From the Sector

Santoni Shanghai Knitting Machinery Co., Ltd. announces that it has received regulatory approval from Chinese authorities for its proposed acquisition of Terrot GmbH, a manufacturer of circular knitting machines in Germany.

The acquisition represents a pivotal step in Santoni's strategy to advance the circular knitting machine industry. The integration of Terrot into the Santoni ecosystem is projected to increase Santoni's production capacity and boost its market share, and in conjunction with other strategic objectives, firmly solidify Santoni's position as the leading manufacturer in the industry, with unrivaled scale, depth of innovation and expertise.

Seeking to meet rising demand for high-end circular knitting products, Santoni has pursued an Ecosystem Strategy in recent years, aiming to unify a highly fragmented industry and enhance innovation, sustainability and digitalization to more effectively meet market needs. The deployment of both parties' latest innovation practices, textile automation offerings, integrated enterprise services, C2M solutions, and a platform for designers "Materialliance", will allow Santoni Shanghai and Terrot to connect and bridge demand and offer of circular knitted products.

By incorporating Terrot's offerings, particularly in the double jersey and jacquard sector, Santoni stands to gain a competitive edge in offering machines known for their performance, low maintenance, and cost-effectiveness. Highlighting this shift is Terrot's UCC 572-T, a transfer jacquard machine for sports and leisurewear.

Following the acquisition, Terrot will continue to operate under the leadership of managing directors Robert W. Czajkowski and Dirk Lange. Santoni plans to maintain Terrot’s headquarters in Chemnitz, Germany, along with its facilities, brands, and practices.

HeiQ AeoniQ™ becomes an active brand partner of the Canopy initiative with eleven other companies to address the growing climate and biodiversity crises by committing to keep Ancient and Endangered Forests out of our man-made cellulosic fiber supply chain.

The commitments that HeiQ AeoniQ™ is making are part of solutions-driven non-profit Canopy’s Pack4Good and CanopyStyle initiatives which currently represent collectively 950 brand partners. Together, the initiatives are shifting supply chains away from vital forests to low-impact, circular Next Gen Solutions.

“We must rapidly replace oil-based polyester in the textile industry causing microplastics, global warming, landfill and ecosystem degradation. Cellulose is the most abundant biopolymer in the world and is best suited to replace polyester. However, we must pay attention to cellulose feedstock sources. Our forests, a potential cellulose feedstock, are one of the most important solutions to addressing the effects of climate change. Approximately 2.6 billion tons of carbon dioxide, one-third of the CO₂ released from burning fossil fuels, is absorbed by forests every year. Around 12.5% of global greenhouse gas emissions (5-10 GtCO₂e annually) come from deforestation. We are losing forests at an alarming rate. Every year, around 10 million hectares of forests globally are destroyed. We need immediate action to increase forests again. Canopy is our go-to partner to replace polyester with circular & sustainable cellulose feedstock for our innovative HeiQ AeoniQ™ fiber revolution.” said Carlo Centonze, HeiQ Group CEO.

Paper packaging is also a key driver of forest loss globally, as 3.1 billion trees are cut down annually to produce the boxes and bags in which products are packaged and shipped. Paper packaging production has increased by 65% over the past two years.

“The range of companies and sectors represented in today’s announcement reflects the breadth of market response to the growing climate and biodiversity crises and intensifying supply chain disruptions,” said Nicole Rycroft, Founder and Executive Director of Canopy. “Today’s brand partners add significant momentum to global conservation efforts and the movement to transform ‘take, make, waste’ supply chains to be lower-impact and Next Gen.”

Today, as part of Pack4Good, HeiQ AeoniQ™ committed to:

• Eliminate Ancient and Endangered Forests from our paper packaging supply chain.
• Reduce material use through design innovation.
• Maximize recycled content.
• Explore and scale alternative Next Gen fibers (such as agricultural residues).
• Where virgin fiber is necessary, use FSC-certified fiber.

The European Chemicals Agency (ECHA) has found that substances causing cancer, genetic mutations or harming reproduction are present in childcare products, such as car seats, bibs and baby changing mats. Its investigation will help the European Commission to prepare an EU-wide restriction to limit these chemicals, with the aim of safeguarding children.

ECHA’s investigation, drawing on information from 48 different sources, shows that substances which are carcinogenic, mutagenic or toxic for reproduction (CMR) may be present in childcare products (articles). Metals like cobalt and lead, along with phthalates like DEHP, are the most common CMR substances found in childcare products.

CMRs were most often found in items like car seats, bibs, products related to toiletries, and bedding and mattresses. Children may be exposed to these hazardous substances during use, for example through skin or oral contact, and are particularly vulnerable to the harm caused by chemical substances because of their small size, developing physiology and behaviour.

ECHA’s report provides elements to support the European Commission in the preparation of a potential future restriction. These include information on how childcare articles are defined, what the restriction could cover, potential derogations, recommended concentration limits and timeframes for implementation. The report also includes views from ECHA’s Enforcement Forum on how feasible it would be to enforce such a restriction.

The report will now be sent to the European Commission, who will use it to prepare a draft restriction proposal under REACH Article 68(2). This procedure allows the Commission to prepare a restriction proposal without involvement of ECHA’s scientific committees.

Background
The purpose of ECHA’s investigation is to support the European Commission in preparing a restriction under the REACH Regulation to protect children from exposure to CMR substances in childcare articles. It focused on substances that have a harmonised classification under the Classification, Labelling and Packaging (CLP) Regulation as a CMR in category 1A (known human carcinogen, mutagen or reproductive toxicant) or 1B (presumed human carcinogen, mutagen or reproductive toxicant).

During the investigation, ECHA organised two public calls for evidence and a consultation on the draft report. The Agency contacted 233 different stakeholders to inform about the work and considered their feedback.

As part of the company's international expansion, the growing French market is becoming increasingly important. This is why the textile company is now broadening its organisation: since mid-October 2023 Maike Bruns joined the sales team in France on a permanent basis.

The communications graduate has already lived in Paris and most recently promoted sales and market development in an Amsterdam start-up in the healthtech sector.

At Dibella, her focus will be on representing the company on the French market, supporting the existing team and jointly expanding the French customer base.

Hologenix® is an honoree on the second annual Power Partner Awards list by Inc. Business Media. Inc.’s 2023 Power Partner Awards feature B2B organizations across the globe that have proven track records supporting entrepreneurs and helping startups grow. There were 389 companies in all who achieved top marks from clients for being instrumental in their success and made the final list. Hologenix was recognized in the Health & Wellness category, which focuses on companies that provide health and wellness products or services. In order to achieve this status, customers provided written testimonials detailing their experience in working with Hologenix as a partner.

“Our business is set up to succeed when our partners succeed, so we are grateful that our partners have affirmed the superior level of support we aim to provide,” said Seth Casden, Hologenix CEO and Co-Founder. “CELLIANT offers something unique to world-class brands looking to deliver health and wellness benefits. Our proprietary technology offers a key textile differentiator for their products, from apparel, bedding and furnishings to medical-use fabrics, bandages and wraps, transportation seating and even saunas.”

Solvay announced the future Board of Directors of SYENSQO, effective upon completion of the planned separation of Solvay into two companies – SOLVAY and SYENSQO – which is on track to be completed in December 2023.

SYENSQO’s Board will be composed of 10 members, including 6 independent members, 3 members representing the reference shareholder, Solvac, and the company CEO. They have deep expertise in specialty industries, international business operations, risk management, corporate governance, finance and clean technology.

The following individuals will serve on the SYENSQO Board of Directors:
Rosemary Thorne will serve as independent Director and Chair of the SYENSQO Board, as well as Chair of the Board’s Finance Committee. She is currently an Independent Director on the Solvay Board of Directors, appointed in 2014, and Chair of the Board’s Audit Committee. She is also an Independent Director on the Board of Merrill Lynch International (UK), a wholly-owned subsidiary of Bank of America, serving as Chair of the Audit Committee. Ms. Thorne has decades of financial leadership experience across a wide range of industries. She previously served as Chief Financial Officer at J. Sainsbury, the UK’s largest supermarket chain at the time; Bradford & Bingley; and Ladbrokes. Ms. Thorne previously sat as an Independent Director on the Boards of Royal Mail Group, Cadbury Schweppes, Santander UK, First Global Trust Bank and Smurfit Kappa Group.

Dr. Ilham Kadri will serve as Chief Executive Officer and member of the Board of Directors of SYENSQO. She is currently CEO and President of the Executive Committee at Solvay. Ms. Kadri has successfully led the turnaround of Solvay, delivering double-digit EBITDA growth and 18 consecutive quarters of positive free cash flow, deleveraging the balance sheet and promoting superior people engagement. She is an independent Board member at A.O. Smith and L’Oréal. She is active in non-profit organizations, as Chair of the World Business Council for Sustainable Development (WBCSD), member of the steering committee of the European Round Table of Industrialists (ERT) as well as a permanent member of the World Economic Forum’s International Business Council (WEF). Ms. Kadri has extensive leadership experience across a variety of industries in four continents and with leading industrial multinationals, including Shell, UCB, Huntsman, Dow, Sealed Air. Prior to Solvay, she was CEO and President of Diversey in the USA, led the company’s return to profitability and resulting spin off and divestiture to Bain Capital. She founded two non-Profit foundations: the Solvay Solidarity Fund in Belgium in 2020 which supported more than 7000 families affected by Covid-19 and natural disasters; and founded the ISSA Hygieia Network in 2015 in the USA, to help women in the cleaning industry. She received two Doctor Honoris Clausa from EWHA University in Korea and Université de Namur in Belgium.

Julian Waldron will serve as independent Director and Chair of the Audit Committee. He currently serves as Deputy Executive Chairman of privately-held Albea Group, a global beauty and personal care packaging company which operates 35 facilities in Europe, Asia and the Americas. Mr. Waldron has held senior leadership roles at several leading listed companies in the industrial, technology and services sectors and brings a wealth of expertise in finance and business operations. Prior to joining Albea in 2022, he was Chief Financial Officer of Suez for three years after serving as Chief Financial Officer and subsequently Chief Operating Officer of Technip. He started his career at UBS Warburg where he spent 14 years. Mr. Waldron also served as an independent Board member and Chairman of finance, risk and investments at Carbon Clean, a privately-owned carbon capture company dedicated to achieving net zero.

Heike Van de Kerkhof will serve as independent Director and Chair of the Nomination Committee. She currently sits on the Board of OCI N.V.. Ms. Van de Kerkhof brings more than 30 years of experience in the chemicals, oil & gas and materials industries, having served in numerous leadership roles around the globe. From 2020 to 2023, she was Chief Executive Officer of Archroma Management, a global specialty chemicals company. During her tenure, she successfully completed the transformational acquisition of Huntsman’s Textile Effects business. Prior to her role at Archroma, Ms. Van de Kerkhof served as Vice President of Lubricants, Western Hemisphere at BP, and held positions at Castrol, The Chemours Company, and Neste Corporation. She also held many leading roles within DuPont over 18 years.

Matti Lievonen will serve as independent Director and Chair of the Compensation Committee. He is currently an independent director on the Solvay Board, appointed in 2017. Mr. Lievonen is a proven executive in the energy, forestry, power and automation industries with an extensive track record of leading businesses through climate transition. For over ten years until 2018, he served as Chairman and Chief Executive Officer of Neste Corporation, a global leader in next-generation renewable fuels and chemicals. During his time at Neste, Mr. Lievonen successfully promoted the development of clean fuels as well as Finland’s bioeconomy strategy in advancing renewable transportation fuels. He has also been involved with organizations such as Fortum Board, SSAB, Nynäs AB, Ilmarinen, and the HE Finnish Fair Foundation. Until 2021, Mr. Lievonen was also Chairman of the Board of Directors at Fortum. He has been recognized for his admirable leadership and expertise, and in 2016 was awarded an Honorary Doctorate of Technology by the Aalto University Schools of Technology.

Dr. Françoise de Viron will serve as non-independent Director, Chair of the ESG Committee and Vice-Chair of the Board. She is currently a director of the Solvay Board, appointed in 2013. Ms. de Viron is a regarded academic leader and has extensive experience in innovation, R&D and qualitative research. She is a Professor Emeritus at the Faculty of Psychology and Education Sciences and Louvain School of Management at UCLouvain in Belgium where she has been an Academic Member of various groups at UCLouvain. Ms. de Viron previously served as the president of AISBL EUCEN – the European Universities Continuing Education Network. Prior to her university position, from 1985 to 2000, she was in charge of developing Artificial Intelligence applications at Tractebel S.A. (now Tractebel-Engie).

Roeland Baan will serve as independent Director. He currently serves as President and Chief Executive Officer of Topsoe, a privately-held leading provider of clean energy and petrochemical technologies. He is also Chairman of the Supervisory Board of SBM Offshore NV. Roeland Baan has extensive experience in supply chain management, M&A, business development and operations management. Prior to joining Topsoe in 2020, he was President and CEO of Outokumpu and has held several executive roles at global organizations such as Aleris International, ArcelorMittal and SHV NV. He spent over 16 years in various roles across the globe at Shell, living in South America, in Africa and in the United Kingdom.

Edouard Janssen will serve as non-independent Director. He is currently a Director on the Solvay Board, appointed in 2021. Earlier this year, he was appointed Chief Financial Officer of D’Ieteren Group, a European leader in automotive distribution services. Mr. Janssen is also a Board member of privately-held Financière de Tubize and Union Financière Boël, as well as Co-Founder and Chair of Trusted Family. Mr. Janssen is active in academics, as Vice-Chair of the International Advisory Board of the Solvay Brussels School of Economics and Management and on the advisory board of the INSEAD HGIBS. He brings expertise in finance, strategy, entrepreneurship, business management, planning and marketing. He has served as Solvay’s Vice President in strategy and M&A between 2019 and 2021, and prior to that, he was the US-based General Manager for North- and Latin America at Solvay’s Aroma Performance Global Business Unit.
 
Dr. Mary Meaney will serve as non-independent Director. She is currently a member of the Board of Directors and of the Audit Committee of Groupe Bruxelles Lambert SA. She also sits on the Board of Directors and the Remuneration Committee of Beamery, the privately-held talent management company. She is a member of the Board of Directors and of the Finance Committee of Imperial College, London.Dr. Meaney will bring expertise in Strategy, M&A, and change management, which she acquired over a 24-year career at McKinsey. She was a Senior Partner, served on the McKinsey Shareholders Council and led McKinsey’s global Organization practice.

Nadine Leslie will serve as independent Director and is based in the United States of America. She is currently a member of the Board of Directors of Provident Financial Services , as well as a Non-Executive Director of Seven Seas Water Corporation, a water and wastewater treatment multinational company. She also sits on the Board of Trustees of Hackensack Meridian Health Network and is active as strategic consultant for civil engineering firm T&M Associates. Over a 22-year career at Suez, Ms. Leslie held several leadership positions, the last one being Chief Executive Officer of Suez North America, until 2022. Previously she served as Executive Vice President Health & Safety.

Rieter’s cumulative sales in the first nine months of 2023 amounted to CHF 1 092.9 million (2022: CHF 987.4 million), an increase of 11% compared to the prior-year period. In particular, supply bottlenecks eased slightly, which allowed more machines to be delivered than in the same period last year. Sales in the third quarter of 2023
were CHF 334.7 million (Q3 2022: CHF 366.8 million).

The Business Group Machines & Systems generated total sales of CHF 749.6 million in the first nine months of 2023 (+18%). The Business Group Components posted sales of CHF 206.8 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded growth of 13% to CHF 136.5 million in the first nine months of 2023.

Order intake in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts continued to weaken due to the slowdown in spinning mill capacity utilization. Rising interest rates and high energy and raw material prices also had a dampening effect.

In this market environment, the Rieter Group received orders totaling CHF 452.2 million in the first nine months of 2023 (2022: CHF 1 095.8 million). In the third quarter of 2023, orders decreased by 44% year-on-year to CHF 127.2 million (2022: CHF 226.4 million).

Rieter expects the market to have bottomed out in the year 2023 and anticipates a gradual market recovery in the course of the 2024 financial year.

As of September 30, 2023, Rieter has an order backlog of around CHF 900 million (September 30, 2022: CHF 2 000 million). The current order backlog will allow good capacity utilization at the production facilities into the coming year. The cancellation rate in the reporting period was within the usual range, averaging around 5% of the order backlog, with a slight downward trend.

In July 2023, the Group launched the “Next Level” performance program aimed at strengthening sales excellence, sharpening customer focus, improving cost efficiency in production and optimizing fixed cost structures. By taking these measures, Rieter intends to create the basis for providing an even more agile response to the cyclical nature of the machinery business. The objective of the planned initiatives is to ensure the profitable and sustainable development of the group.

The performance program includes provisions for the net reduction of approximately 300 positions in overhead functions across the group, primarily in Germany and Switzerland. The consultation processes initiated with the employee representatives in Ingolstadt (Germany) and Winterthur (Switzerland) were completed in the third quarter of 2023. The majority of these workforce reductions are expected to be implemented by the end of December 2023.

Due to the current market situation, further market- and volume-related adjustments in the range of 400 to 600 positions will be necessary, mainly in production. However, the actual number of positions to be reduced depends on the order intake in the coming months.

Rieter continues to expect that the strategic and operational measures initiated will result in one-off restructuring costs of around CHF 45 to 50 million, which will impact earnings in the 2023 financial year.

Outlook for the full year 2023 confirmed
As announced on July 20, 2023, in view of the economic situation and the ongoing cyclical market weakness, Rieter continues to expect below-average demand for new equipment in the coming months. A revival is not anticipated until the end of 2023 at the earliest. Likewise, Rieter believes that demand for consumables, wear & tear and spare parts will not recover until towards the end of 2023.

For the full year 2023, Rieter expects an EBIT margin of around 5 to 7% (including positive special effects of less than 2%) and sales at the previous year’s level of around CHF 1.5 billion.

adidas and IVY PARK unveil the final installment of their collaboration together, titled IVY PARK NOIR.
The new range represents a culmination of the two brands’ work together, combining adidas’ athletic and functional excellence, with IVY PARK’s signature emphasis on shape, and trend-defying creative vision. Using a singular, black color palette, IVY PARK NOIR intentionally draws focus to fabric, fit and texture, cultivating enduring elegance through sensual, material play.

Considering all chapters of an active way of life- from warm up, to cool down- the collection elevates one’s everyday pursuits through a mix of tight and loose fitting styles. Fabrications include luxurious embossed leather, exposed mesh and lacquered latex that combine to create a complex yet sophisticated capsule. Standout pieces include body-con cropped top and pant, relaxed 3-D molded knit sweatsuits, multifunctional jackets, and the IVY PARK signature jersey.

IVY PARK NOIR’s offering includes footwear that re-imagines a new era of style and function. Sleek molded and debossed elements add an architectural foundation to the collection’s sneakers, while a chunky, over the knee boot offers utilitarian fantasy.

After four decades in the packaging industry, the Manjushree Group is entering the Indian nonwovens market. The entrepreneurs rely on a flexible RF Smart Composite line from Reifenhäuser Reicofil to meet very different customer requirements.

The Manjushree Group operated a blown film line for packaging materials for the tea industry in the eastern part of India as early as 1983. In the years that followed, Manjushree Technopack Ltd. developed into one of the largest suppliers of solutions for rigid plastic products in South Asia - and the family business grew into a group with several business segments. In 2018, the entrepreneurial family repositioned itself: it sold its previous core business to a financial investor and established Manjushree Ventures with footholds in start-up financing, real estate business, and manufacturing - the largest of which is Manjushree Spntek as a producer of high-quality spunmelted fabrics.

Since February 2023, Manjushree Spntek has been producing high-performance spunmelts on an RF Smart Composite line from Reifenhäuser Reicofil - benefiting both from many years of experience in the packaging industry and from experience with Reifenhäuser's blown film lines. "We know a lot about plastic extrusion, for example when it comes to line operating parameters such as temperature and pressure. Processing is similar in both industries," explains Rajat Kedia. "The main difference is the distribution of the products: In plastic packaging, we had an established customer base and sold a lot of material to the big consumer goods manufacturers. The nonwovens market in India, on the other hand, is still forming, with thousands of small companies currently getting involved." These serve customers in their regions, such as hospitals.

The RF Smart Composite line is a standardized spunmelt line for smaller and emerging markets. The line produces nonwovens of the highest Reicofil quality with appropriately adapted throughput. This makes it ideally suited for applications in hygiene and medical technology and, with typically 8,200 annual production hours, it is extremely reliable. In addition, operators can start production quickly because in many cases the line can be integrated into existing buildings.

Before production could start, Manjushree built a new production building in Bidadi, a town an hour's drive from Bangalore International Airport. The building is designed to be sustainable: It uses natural light and fresh air, has comprehensive contamination control, and obtains almost all of its energy from renewable sources. Reifenhäuser Reicofil then installed, commissioned and tested the RF Smart Composite line.

Since February 2023, Manjushree Spntek has been producing high-quality spunmelted nonwovens, including ultra-soft fabrics and fabrics with special coatings for customers in the hygiene and medical industries. The material can be used, for example, for baby diapers and feminine hygiene products, but also for medical articles ranging from surgical gowns to surgical drapes.

The new Orthopac RXVMC-20 automatic straightening system for forward control of knitwear with strong distortions can remove distortions in textile webs even faster and more precisely.

"With the new straightening concept, special attention was paid to the straightening mechanics and their interaction with the analysis electronics of the scanner system," explains Head of Sales Thomas Höpfl. Two individually controlled and driven straightening modules with a total of four bow and three skew rollers ensure that the correction of bow and skew distortions takes place in small steps. The control concept is also new. A scanner group at the infeed of the straightening machine detects distortions even before they reach the correction rollers. This way, the rollers are brought directly into position and the fabric is corrected from the very first centimetre. A scanner group at the outlet also detects possible residual distortion, which is corrected at the second straightening module. This enables an even more precise and faster response when it comes to reacting to rapidly changing distortions.

The Orthopac RXVMC therefore shows its full strength when straightening knitwear and distortion-sensitive fabrics. Knitted fabrics are special in terms of distortion dynamics. It is difficult for operators when changing the fabric rolls to join the relatively short fabric webs with weft and loop-straight seams. Before and after unavoidable insufficient seams, the distortion (e.g. right before to left before) changes abruptly. Conventionally, the distortion change is only detected by scanning at the output of the straightener.
 
The RXVMC concept enables a shortened reaction time to jumping distortion, (especially in the case of seams) due to the improved scanning concept with scanning at the outlet and inlet. This reduces knitted fabric outside the straightening tolerance up to 50 percent after each seam. Fewer fabric pieces have to be reprocessed. It guarantees higher quality goods and thus less waste.