischen und internationalen Brandschutznormen geprüft. In Frankreich beispielsweise muss das Prüfergebnis M1 erzielt werden, das einen noch höheren Stellenwert als die deutsche B1-Zertifizierung hat. Der drapilux-Stoff wird hierzu nicht an den Kanten, sondern an der Oberfläche mittels Gasflamme entzündet. Das Textil darf höchstens fünf Sekunden brennen und darf nicht brennend abfallend sein.

Um die B1-Kriterien zu erfüllen und damit als schwer entflammbar eingestuft zu werden, müssen die von akkreditierten Prüfinstituten getesteten drapilux-Textilien nach einem Brandschachttest noch eine mittlere Restlänge von mehr als 15 cm aufweisen und die mittlere Rauchgastemperatur von 200 Grad Celsius unterschreiten.

Doppelt hält besser: Tests im eigenen Labor

„Vor der externen Prüfung wird jeder Stoff bei drapilux aber auch schon inhouse genauestens untersucht“, erklärt Wiedemann. Schmitz Textiles hat ein vollständig eingerichtetes Prüflabor, um Eigenprüfungen nach vorgegebenen Standards selbst durchführen zu können. „So bekommen wir bereits in der Entwicklung von neuen Textilien Sicherheit, da Brandschutzprüfungen zwischen den einzelnen Entwicklungs- und Produktionsschritten erfolgen können“, sagt der Leiter der Qualitätssicherung. Schmitz Textiles investiere viel in die Sicherheit der Produkte, indem verordnungs- und gesetzeskonforme Produktions- und Qualitätssicherungsprozesse etabliert wurden. „Das kostet Geld“, so Wiedemann, „stellt aber einen klaren Vorteil für die Verwender von drapilux-Produkten dar.“

Besonderheit Maritim-Sektor

Auf Schiffen ist es besonders wichtig, den Brandschutz genauestens zu beachten und einzuhalten. Keine Fluchtmöglichkeiten und nur eingeschränkte Optionen der Brandbekämpfung machen präventive Maßnahmen unabdingbar.

Für Schiffsausrüstungsmaterialien gilt die Einhaltung des Internationalen Übereinkommens zum Schutze des menschlichen Lebens auf See (SOLAS). Um dies zu erfüllen, müssen Möbel-, Dekorationsstoffe und Stores nach fest definierten Prüfmethoden (FTP-Code 2010) geprüft und zugelassen werden. In Europa wird dieses durch die Richtlinie 2014/90/EU geregelt.

Nach der aktuellen Richtlinie 2014/90/EU haben alle Händler oder Einführer von Schiffsausstattungsmaterialien den Artikel 14, Absatz 3 zu beachten. Dieser Artikel besagt, dass jeder Einführer oder Händler als Hersteller gilt und entsprechend der Richtlinie die Pflichten des Herstellers nach Artikel 12 erfüllen muss, wenn er Schiffsausrüstung unter seinem eigenen Namen oder seiner eigenen Handelsmarke in Verkehr bringt oder ein EU-Schiff damit ausstatten möchte.

„Diese Besonderheit bei Schiffsausrüstungsmaterialien muss in Europa zwingend beachtet werden“, sagt der Experte. „drapilux-Maritimstoffe weisen die Zulassungen – also Modul B + D – einer europäisch notifizierten Stelle auf und können somit bedenkenlos auf allen Schiffen weltweit eingesetzt werden“, so Frank Wiedemann.

Frank Wiedemann ist bei Schmitz Textiles u. a. dafür verantwortlich, dass die internationalen Brandschutznormen eingehalten werden und beantwortet Anfragen zur REACh – der Europäischen Chemikalienverordnung zur Registrierung, Bewertung, Zulassung und Beschränkung chemischer Stoffe. Die REACh gilt als eine der strengsten Chemikaliengesetze der Welt.

• Connect people, data and processes with Lectra’s latest solutions to power up design and development teams

Paris – Lectra, the technological partner for companies using fabrics and leather, introduces collaborative solutions specifically developed for design and product development teams, enabling fashion companies to affront tighter deadlines and handle wider product mixes with speed and serenity.

With the rise of e-commerce, digitally dependent consumers expect personalized, innovative fashion delivered to their doorstep at the click of a mouse.

Fashion companies are struggling to keep up with consumer demands and looking for new ways to speed up design and development without compromising quality. Design teams work faster than ever to deliver fresh, eye-catching collections. Product development teams rush to transform new designs into consumer-ready products. Given the accelerated pace of the fashion marketplace, information sharing has become vital for these teams.

Lectra has developed two new solutions to fulfill the specific needs of these teams, Lectra Connected Design and Lectra Connected Development. These solutions deliver collaborative environments that integrate business applications to aggregate, standardize and store data from all design and product development stages. These innovative solutions make every-day working life less stressful by allowing criteria-based searches, inciting users to capitalize on data links, and providing them with innovative tools and services to speed up their processes.

Lectra Connected Design facilitates collaboration between textile and fashion designers, colorists, graphic designers, technical designers and their managers by providing design teams with a connected environment. Team members can access the platform via their Lectra Kaledo® design software and Adobe® Creative Cloud, share inspiration and review collections together or upload inspirations via dedicated mobile apps. This solution gives users the visibility needed to streamline, automate and monitor the entire design process to ensure that they remain creative under severe time constraints.

In the same way, Lectra Connected Development connects patternmakers, graders, technical design teams, managers, cost and margin specialists, marker makers and sample teams through data. It allows team members to connect through Lectra Modaris® 2D and 3D patternmaking software and Lectra Diamino® Fashion marker-making software. Thanks to the wide range of standard libraries and mobile applications provided, teams will improve the efficiency of technical specifications creation. The automation of business processes and real-time communication allow product development teams to avoid errors and deliver the right product quality and fit.

“We recognize first and foremost that today’s fashion industry professionals need to feel well-equipped and at ease in order to perform well under tight deadlines,” explains Céline Choussy Bedouet, Chief Marketing and Communications Officer, Lectra. “We are confident that by introducing a new and easy way of collaborating through sound data management, both offers will help design and product development teams work faster and more easily to build quality into the products they design and develop. That way, they can reach their fullest potential as key contributors to their companies’ success.”

• Revenue increased by 5.9 percent to EUR 2.26 bn
• EBITDA up 17.3 percent to EUR 502.5 mn
• Dividend proposal of EUR 3.00/share plus a special dividend of EUR 2.00/share
• New brand strategy to generate a strong message to consumers
• Limited visibility for coming quarters

In 2017, the Lenzing Group reports its best financial performance ever with record revenue and earnings due to a better product mix and higher selling prices in combination with a generally favorable market environment.

Group revenue grew by 5.9 percent in the 2017 financial year to EUR 2.26 bn (2016: EUR 2.13 bn). Group earnings before interest, tax, depreciation and amortization (EBITDA) improved by 17.3 percent to EUR 502.5 mn (2016: EUR 428.3 mn). The corresponding EBITDA margin rose to 22.2 percent (2016: 20.1 percent). Earnings before interest and tax (EBIT) increased by 25.2 percent to EUR 371 mn, resulting in a higher EBIT margin of 16.4 percent (2016: 13.9 percent). The net profit for the year totaled EUR 281.7 mn, a rise of 23 percent from the prior-year figure of EUR 229.1 mn. Earnings per share in the 2017 financial year amounted to EUR 10.47 (2016: EUR 8.48).

The Management Board and the Supervisory Board will propose at the upcoming Annual General Meeting a stable dividend of EUR 3.00 per share plus an increased special dividend of EUR 2.00 per share (2016: EUR 1.20 per share). In total, the dividend will amount to EUR 5.00 per share, corresponding to a dividend payment to shareholders of EUR 132.75 mn.

“The Lenzing Group looks back at a very successful year 2017. We continued to implement our corporate strategy sCore TEN with great discipline and focus on our investment projects and successfully captured value in a positive market environment. Our commitment to innovation and customer centricity was underpinned by the opening of an application innovation center in Hong Kong and the creation of the new sales and marketing office in Turkey. In line with sCore TEN we decided to revamp our brand architecture and image to sharpen Lenzing’s corporate and product profiles for customers and consumers. We want to put a stronger emphasis on our ambition to make the textile and nonwoven market more sustainable”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group.

“We are very positive about our chosen strategy as it will help us to be more resilient as we expect more headwinds in the upcoming quarters”, he adds.

• Lectra – ESCP Europe ‘Fashion & Technology’ Chair round-table event hears panelists emphasize the need for fashion companies to embrace Industry 4.0.

Paris, February 27, 2018 – Lectra, the technological partner for companies using fabrics and leather, the French business school ESCP Europe and their joint ‘Fashion & Technology’ Chair explored the impact of Industry 4.0 on fashion’s value chain during a recent insightful round table discussion at ESCP Europe’s London campus.
For the participants Robert Diamond, Founder and CEO, Fernbrook Partners; Dan Hartley, Global Head of Digital Commerce, AllSaints; Laëtitia Hugé, Vice-President, Product Marketing, Lectra; Pierre Mercier, Senior Partner and Managing Director, Boston Consulting Group; and Evelthon Vassilou, CEO, Alison Hayes, there was consensus. Industry 4.0 represents unparalleled opportunities to take the fashion industry forward.

From brand to manufacturer, panelists from across the value chain emphasized the necessity for the industry to embrace the alliance between man and machines to leverage massive benefits, from quicker decision-making to cost-reduction.
Exploring the advantages of Industry 4.0 technology, Evelthon Vassilou commented: “Interpreting the data of what is, and isn’t, selling should help to speed up decisions. You can react very quickly across the entire supply chain, and either stop producing something unsuccessful or ramp up production if successful. Data and data analytics is not sufficient, to succeed this also requires a high degree of trust and integration between retailers and suppliers.”

“It’s about using technology to deliver continuous improvement in everyday business,” said Robert Diamond. “People are not good at making a large volume of repeatable decisions with many different data inputs”. Identifying where machines, and where people, bring value is an important part of embracing Industry 4.0. “If the business decision, or the outcome of the resolution tomorrow, is pretty much the same as what happened yesterday, then there is a chance for machine learning to help improve the situation.”
For Pierre Mercier, technology propelled by Industry 4.0 is disrupting former sources of competitive advantage, “forcing companies to rethink how they want to compete in their respective industries, and how to use data to compete differently. The common denominator in the fashion ecosystem is that everyone is facing the opportunity for a step change and need to figure out where to double down and accelerate their transformation.”

“Agility and flexibility are increasingly important for fashion players. Cutting-edge technology is supporting the fashion industry as it steps into the 4.0 era, ensuring businesses have the right solutions in their own ecosystems, to effectively harness the right data to make the right decisions,” stated Laëtitia Hugé.

At UK fashion brand AllSaints, valuable data harnessed from the net promoter score is paramount for their business. “We take customer feedback very seriously and we use it as a framework for our internal roadmap - from a tech and development point of view, through to design and fit, the customer is at the heart of everything we do,” stated Dan Hartley. In addition, he underlined that using technology across communications “will be huge going forward for AllSaints. From supply chain to store teams, we aim to use a cloud-based system that works within our own eco-system, complementing our agile model.”
The round table was moderated by the co-director of Lectra-ESCP Europe ‘Fashion and Technology’ Chair Valérie Moatti.
 

METALBOTTONI has drawn up its new strategy for the year 2018, based on a targeted trade fair
schedule and on many product innovations. These innovations are part of a marketing approach
which is more and more branding ingredient-oriented, in order to highlight the added value
of the accessory as a component characterising and enhancing product recognition, as well as
strengthening its consulting activities for customers, thus offering true excellence in service.
There are three main elements pointing to a positive moment for METALBOTTONI: its recent
outstanding performance in double-digit on foreign markets (most notably in the northern
European region), the consolidation of consulting and support services aimed at redesigning the
perspective on the world of accessories, and its product range extension. The fourth pillar, actually
a fixture at METALBOTTONI, is sustainable innovation with the protocol called NO IMPACT which has
made a huge step forward thanks to new technologies which halved water consumption compared
to previous performances of the system, obtaining also better results in a shorter processing time,
saving electricity as well.

An ongoing pathway
There are many novelties to be displayed by METALBOTTONI at three of the most important events
in the industry early in the new year. The company from Bergamo will be present at Munich Fabric
Start (30 January – 1 February), then at Milano Unica (6-8 February), and finally in Paris for the new
edition of Première Vision Accessories (13-15 February).

At this year's Heimtextil, which took place from 9-12 January in Frankfurt, Trevira impressed visitors with a brand new fair concept. The company worked together with sixteen of its biggest customers to create a joint booth covering 1,305 square metres of Hall 4.2, drawing a large crowd.

Head of Marketing, Anke Vollenbröker, explained, "Thanks to our new approach and booth concept, we were able to present our brand Trevira CS in an open and welcoming manner plus highlight the good relationship we have with our customers."

Trevira CEO Klaus Holz added, "We are really pleased with the very positive feedback we have had from all sides in response to our grand Trevira CS joint booth. We would like to thank everyone who has contributed to the booth's success. The extremely positive market reaction has reassured us that this is a concept we can build on in the future."

A Trevira exhibition formed the centrepiece of the joint booth, showcasing the winning fabrics from the 2018 Trevira CS Creativity Competition, which this year featured "Colour" as its major theme. At the heart of the display, visitors could find out more about Trevira with the help of twelve tablets providing information in a variety of formats, including a staff presentation and a flyer about the new Trevira Sinfineco® brand.

Encircling this core and thereby completing the joint booth concept, sixteen major customers grouped their individual stands around this centrepiece to display their own new Trevira CS collections for residential and contract usage. The customers joining Trevira to create the booth were Baumann Dekor Ges.m.b.H., Engelbert E. Stieger AG, FIDIVI Tessitura Vergnano S.p.A., Georg + Otto Friedrich, Jenny Fabrics AG, Johan van den Acker Textielfabriek B.V., Mattes & Ammann GmbH & Co. KG, Pugi R.G. S.R.L., Spandauer Velours GmbH & Co. KG, SR Webatex GmbH / Getzner Textil AG, Swisstulle AG, Tessitura Mario Ghioldi & C. srl, Torcitura Fibre Sintetiche S.p.A., Torcitura Lei Tsu S.r.l. / Ilcat S.p.A., Vlnap a.s. / Wagenfelder Spinning Group and Wintex S.r.l..

Another major section of the Trevira booth was dedicated to the world of acoustics. Increasingly, customers are (re)discovering textiles as a way to significantly improve the quality of room acoustics, and this part of the booth also attracted numerous visitors.

A special highlight at the joint booth were the Trevira CS sports shoes, worn by Trevira staff as a key element of the brand's trade fair outfit. The shoes are an Adidas Originals Special Edition of the iconic Stan Smith Silhouette, which Adidas manufactured in cooperation with Kvadrat.

In keeping with annual tradition, the new Trevira CS Gold and Silver Club members were announced during the Heimtextil fair. The new members were presented with their awards at a formal ceremony on Tuesday evening (9 January).

Sanitized®Odoractiv 10 with patented, dual-action technology

SANITIZED AG presents a new unique dimension to odor-management for functional polyester textiles. The newly developed wash-resistant Sanitized®Odoractiv 10 has a dual-action effect: on the one hand it prevents the bacteria from docking on the textile, and on the other, it adsorbs odors whilst the garment is being worn. The underlying technology that has been further developed was awarded the Swiss Technology Award. Goodbye permastink!

Manufacturers of functional polyester textiles from all over the world face the same challenge: freshly washed garments develop an unpleasant odor even after a short wearing period. The cause of this undesirable effect is not the human perspiration itself, but the bacteria that break down the perspiration. This process of decomposition generates the characteristic sweet, pungent smell. Once the bacteria, or the odor molecules, have penetrated into the surface of the polyester textile, they remain there permanently. Machine wash cycles and special detergents will never completely eliminate them. The bacterial colonization produces a biofilm on the polyester, which not only causes unpleasant odors, but also has a negative impact on the properties of the material.

Surface modulation with anti-adhesive properties
This is exactly where the new, dual-action technology from SANITZED AG comes into play: the surface of the textile is "coated" with Sanitized®Odoractiv 10 in the padding process. This creates a protective film on the surface of the textile. The bacteria use this anti-adhesive protective film as the basis for latching onto the garment. The bacteria can therefore be completely washed out in a normal wash cycle, consequently preventing any biofilm from forming. An anti-adhesion test method was developed in cooperation with EMPA to prove this Wash Effect.

The second advantage: Sanitized®Odoractiv 10 has a high adsorbing effect. Odors are "trapped" and removed during a normal wash cycle. The new product is the result of a technology that has been further developed and was awarded the Swiss Technology Award. The odor adsorption is identified using GC-MS.

As the Product Manager at SANITIZED AG, Urs Zihlmann, succinctly puts it: "Sanitized®Odoractiv 10 marks the end of permastink in polyester textiles." Sanitized®Odoractiv 10 can be combined with other Sanitized®products, in particular with products based on zinc pyrithione. The treatment does not influence the feel of the final treated textile.

Wash-resistant, sustainable and still "no nano"
The odor-reducing function is clearly still going strong even after 50 wash cycles. This is even the case if garments are washed at 30°C, either by hand or in the machine, meaning consumers save on water and energy, not to mention that the piece of clothing will look great for longer.

As with all its other products, SANITZED AG does not use any nano technology. The Hohenstein Institute has awarded the company the rating Skin Friendly, the bluesign®registration is underway. The product also bears the label Eco Passport by OEKO-TEX®.

"The unique, dual Odor Control Function of Sanitized®Odoractiv 10 enjoys a unique position in the market and it furthermore fulfills two market requirements: the prevention of permastink and the minimization of odor intensity during wear. Almost all manufacturers of functional polyester textiles are confronted with this problem," commented Urs Zihlmann. "The new technology creates tangible added value for consumers. This is a competitive differentiating
advantage for global marketing."

As with all other products, the service provided by SANITIZED AG includes technological advice before and during production, in the definition of the verified efficacy and in the use of the Sanitized®Ingredient Brand for promotional purposes.

Gorham, ME, USA – Montalvo, international specialists in web tension control, has promoted Bryon Williams to Director of Sales and Marketing. Mr. William’s will oversee Montalvo’s North America sales efforts, and global marketing strategy with an emphasis on building relationships within existing and new industries, managing Montalvo’s internal and external sales team, and continuing to further Montalvo’s marketing strategy. Previously Mr. Williams worked as Montalvo’s Global Marketing Manager.

Montalvo’s CEO Robin Goodwin says “Bryon has been with Montalvo since 2010, during which time he has shaped and elevated our global branding and marketing strategy while helping to manage our product portfolio. Bryon is highly committed to delivering excellence both internally and externally, directly benefitting our customers and his colleagues. He will bring this commitment and dedication to his new role, to grow Montalvo even further.”

Before Montalvo, Mr. Williams specialized in customer communication and marketing coordination at JobsintheUS.com and Sunday River Ski Resort. Mr. Williams attended Bryant University and earned a Bachelor’s in Business Administrant in Marking and Communication and is currently earning his Masters of Business Administration in Leadership from Saint Joseph’s College of Maine.

Beijing - Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017.

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.   

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.” 

About JD.com, Inc.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017, JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

About Tencent Holdings Limited

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China. Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth. Tencent invests heavily in people and innovation, enabling us to evolve with the Internet. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, statements regarding the expected closing of the transactions and the quotations from management in this announcement are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to, those included in JD.com’s and Vipshop’s filings with the SEC and in Tencent’s filings with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and none of Tencent, JD.com or Vipshop undertake any duty to update such information, except as required under applicable law.