From the Sector

AkzoNobel has published its digital Report 2022, which gives details of the company’s ongoing transformation during a challenging year of persistent worldwide uncertainty.

The Report 2022 website includes coverage of AkzoNobel’s financial results and key business developments, while the company’s progress on its sustainability ambitions is highlighted throughout.

The online report offers a wide range of interactive content and infographics. Visitors can also make use of various tools to compare key data and download tables.

Meanwhile, the Sustainability statements – traditionally one of the most visited sections – has been revamped and is themed around the key areas of climate change, circularity, and health and well-being. Several case studies also feature prominently.

• Sales of CHF 890.3 million in second half-year 2022
• EBIT margin of around 2% expected for full year 2022
• Order intake of CHF 1 157.3 million in 2022; order backlog of around CHF 1 540 million as of December 31, 2022
• Preparations for ITMA 2023 on schedule
• Implementation of action plan to increase sales and profitability ongoing
• Rieter site sales process on schedule

For Rieter, in addition to the geopolitical uncertainties, the 2022 financial year was characterized by three main challenges:
Due to the rapid rise in inflation, the exceptionally high order backlog of around CHF 1 840 million at the beginning of 2022 was processed at significantly higher costs. It was only possible to offset these higher costs in part by means of price increases and other remedial measures.

In order to safeguard deliveries, it was necessary to compensate for serious material bottlenecks, particularly in electronic components, which resulted in considerable additional development expenditure.

Major expenses were also incurred in connection with the acquired businesses (Accotex, Temco and Winder).

Sales
The realization of sales from the exceptionally high order backlog developed better than expected. With sales of CHF 1 510.9 million, Rieter achieved an increase of 56% compared with the previous year (2021: CHF 969.2 million). In the second half of 2022, especially in the fourth quarter, the measures introduced to address material bottlenecks had a positive impact. Consequently, sales increased to CHF 890.3 million compared with the first six months (first half-year 2022: CHF 620.6 million).

EBIT margin
The trend in the EBIT margin was strongly influenced by substantial cost increases, which could only be offset in part through price increases and other remedial measures. In addition, to compensate for material shortages, expenses were incurred in connection with the development of alternative solutions and the acquired businesses.

Rieter succeeded in improving profitability compared with the first half of 2022 due to the higher sales volume and offsetting measures to compensate for increased costs, and expects a positive EBIT margin of around 2% for the full year 2022 (2021: 4.9%).

Order intake
In line with expectations, the order intake of CHF 1 157.3 million in 2022 was below the record year of 2021 (CHF 2 225.7 million). The market situation is characterized by investment restraint due to geopolitical uncertainties, higher financing costs and consumer reticence in important markets.

Order backlog
The company had an order backlog of around CHF 1 540 million at the end of 2022, which thus extends well into 2023 and 2024. In 2022, Rieter recorded order cancellations of less than 10% of the order backlog of CHF 1 840 million at the beginning of the year.

Preparations for ITMA 2023 on schedule
Rieter has continued to boost its innovative capability and, in order to further extend its technology leadership, will present new innovative solutions at ITMA 2023 in Milan.

Action plan to increase sales and profitability
Implementation of the action plan to increase sales and profitability is ongoing. With regard to the profitability of the order backlog, which remains high, the implemented price increases in combination with a favorable trend in costs, particularly in logistics, are having an impact. In addition, progress was made in eliminating material bottlenecks and reducing expenses for the three acquired businesses.

Rieter site sales process
The sales process for the remaining land at the Rieter site in Winterthur (Switzerland) is proceeding according to plan. In total, around 75 000 m² of land will be sold. The Rieter CAMPUS is not part of this transaction.

Results press conference 2023
Rieter will provide further details on the 2022 financial year and an outlook for the 2023 financial year on March 9, 2023.

The Woolmark Company, the Italian wool fabric mill Vitale Barberis Canonico (VBC) and Haelixa took part in a trial to trace Australian wool fibers up to the final fabric.

Funded by Australian woolgrowers, The Woolmark Company (TWC) is an enterprise that focuses on investments that enhance the profitability, international competitiveness, and sustainability of Australian wool. In their operations, TWC seeks to be transparent and accountable. In line with this strategy, traceability is necessary to ensure transparency and maintain the credibility of TWC.

In December 2021, Haelixa marked wool fibers with their DNA tracing solution. There are infinite DNA markers that could be produced and used to indicate a specific origin, supply chain, material, or particular collection. In this case, a single DNA has been applied to greasy wool and a second DNA marker to scoured wool. The first DNA identifies the origin of the Australian wool, while the second determines the manufacturer where the wool has been further processed; at Vitale Barberis Canonico mill.

Samples were collected from various production stages, where a qPCR test was used to detect each specific DNA marker. Haelixa uses a “Key-Lock” system to detect a marker; one needs to know the particular DNA to screen for, ensuring that the system is tamper-proof. The DNA markers stay safely embedded in the product, enabling traceability of greasy and scoured wool up to greige fabric and finished fabric, respectively.

With increasing cost pressure and competition in the wool fabric market, traceability is becoming a prerequisite to proving authenticity and origin. TWC and Vitale Barberis Canonico support the culture of sustainability and collaboration.

• Carbios strengthens its Board of Directors with the appointments of Prof. Karine AUCLAIR, Sandrine CONSEILLER, Amandine DE SOUZA and Mateus SCHREINER GARCEZ LOPES
• Carbios has reached its CSR objective of 60% independent directors ahead of 2024 target date, and has increased its female representation

Carbios‘four new members to its Board of Directors:  Prof. Karine AUCLAIR, professor of Chemistry at McGill University, Sandrine CONSEILLER, former CEO of Aigle, Amandine DE SOUZA, General Manager of LE BHV MARAIS, Eataly and Home, DIY and Leisure Purchasing at Galeries Lafayette Group, and Mateus SCHREINER GARCEZ LOPES, Global Director for Energy Transition and Investments at Raizen, have all been appointed members of Carbios’ Board of Directors.  In the new structure, Prof. Karine AUCLAIR succeeds Jacqueline LECOURTIER, Sandrine CONSEILLER succeeds Jean FALGOUX, Amandine DE SOUZA succeeds Alain CHEVALLIER, and Mateus SCHREINER GARCEZ LOPES succeeds Jean-Claude LUMARET.

Three of the new members have strong, proven expertise in various industries covering fashion, retail and energy, as well as business development and senior executive management in high-growth markets and sectors around the world.  The new scientific expertise will also help enhance and advance Carbios’ research into biological solutions for the life cycle of plastics and textiles.  In addition, a sensitivity to CSR issues and proven results in this field was also a key selection factor to join the Board.  The new members’ combined strategic vision, solid industry experience and CSR commitments will support Carbios in its industrial and commercial plans.
 
Prof. Karine AUCLAIR is Professor of Chemistry at McGill University and holds the Tier 1 Canada Research Chair in Antimicrobials and Green Enzymes.  She has received numerous awards over the years, including the Clara Benson Award of the Canadian Society of Chemistry, the McGill Tomlinson Professorship, the Leo Yaffe Teaching Award, and the McGill Fessenden Professorship, to name a few. She is an internationally recognized bioorganic chemist with significant scientific contributions to the fields of antimicrobial resistance, biocatalysis and enzymology. Her research led to several patents notably in the clean enzymatic depolymerization of untreated, high crystallinity PET plastics for closed-loop recycling.  Her work has been published in nearly 100 peer-reviewed publications in high-impact journals, and often highlighted by the media.  As a recognized leader in her field, she is often invited to speak at industrial and academic conferences around the world, and to review theses and grant applications for worldwide institutions.
 
Sandrine CONSEILLER is former Chief Executive Officer of Aigle (the emblematic French brand committed to sustainable fashion).  Prior to joining Aigle, Sandrine was Group Marketing & Branding Executive Vice-President at Lacoste (another historic French fashion brand) from 2011 to 2015.  She contributed to the Lacoste maison turnaround with strong growth and numerous professional awards including several Cannes Lions Awards.  She was also Member of the Executive Board.  Sandrine began her career at Unilever and spent 20 years leading global businesses within various divisions, mainly in Personal Care, in Latin America, Europe, and Asia.  Sandrine is also Member of the Board of Phildar (the iconic French knitwear brand), Member of the Board of Raise Sherpa (the first philantropic endowment fund dedicated to start-ups) and is a funding partner of NEO FOUNDERS (a venture fund mentoring impact start-ups).
 
Amandine DE SOUZA is General Manager of LE BHV MARAIS (French retail, decoration and fashion department stores), Eataly (an Italian gastronomy concept franchise) and Home, DIY and Leisure Purchasing at Galeries Lafayette Group since 2018.  She has been a Member of its Executive Committee since 2020.  Amandine has 17 years’ experience in different types of companies of various sizes: from family business, to start-up,  and multinational.  She was General Manager for France at Westwing (an e-commerce start-up) from 2015 to 2018.  From 2009 to 2015, she was International Merchandise Director at Casino Group (food and non-food retail distribution).  Prior to this, she worked as a strategic consultant at Bain & Company within their Distribution and Consumer Goods Division in France and internationally.
 
Mateus SCHREINER GARCEZ LOPES is Global Director for Energy Transition and Investments at Raizen (global leader in bioenergy from Brazil), leading technology, new business development and intellectual property at the company.  He was previously Global Manager for Innovation and Business Development in Renewable Chemicals at Braskem (the largest producer of thermoplastic resins in the Americas and the world’s largest producer of biopolymers).  Before his transition to the corporate world, Mateus held several researcher and lecturer positions on Synthetic Biology and metabolic Engineering at Universities in Mexico, Germany, United States and Brazil.  He is also a Board Member of Iogen Energy Corporation, Vice-Chairman of the Board of the Brazilian Association of Bio Innovation, and Advisory Committee Member from the MIT Energy Initiative.

CHIC - China International Fashion Fair starts the new year with a new date and fresh ideas. The unrestricted entry to China is possible again and CHIC March will be postponed by three weeks to facilitate visa applications.

From March 28 to 30, 2023 around 1,600 exhibitors will meet on 117,200 sqm at CHIC at the National Exhibition & Convention Center (NECC) in Shanghai.

In 5 halls the fair presents itself in clearly structured segments with the big players and young, up-and-coming designers as well as exciting niche brands in the areas of womenswear, menswear, kidswear, denim, shoes, bags and accessories, young fashion, sportswear, designer brands and overseas brands.

Around 120,000 trade visitors are expected at the upcoming CHIC, serving all major distribution channels in China such as large shopping malls and department stores, agents, distributors, buyers from multi-brand and concept stores, live stream providers, etc. The CHIC organizers invest in intensive visitor marketing measures. CHIC Matching, the successful networking system of CHIC, brings exhibitors and visitors together efficiently and individually. New contacts can be made and cooperation opportunities explored. Comprehensive marketing activities via all relevant channels such as the CHIC WeChat Public Account (> 200,000 subscriptions), the CNGA WeChat mini program (> 100,000 subscriptions) and TikTok ensure visibility.

New: CHIC Showroom, the innovative young showroom concept in Beijing, which is to be expanded and will enable international brands to enter the Chinese market in the medium term.

Freudenberg Performance Materials (Freudenberg) will present surfacing veils and core materials for lightweight fiber reinforced plastic (FRP) parts at JEC in Paris, France. Freudenberg will also be showcasing Enka® Solutions flow media and spacers for efficient vacuum infusion, resin transfer and foam injection molding processes for applications in the composites industry, etc. at the international composites show.
 
Freudenberg’s solutions for the FRP industry include a variety of glass, PAN and PET nonwovens, as well as core materials for the production of lightweight fiber reinforced plastic parts. These products are designed for anti-corrosion coatings in piping and tank construction, smooth UV resistant surfaces for facade panels, and other applications for a diverse range of end products. Products made from fiber reinforced plastics must be equipped with surfacing veils to provide abrasion resistance, corrosion resistance, smooth surfaces and mechanical strength. Freudenberg offers high-tech nonwovens that can meet these challenges.
 
Enka® Solutions products are characterized by their typical 3D entangled polymeric filament structures. Thanks to this structure, they are exceptionally suitable as flow media and spacers when producing composite materials.

adidas published its financial guidance for 2023. While the company continues to review future options for the utilization of its Yeezy inventory, this guidance already accounts for the significant adverse impact from not selling the existing stock. This would lower revenues by around € 1.2 billion and operating profit by around € 500 million this year. Against this background, adidas expects currency-neutral sales to decline at a high-single-digit rate in 2023. The company’s underlying operating profit is projected to be around the break-even level.

Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the write-off of the existing Yeezy inventory and would lower the company’s operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024.

If all these effects were to materialize, the company would expect to report an operating loss of € 700 million in 2023.

In 2022, based on preliminary unaudited numbers, adidas revenues increased 1% in currencyneutral terms. In reported terms, sales were up 6% to € 22,511 million during the 12-months period (2021: € 21,234 million). The company’s gross margin reached a level of 47.3% (2021: 50.7%) in 2022. adidas generated an operating profit of € 669 million last year (2021: € 1,986 million), reflecting an operating margin of 3.0% (2021: 9.4%). Net income from continuing operations was € 254 million in 2022 (2021: € 1,492 million).

The National Council of Textile Organizations (NCTO), representing the full spectrum of the U.S. textile industry from fibers through finished sewn products, welcomed Vice President Kamala Harris’ announcement of $585 million in new textile and apparel investments and sourcing commitments in Central America.

“Over the past year, well over $1 billion of new textile and apparel investments have been announced in Central America and the United States,” said NCTO President and CEO Kim Glas.  “The $585 million of investments and sourcing commitments announced today in the region will continue to build on the strong momentum of growth of nearshoring and onshoring these critical supply chains.”

“The investments and sourcing commitments announced today continue to build on the robust textile and apparel co-production chain between the U.S. and Central America,” said NCTO President and CEO Kim Glas. “We sincerely appreciate the administration’s commitment to this critical manufacturing sector that has contributed to the backbone of economic development in Central America and the United States. And we look forward to working with our retail and brand partners to continue to expand our vital manufacturing sector.”

Over the last year, substantial investments have been flowing into Central America, predicated on the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the co-production chain that facilitates $15.1 billion in two-way textile and apparel trade and supports more than one million workers in the U.S. and the region.

“We saw apparel imports largely containing U.S. textile inputs from the CAFTA-DR region jump 24 percent according to the latest government trade data and we have seen well over $1 billion in investments in the region,” Glas said.

Several NCTO members previously joined the Vice President last year to announce their investments and sourcing commitments, including Parkdale Mills, Unifi, and SanMar.

“These are just a few of the key investments in the region, which illustrates how this co-production chain is continuing to make sustainable investments that strengthen supply chain resilience, create job opportunities and investment in the U.S. and the region, and ensure transparency in our supply chains, as momentum grows for onshoring and nearshoring textile and apparel production,” Glas said. “That is a win-win for our industry and the region.”

The American company WPT Nonwovens invests in a new thermobonding line for filter media. Trützschler Nonwovens teamed up with Schott & Meissner to deliver a state-of-the-art, high-capacity line including the T-BLEND fiber preparation system, two TWF-NC roller cards and Schott&Meissner’s high-speed “Speedliner” belt oven.

Air conditioning systems are not only an integral part of many buildings all over the world. They are vital components in cars, trucks, planes and other. Home and Vehicle Air Conditioning (HVAC) systems often rely on thermo- or through-air bonded nonwovens for air filtering.

WPT Nonwovens is a specialist not only for filtration media but also for nonwovens used in the medical, hygiene and industrial sectors. The US-based company started its business in 2008 and quickly became a trusted supplier of spunbonded, needle-punched, wet-laid and carded nonwovens.

To enable further growth, WPT Nonwovens now decided to invest in a new through-air bonding line. The Trützschler machinery has been selected to ensure reliable fiber preparation and web forming processes for various special, technically demanding filtration media.

The start-up of the through-air bonding line is planned for the 3rd quarter 2023.

Fiery®, which provides Digital Front End (DFE) technology for production and industrial printing, announced that it has been separated from Electronics For Imaging, Inc. (“EFI”) and established as a separate company that will operate independently while remaining owned by EFI’s owner, Siris Capital Group LLC (together with its affiliates, "Siris").

Toby Weiss, long-time Chief Operating Officer and General Manager of Fiery, will continue to lead the business as CEO of Fiery, with Jeff Jacobson serving as Executive Chairman of Fiery in addition to his role as Executive Chairman of EFI.

“Fiery solutions have always been about enabling digital print and making print engines better, and this is a milestone in furthering that mission,” said Mr. Weiss. “Fiery OEM partners will benefit knowing that they are working with a company that is completely focused on adding value to their print platforms with world-class color management, high-performance image processing, and automated workflows.

“Fiery will remain focused on working closely with its OEM partners, including the EFI Inkjet business, to continue developing cutting-edge technology that drives the next generation of automation, accuracy, and profit potential in digital printing,” Mr. Weiss continued. “Fiery now has a greater ability to serve as a neutral partner to ensure OEMs capture success within digital print. We look forward to accelerating our investment as a standalone company, while driving our expanding product portfolio, incorporating world-class color algorithms, and developing advanced cloud technology.”